Moving Insurance and Valuation: What You Are Actually Buying

The short answer

What movers provide is called valuation, and it is not insurance. Valuation sets the level of the mover’s liability if something is lost or damaged. Insurance is a separate product sold by an insurance company.

On an interstate move you must be offered two valuation levels:

• Released Value Protection — included at no extra charge, and limited to 60 cents per pound per article;
• Full Value Protection — the mover may repair, replace, or settle in cash under the applicable terms, for a charge.

Released Value sounds acceptable until you do the arithmetic. A 30-pound television is covered for $18.

Valuation is not insurance

This distinction matters more than any other point on this page, because the two words get used interchangeably in the industry and they mean different things.

Valuation is part of the transportation contract. It is the maximum amount the mover is liable for, and it comes from the option you select in the move documents. Insurance is a policy issued by a licensed insurer, governed by state insurance law, and bought separately.

A mover that says everything is fully insured is skipping the part you need to understand. Ask instead which valuation option is written into your paperwork, and at what limit. The FMCSA sets out both options and how they work in its liability and valuation guidance.

Released Value Protection

This is the default on an interstate move if you do not choose anything else. It costs nothing, and it pays 60 cents per pound per article.

The number is per pound, not per value. That is the whole problem:

• a 30-pound TV worth $900 → $18;
• a 10-pound laptop worth $1,800 → $6;
• a 5-pound box of dishes worth $400 → $3;
• a 200-pound dresser worth $1,200 → $120.

Released Value makes sense for a small move of replaceable items, or when your own policy already covers the shipment. For anything else, read the second option carefully before you sign.

Full Value Protection

Under Full Value Protection, the mover is responsible for the replacement value of the shipment. For an item that is lost or damaged, the mover may repair it, replace it with a like item, or make a cash settlement, according to the terms in your documents.

It is not unlimited coverage, and it is not the same as an insurance payout. Points to check in writing:

• the declared value of the shipment and how it was calculated;
• the deductible, if the plan has one;
• which of the three settlement methods the mover may choose;
• the treatment of items of extraordinary value;
• what is excluded, and what documentation a claim requires.

Items of extraordinary value — usually defined as worth more than $100 per pound — must be listed specifically. An unlisted painting or a box of jewelry is not covered at its real value simply because you selected the higher option.

Moves inside California

Interstate valuation rules do not automatically apply to a move between two California addresses. Intrastate household moves are regulated at the state level, and the terms that govern your move come from your move documents and the applicable state rules.

Before you book, check that the mover is licensed for household goods in California and read what the paperwork says about liability. The Bureau of Household Goods and Services publishes consumer guidance for California household movers, including how to verify a mover and what your documents should contain.

Do not assume the 60-cents-per-pound figure applies to a local move. Ask what applies to yours.

Third-party moving insurance

Separate coverage is worth looking at when the shipment includes high-value items, or when you want a claim handled by an insurer rather than under a transportation contract.

• Trip transit or relocation insurance. A short-term policy covering the shipment in transit, sold by an insurer or a broker.
• A rider on homeowners or renters insurance. Some policies cover property in transit; many limit it or exclude it. Call and ask before assuming.
• Rental truck coverage. If you drive yourself, the truck company sells damage waivers and cargo coverage. Your auto policy usually does not extend to a rental truck of that size.

Whatever you buy, read the exclusions first. Policies commonly exclude items you packed yourself, mechanical failure without external damage, and mold or pest damage.

What it costs

Released Value is included at no charge. Full Value Protection is priced from the declared value of the shipment, and the charge depends on that value and on any deductible you select. Third-party policies are priced by the insurer.

There is no single rate worth quoting, and any figure printed in an article will be out of date. Ask for the exact charge in writing with your estimate, alongside the declared value it is based on. On a flat-rate move, that charge belongs in the written scope, not in a conversation on move day.

Before you sign

• Which valuation option is written in the documents, and at what limit?
• Is there a deductible?
• Have items of extraordinary value been listed?
• Are self-packed boxes treated differently from crew-packed boxes?
• What is the deadline for filing a claim, and what does it require?
• Is the estimate binding or non-binding?
• Is the mover licensed for household goods in the states involved?

On the last two, the FMCSA explains how a binding estimate differs from a non-binding one.

If something is damaged

Document it before you move anything. Photograph the item and the packaging where it sits, note it on the inventory or delivery paperwork before the crew leaves, and keep the box and materials until the claim closes.

File in writing, within the window stated in your documents. Include the inventory number, photographs, a description of the damage, and proof of value such as a receipt or a comparable listing.

Ask at booking who handles claims and how long a decision usually takes. A mover that answers this clearly before the move is telling you something useful.

How we handle it

Halo by California Movers USA explains the available valuation options before the move rather than at the truck. Standard physical protection — blankets, mattress covers, wrapping for furniture, and added care for televisions, artwork, and mirrors — is part of the quoted scope, and the lead foreman confirms how fragile items are wrapped and loaded.

Items you want treated as high value should come up during the walkthrough, so they can be listed in the documents rather than remembered later. See long-distance moving and interstate moving for how each is planned, and pricing for how a written scope is built.

Related reading: how to pack for a move, packing a TV, packing dishes, and the moving FAQ.

Questions people ask

Is moving insurance required?

No. On an interstate move the mover must offer you the two valuation levels, and you choose. Separate insurance is optional.

Does homeowners insurance cover a move?

Sometimes, partially. Coverage for property in transit varies by policy and often carries lower limits. Call your insurer and ask specifically about goods in a mover’s custody.

Are boxes I packed myself covered?

Often not for internal damage, unless the box shows external damage. This is one of the most common claim denials, and it is a reason to have fragile items packed by the crew.

What is not covered at all?

Typically cash, deeds, passports, and similar documents, plus perishables and anything on the prohibited list. Those should travel with you.

How long do I have to file a claim?

The deadline is in your move documents. Note any damage on the paperwork at delivery regardless, because that record supports the claim.

Does the four-payment option apply to the valuation charge?

The installment service reviews the invoice as a whole and assigns an available amount, generally between $600 and $4,000, after registration. Approval and the amount are the provider’s decision, and a booking deposit is still required. See payment options.

Tell us what you are moving and we will come back with a starting quote.