Moving Insurance vs Valuation: What You Need to Know

Every year, thousands of moves result in damaged or lost items. While professional movers like SOS Moving take every precaution, accidents can happen—trucks can be in accidents, boxes can be dropped, and items can mysteriously disappear. Understanding the difference between moving insurance and valuation coverage could save you thousands of dollars and countless headaches. This comprehensive guide breaks down everything you need to know about protecting your belongings during a move.

The Critical Difference: Insurance vs. Valuation

Here's the most important fact most people don't know: moving companies cannot legally sell insurance. What they offer is "valuation coverage," which is different from insurance in crucial ways.

Moving Insurance:

Purchased from third-party insurance companies
Covers full replacement value
Files claims with insurance company
Regulated by state insurance commissions
Can cover acts of God, natural disasters

Valuation Coverage:

Provided by moving company
Limited liability protection
File claims with mover
Regulated by federal/state transportation agencies
May exclude certain types of damage

Understanding this distinction is crucial for making informed decisions about protecting your belongings.

Types of Valuation Coverage

Federal law requires interstate movers to offer two types of valuation coverage:

Released Value Protection (Basic Coverage)

Cost: Free (included in every move)

Coverage: $0.60 per pound per item

Reality Check: This is essentially worthless. If your 50-pound flat-screen TV worth $2,000 is destroyed, you'll receive $30 (50 pounds × $0.60).

When It Makes Sense: Only if you're moving replaceable items with no sentimental or monetary value.

Full Value Protection (Comprehensive Coverage)

Cost: Varies, typically $100-500 for local moves, more for long-distance

Coverage: Repair, replace, or reimburse for current market value

The Fine Print:

Deductibles may apply ($250-500 typical)
Depreciation considered (your 5-year-old laptop isn't worth retail)
"Extraordinary value" items must be declared

Important: Even "Full Value" has limitations. Items valued over $100 per pound must be specifically declared.

What's Actually Covered?

Typically Covered Under Full Value Protection:

Furniture damage from improper handling
Electronics broken during transport
Lost boxes (if properly inventoried)
Water damage from mover negligence
Items damaged by mover-caused accidents

Usually NOT Covered:

Pre-existing damage
Items you packed yourself (unless obviously mishandled)
Natural disasters (floods, earthquakes)
Items in storage over 90 days
Perishables, plants, or pets
Important documents or cash

The "Packed by Owner" Exclusion

This is huge: if you pack a box yourself and items inside break, coverage typically doesn't apply unless the entire box is crushed or obviously mishandled. This is why professional packing services can actually save money—they ensure coverage eligibility.

Third-Party Moving Insurance Options

For complete protection, consider actual moving insurance from these providers:

Specialized Moving Insurance Companies

Companies: MovingInsurance.com, Baker International, Transit Insurance

Coverage: Up to full replacement value

Cost: Typically 1-2% of declared value

Advantages:

Covers everything valuation doesn't
No depreciation (replacement cost coverage available)
Covers PBO (packed by owner) items
Natural disaster protection

Example Pricing: $100,000 of coverage costs $1,000-2,000

Homeowners/Renters Insurance

Check Your Policy: Some policies cover moves, but usually with limitations:

Often only 10% of personal property coverage applies
High deductibles may apply
May not cover professional movers (only DIY moves)
Interstate moves often excluded

Action Step: Call your agent BEFORE moving to understand coverage.

High-Value Items: Special Considerations

Items requiring extra attention and coverage:

Art and Antiques

Require professional appraisal
Consider separate fine arts policy
Document with photos from multiple angles
Use white glove moving services for handling

Electronics and Computers

Back up all data (not covered by any insurance)
Original packaging provides best protection
Serial numbers must be documented
Consider replacement cost coverage

Jewelry and Collectibles

Often excluded from standard coverage
May need separate valuable items policy
Should travel with you, not in moving truck
Document with photos and appraisals

Wine Collections

Temperature-sensitive, needs special coverage
Professional wine moving services recommended
Individual bottle documentation required
Consider specialized wine insurance

Filing a Claim: The Step-by-Step Process

If damage occurs, proper claim filing is crucial:

Immediate Steps (At Delivery)

Note damage on Bill of Lading before signing
Take photos immediately
Keep all damaged items (don't throw away)
Unpack everything within reasonable time

Filing Timeline

Interstate Moves:

9 months to file claim
120 days for carrier to acknowledge
120 days to deny or settle

Local Moves:

Check state regulations (varies widely)
Typically 30-90 days to file
Faster resolution than interstate

Documentation Needed

Original Bill of Lading
Inventory list with noted exceptions
Photos of damage
Repair estimates or replacement costs
Original receipts when possible

The Real Cost-Benefit Analysis

Let's break down when additional coverage makes sense:

Scenario 1: Local Move, Basic Belongings

Value: $10,000 totalFull Value Protection: $150Third-Party Insurance: $150Recommendation: Full Value Protection is sufficient

Scenario 2: Cross-Country Move, Average Home

Value: $50,000 totalFull Value Protection: $400Third-Party Insurance: $750Recommendation: Combine both for complete coverage

Scenario 3: High-Value/Antique Collection

Value: $150,000+Full Value Protection: Insufficient (caps apply)Third-Party Insurance: $2,000-3,000Recommendation: Third-party insurance essential

Red Flags to Avoid

Watch out for these insurance/valuation scams:

"We're Fully Insured": This means THEY'RE insured (for liability), not your belongings

Extremely Low Quotes: Often exclude adequate valuation coverage

"Insurance Included": Usually means worthless Released Value Protection

No Written Documentation: Legitimate movers provide everything in writing

Pressure to Decline Coverage: Reputable movers explain options without pressure

Smart Protection Strategies

Maximize protection while minimizing costs:

Before Moving Day

Photograph everything valuable
Create detailed inventory with values
Review all insurance policies
Declutter (less stuff = lower insurance costs)
Get appraisals for high-value items

Choosing Coverage

Calculate actual replacement cost
Consider deductibles vs. premiums
Read exclusions carefully
Declare high-value items specifically
Keep coverage documents accessible

During the Move

Supervise loading/unloading
Transport irreplaceable items yourself
Document box conditions
Note any concerns immediately
Keep inventory list handy

Special Situations

Military Moves

Different rules apply for PCS moves
Government provides some coverage
Additional insurance often worthwhile
Special provisions for overseas moves

Corporate Relocations

Company may provide coverage
Understand what's included
Personal items may need separate coverage
Get policy details in writing

International Moves

Marine insurance typically required
Coverage very different from domestic
Work with international moving specialists
Consider "all-risk" policies

Making Your Decision

To determine appropriate coverage:

Calculate Total Value: Be realistic about replacement costs
Assess Risk Tolerance: Can you afford to replace items?
Consider Move Distance: Longer = higher risk
Evaluate Items: Irreplaceable needs more coverage
Check Existing Coverage: Don't double-pay
Read Everything: Understand exclusions and limits

The SOS Moving Advantage

At SOS Moving, we're transparent about valuation coverage options and help you understand exactly what protection you need. We offer:

Clear explanation of coverage options
Assistance with documentation
Professional packing to ensure coverage eligibility
Careful handling to minimize claims
Support through any claim process

We encourage clients to consider additional insurance for valuable items because your peace of mind is our priority.

Conclusion

Protecting your belongings during a move isn't just about choosing the cheapest option or hoping for the best. It's about understanding the real differences between valuation coverage and insurance, honestly assessing your needs, and making informed decisions. Whether you're moving across Los Angeles or across the country, the right coverage turns potential disasters into minor inconveniences. Don't let confusion about insurance versus valuation leave you vulnerable—take time to understand your options and choose protection that matches your belongings' true value.

Ready to move with confidence? Contact our team to discuss your upcoming move and learn about our comprehensive valuation coverage options. At SOS Moving, we're not just moving your belongings—we're protecting your peace of mind.

‍