Moving Insurance Explained: What's Covered and What's Not

One of the most misunderstood aspects of hiring a moving company is what insurance actually covers. Federal law requires all licensed interstate movers to offer two levels of liability protection, and most state-licensed local movers follow the same framework. The first is Released Value Protection, which is free but provides almost no financial security. Under this plan, the mover is liable for only 60 cents per pound per item — meaning if a 30-pound flat-screen TV worth $800 is destroyed, you recover just $18. This is the default coverage that kicks in if you do not actively choose something else, which is why so many customers are shocked when a claim is settled for far less than their item's value.

The second option is Full Value Protection, which requires the mover to repair the item, replace it with a like item, or pay you its current market value. This is the more meaningful protection and is required by interstate law as an option, though movers can charge for it. For local moves within Massachusetts, coverage requirements vary, so ask your mover specifically what Full Value Protection costs and what the deductible is. The cost is typically $0–$100 for a standard local move and may depend on the declared value of your shipment. It is almost always worth purchasing for moves involving high-value items like artwork, antiques, electronics, or musical instruments.

Third-party moving insurance — purchased separately through a specialty insurer — is the most comprehensive option. Companies like Baker International and Moving Insurance (movinginsurance.com) offer policies that cover items regardless of carrier negligence, including damage from improper packing if you packed the items yourself. This is important because standard mover liability typically excludes items packed by the owner. If you have any items worth more than a few hundred dollars that you are packing yourself, a third-party policy is worth evaluating. Prices vary but typically run 1–2% of the declared value of your shipment.

Before your move, document your belongings with photos and video, and keep receipts or appraisals for high-value items. File damage claims promptly — interstate movers are required to acknowledge claims within 30 days and resolve them within 120 days, but local movers are governed by state rules which may differ. If you notice damage at delivery, note it on the Bill of Lading before signing and photograph everything immediately. Regardless of which coverage level you choose, reading the fine print and understanding exclusions is essential. Items of extraordinary value (jewelry, currency, collectibles) are typically excluded entirely from mover liability and require separate insurance.