Moving Insurance Policies and Claims

Most homeowners and renters will move at least once in their lives. Many use moving companies to help them move their personal belongings. Although most professional movers do their best, mistakes happen.

If you’re looking for a professional mover or moving company, you should also investigate options for protecting your belongings. Moving insurance can help you have peace of mind during a move.

Unfortunately, the process of moving into your new home doesn’t always go as expected. If a dispute arises between you and your moving company or insurance company, get help from a consumer law attorney. If you discover a serious property issue while moving, a real estate attorney can offer advice.

Should I Hire a Moving Company?

The first step in your move is deciding whether you need a moving company. Many people, especially those with few personal belongings, opt to move themselves.

A DIY move on your own typically involves the following steps:

• Hire a moving truck
• Pack up your personal belongings
• Load and drive the moving truck
• Unload and return the rental truck

By contrast, other people opt for a moving company or full-service movers, which usually do the following:

• Load your things onto the moving truck
• Drive to your new home
• Unload the moving van as directed

Whether you do it yourself or hire a company, moving insurance can help protect your belongings and peace of mind.

Should I Get Moving Insurance?

Whether you’re hiring movers or moving on your own, buying a moving insurance policy is usually a good idea. Insurance is especially helpful if you own items you couldn’t afford to replace out of pocket.

We use insurance to protect us financially from the unforeseen. Car insurance protects us from financial calamity if we get into an accident. Similarly, moving insurance protects us and our personal belongings when using a moving company.

You’ll need to be prepared for factors outside your control, such as:

• Weather
• Natural disasters
• Traffic conditions
• Crime

Anything can occur during a move, especially a long-distance move. International moves could require you to ship your belongings overseas. But even interstate moves and local moves could damage your property. Moving inherently increases the risk of damage and loss to your belongings. Insurance helps mitigate this risk.

Depending on the type of coverage you select, the insurance company will help make you whole for specific losses. They don’t protect against every scenario, such as “acts of god,” but they offer compensation for many forms of damage. You can get moving insurance if you contract with a moving company or decide to move your belongings independently.

Will My Current Policy Cover Moving Damage?

If you already have renters insurance or a homeowners insurance policy, it depends on your specific policy coverage. You should verify whether it also covers moves. But it’s unlikely that home insurance will offer robust protection during the moving process.

Types of Moving Insurance Coverage

You have several options to get moving insurance. You should carefully consider your coverage options because they can make a big difference if you need to file a claim later.

Federal law regulates insurance for moving across state lines. The Federal Motor Carrier Safety Administration (FMCSA) of the U.S. Department of Transportation governs moving company insurance for interstate movers. Valuation coverage refers to the set amount of money the policy covers.

Interstate moving companies must offer the following two types of valuation options:

• Full value protection: More expensive policy offering more protection
• Released value protection: No-cost policy offering minimal protection

You also have the option of buying separate third-party moving insurance.

Full Value Protection

Under this type of coverage, the mover must repair or replace, at current replacement value, any personal property damaged or destroyed during the move.

If your personal property or valuable items get lost or damaged in your move, your mover must do one of the following:

• Repair the item
• Replace with an item of similar value
• Offer a cash settlement

Released Value Protection

Released value protection (RVP) offers minimal basic coverage. Under this type of moving insurance, the movers will pay 60% of a dollar (60 cents) per each pound of your personal property.

Imagine you own a $200 lamp that weighs 10 pounds. You might think the movers would pay 60% of the lamp’s full value if they break it, but that’s not true under released value coverage. Instead, you would get 60 cents per pound, which is only six dollars. Six dollars is far less than the actual replacement cost you’d have to pay to get a new lamp.

RVP is free, but it probably won’t pay enough to repair or replace damaged items of value.

Third-Party Insurance Through Your Movers

Moving companies may also offer a third-party policy. Note that this option differs from using your own independent third-party insurer.

This third-party insurance is a state-regulated moving insurance option to supplement your released value coverage. This coverage option works in tandem with RVP.

Reconsider the lamp example from the section above. If you have RVP and this third-party insurance, you will recoup the full replacement value. Instead of six dollars, you would receive $200.

Third-Party Insurers

Separately from your moving company’s options, you can use a third-party insurer if you don’t want to use either of the federally mandated moving insurance offerings. This type of insurance is ideal for those who own high-value items.

As with other types of insurance, you must find an insurance provider offering moving coverage. You can contact an insurance agent for more information on your third-party insurance options.

How To Protect Your Belongings While Moving

If you have a moving insurance policy, read the terms and conditions carefully. A mistake or misunderstanding could risk the denial of a moving insurance claim.

Here are a few tips for preparing for your move:

• Review all your obligations under the contract with your movers before you begin the process.
• Check whether your insurance policy limits movers’ liability for items of extraordinary value, such as artwork, collectibles, jewelry, and electronics. You may need to list these items in a separate moving inventory or self-move them.
• Do not try to secretly pack prohibited items, such as liquids, hazardous chemicals, or flammable substances.
• Verify the inventory list from the movers carefully to address any missing items or incorrect condition details before providing your signature.
• Make all payments in full by the deadline in your contract.
• If you notice damage during the moving process, don’t wait too long to file a claim with the insurer.

The FMCSA offers more information in its guide, Your Rights and Responsibilities When You Move. Under federal law, interstate movers must provide this informational guide to consumers.

Property Damage and Disputes With Your Mover

In an ideal world, your entire move would go smoothly. The movers arrive on time, and your items arrive intact at your new destination. Unfortunately, moving is risky, and accidents and losses often occur.

Here are a few tips to help you resolve any disputes with your movers:

• Read your contract
• Communicate, preferably in writing
• File an insurance claim
• File a complaint or arbitration
• File a lawsuit

The following sections will explain these steps in more detail.

Review Your Moving Contract

Once you sign a contract with a moving company, you’re in a binding agreement with that company. The contract is your guide to all matters that arise. Be sure to read the contract carefully and hire an attorney if you need help understanding or interpreting what the contract means.

Be sure to note the following:

• Exclusions
• Premiums
• Deductibles

Make sure that you followed the guidelines outlined in your contract. For example, if your mover requires a detailed list of high-value items, provide that list before you move.

Communicate

You can avoid many disputes through solid communication. Think of your move as a partnership with you and the moving company. The success of your move may rest on your willingness to communicate with the movers.

For example, document everything in writing. This helps to preserve the record and protect all parties. If you must submit a list of valuable items, make sure the list is legible and accurate.

File an Insurance Claim

For an interstate move, you’ll have at least nine months after the delivery of your personal property to file a claim. The time limit for a local move may differ.

To begin the claims process, you can request a claim form from the moving company or third-party provider. Be sure to document all moving damage with photos, videos, and notes.

If you receive a claim denial, but you believe your claim is valid, seek legal advice.

File a Complaint

You can file a complaint with the U.S. Department of Transportation if you have experienced fraud. Please note there is no guarantee that the FMCSA will investigate your complaint.

Alternatively, you can seek resolution through arbitration. The FMCSA requires that movers have an arbitration or dispute resolution system in place to cover customer disputes.

File a Lawsuit

You can also file a lawsuit against the moving company or third-party insurer if other options don’t work.

Filing a lawsuit includes the following:

• Filing a complaint
• Serving complaint
• Court proceedings (if necessary)

Although you can likely file a lawsuit independently, you should seek legal help before attempting to do so.

Get Legal Help for Your Move

Moving is a stressful experience with many parts. Finding the right insurance policy can prevent headaches and help ensure a successful move.

An attorney can help you at any stage, from signing the contract to filing a complaint. Speak to a consumer protection attorney about issues with your movers. Otherwise, consult a real estate lawyer about unexpected property issues once you move into your new home.