Do you need moving insurance?
Most movers offer basic moving company insurance, but that might not suffice and it might be good to pay for additional coverage.
According to the U.S. Census Bureau, the average American moves over 11 times in their lifetime. While moving insurance adds to the initial cost, skipping it could be a costly gamble if your belongings are damaged or lost during a move.
Moving insurance protects your belongings, whether you hire movers or do it yourself. Most moving companies offer:
Released-value protection. This basic protection is standard when hiring a moving company. It doesn’t add to your cost but is limited and offers minimal compensation ($0.60/pound) for anything damaged or lost.
Full-value protection. This option covers repair or replacement costs, and the amount you pay is typically calculated based on 1% to 2% of your belongings’ estimated value.
You can also purchase separate moving insurance from third-party insurers for even more comprehensive coverage. Expect to pay between 1% and 5% of your belongings’ value for this additional protection.
Recommended reading from Yahoo: Everything you need to know about moving insurance
Should I buy moving insurance?
You’re not required by law to purchase additional moving insurance, but depending on your circumstances and comfort level with leaving things to chance, it might not be a bad idea. The following cautionary tale is one example of why paying extra for insurance can be a wise move.
“My husband and I used movers for a Pennsylvania to Los Angeles move in 2012 for my husband’s job at the time,” said Maya Polack, who was in her late 20s at the time. “We did have [released-value] insurance, but it was so weird because it paid on weight. In the end, we hardly got anything back, even though they left the mattress outside in the rain, and all the heavy boxes were put on top of the fragile boxes, crushing everything inside.”
Full coverage may give you more peace of mind if you move long-distance or between states and have valuable items. Released-value protection might suffice if you move locally or don’t have many valuable items.
You should check your renter’s or homeowner’s policy first, as it may not cover mover-caused damages. Also, before deciding which insurance to buy, take a complete inventory of your possessions to assess their value. You’ll want to insure 100% of the value so you have enough reimbursement to replace what’s lost in the event of a catastrophe.
Leaning toward not purchasing moving insurance?
We don’t want to scare anyone into purchasing additional insurance and increasing the cost of their move, especially since, according to Forbes research, the expense to move locally ranges between $300 and $6,900, whereas relocating long distance can cost up to $17,000.
But that number pales in comparison to the expense of replacing everything you own if disaster strikes in the middle of a move.
Take it from Liz Krinock, a mother of two elementary-aged children. She’s married to a government employee whose job requires frequent relocations. Her husband’s State Department assignment changed in 2021, necessitating a move from Chicago to a small town in West Virginia so he could commute more easily to Washington, D.C.
“We were no strangers to moving,” Krinock said. “My husband’s job requires — and pays for — frequent relocations. In fact, my husband and I often joked that this move in the summer of 2021 was our ‘lucky 13th’ move.”
While the Krinocks waited in West Virginia for their belongings, they got a phone call. The movers carrying their household goods had been involved in an accident on a Pennsylvania interstate. The insurance company had assessed the contents and deemed it “total destruction.”
“The reality of total destruction didn’t hit my husband and me until we stepped into the warehouse holding the wreckage. Our belongings had been crushed when the moving truck took a curve too quickly and tumbled down a hill. While the drivers were miraculously unscathed,” she said, “our belongings were not. The aluminum tore off of the box truck, scattering our stuff. Gas and oil leaked from the truck onto everything.”
Stepping into the warehouse and seeing everything spread out in smelly, dirty piles was the first sobering moment. The second was when they learned about their moving company’s insurance policy.
“It was peanuts,” Krinock said. “And shame on us for not understanding that earlier when we could’ve done something about it. Since the moving contract was between my husband’s government job and the company, we barely read the legal paperwork.”
Krinock said they simply assumed the contract included as much insurance as they’d need or that their homeowner’s or renter’s insurance would suffice. They assumed wrong. “We got the insurance cap which was $30,000 but nowhere near enough to replace all of our things, which renter’s insurance assessed at $200,000,” she said. “I will not move again without supplemental moving insurance.” The family moved for the fourth time in 2022 from West Virginia to their current post, Managua, Nicaragua, where Krinock and her husband both work at the U.S. Embassy. That time, they purchased additional insurance.
Sometimes, when things go awry, but you’re not protected by additional insurance, you can recoup more of the expense, but it’s a huge headache regardless. There’s no guarantee the moving company will work with you.
Jenna Velazquez works in the food manufacturing industry. In the early 2000s, she and her family relocated from Pennsylvania to Omaha, Nebraska, for her job using a moving company her then-employer recommended. Velazquez had a one-bedroom, one-bath apartment, so they moved a relatively small amount of goods. She got a quote, signed the contract, and the movers picked up their belongings. So far, so good … then things took a turn for the worse.
“They gave us a date range for when our furniture would arrive,” she said. “I checked in with our contact person after the first week and was told our furniture hadn’t left Pennsylvania yet. I called the day before our furniture was supposed to be delivered and learned it was still in Pennsylvania.”
Velazquez says she eventually threatened to get a lawyer and take the moving company to court before they shipped the family’s stuff. Then things got worse. “Over a third of the items they shipped were broken,” she said.
In the end, the family paid only $500 of the quoted $5,000 they expected to pay for the move, to help compensate for their losses. “I wish we were given moving insurance as an option to help us with that whole debacle instead of being forced to do all the negotiating myself,” she said.
“I’m originally from Pennsylvania,” Velazquez said, “and when I was laid off from my company in Nebraska, we moved back to Summit Hill, Penn., where I live now. When we returned, we rented a UHaul and moved ourselves — and did not purchase moving insurance.”
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Hiring reputable movers lowers your risk
Mitigating your risk starts with choosing the right mover. A reputable company known for careful handling can ease your worries about damage and make the decision about additional insurance less stressful. Here are some tips for choosing the right moving company for your needs:
Get referrals: Ask family, friends, colleagues, and even neighbors for recommendations on companies they’ve trusted, used, and been satisfied by.
Read reviews: Online reviews and the company’s response to them reveal how they operate and handle customer service, especially unhappy clients.
Compare quotes: Get quotes from multiple moving companies to compare prices and services.
Verify credentials: Ensure the company’s legitimacy by requesting proof of license and insurance coverage.
Understand costs: Get a clear, itemized breakdown of pricing and potential additional fees to help you stay on budget.
Book early: Start looking for movers at least two months before you move, especially during peak seasons.
Why paying for moving insurance is a good idea
Basic coverage comes standard with most moving companies, but it might not be enough. Consider the value of your belongings, the distance they're traveling, and the risk of damage or loss. Local moves with fewer valuables might be fine with basic protection, but long-distance journeys or moves with expensive items benefit from extra insurance.
The way a mover packs your stuff can increase the risk of damage, making additional insurance more important. On the other hand, a solo short-distance move with inexpensive belongings might not necessitate insurance.
Bottom line: Moving insurance offers valuable peace of mind. While full-value coverage from movers helps, a third-party policy can provide even more protection. Check your existing homeowner's or renter's insurance, as it might cover moving or assist you in obtaining a separate policy.
Considering these factors and evaluating your existing insurance options can help you make an informed decision about whether moving insurance is right for you.
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