Moving Insurance vs. Valuation Coverage

The single most important distinction

Federal regulators (FMCSA) require interstate movers to assume some liability for loss and damage. That liability is called valuation coverage. It is not insurance — it's a contractual liability program built into your bill of lading. Real moving insurance is sold by a separate licensed insurance company.

Two consequences:

• If something breaks, you file a claim against the mover under their valuation program. The mover decides what to pay.
• If you want a real insurance product — one regulated by your state's insurance commissioner, with the ability to escalate to a third party — you have to buy that separately.

The two valuation options every interstate mover must offer

Released Value Protection — 60¢ per pound, free

This is the default. If you don't sign anything, this is what you get. The mover's liability is capped at 60 cents per pound, per article. There's no separate charge.

Concrete example: your 50-pound flat-screen TV gets dropped and destroyed. Replacement cost is $1,200. Under Released Value, the mover owes you 50 × $0.60 = $30. The math is brutal, and most consumers don't realize it until the claim comes back.

Released Value is suitable only when you're moving inexpensive items, you can self-insure, or you have a separate insurance product covering transit.

Full Value Protection — replacement value, paid premium

Under Full Value Protection (FVP), the mover is liable for the replacement value of any item lost or damaged. The mover can choose to repair, replace with a like item, or pay the cash equivalent.

FVP is not free. The premium is typically 0.5%–1% of the declared value of your shipment, with a deductible option. A $50,000 shipment might cost $250–$500 in FVP premium. Some movers bundle a minimum declared value (typically $6 per pound times shipment weight) into the base price.

Important nuances:

• You declare the value. Underdeclare and you'll be paid pro-rata. A $50,000 shipment declared at $25,000 gets 50% of replacement value on each claim.
• High-value items must be listed separately. Anything worth more than $100/lb (jewelry, art, rare collectibles, electronics) must be declared item-by-item on a high-value inventory or it's covered under the standard rate cap.
• Deductibles vary. $0, $250, $500 are common — lower deductible, higher premium.

Third-party moving insurance

If valuation coverage doesn't fit your needs, you can buy a separate moving insurance policy from a licensed insurer. Typical providers include MovingInsurance.com, Baker International, and a handful of specialty cargo insurers.

Why third-party insurance can be a better fit:

• Coverage often beats valuation for the same dollar amount — broader perils, higher limits, mold/pest coverage
• Claims go to an insurer, not the mover. The insurer pays you and chases the mover for subrogation. You're not arguing with the same people who broke your stuff.
• State-regulated. If denied, you can complain to your state's insurance commissioner — an independent regulator with real teeth.
• Often covers self-pack boxes. Many movers exclude liability for PBO boxes entirely; insurance can fill that gap.

Premiums are typically 1–2% of declared value depending on coverage limits, deductible, and storage-in-transit duration.

Comparison at a glance

	Released Value	Full Value Protection	Third-Party Insurance
Cost	Free	0.5%–1% of declared value	1%–2% of declared value
Payout per damaged item	$0.60/lb	Replacement value	Replacement or actual cash value
Who decides claims	Mover	Mover	Insurance company
Regulator	FMCSA (federal)	FMCSA (federal)	State insurance commissioner
Covers PBO boxes	Limited	Often excluded	Often included
Storage in transit	Varies	Usually capped at days	Configurable

PBO — the “packed by owner” gotcha

If you packed a box yourself (PBO), most movers will not pay a damage claim on its contents unless there is visible external damage to the box itself. That's because they have no way to verify the box wasn't already broken when picked up.

If you're self-packing valuable items, third-party insurance is often the only way to get coverage on those boxes. Or have the mover pack them — PBM (packed by mover) shifts the liability.

How to file a claim

1. Inspect at delivery. Note any obvious damage on the inventory sheet before the driver leaves. The driver will hand you the descriptive inventory; mark damage with the symbols provided (chip, scratch, gouge, etc.).
2. File within 9 months. Federal law gives you nine months from delivery to file a written claim. Don't wait — the longer you wait, the harder to prove the damage happened in transit.
3. Include documentation. Photos, original purchase receipts, repair estimates, and the inventory sheet showing the item.
4. The mover has 30 days to acknowledge and 120 days to deny, pay, or make a firm settlement offer.
5. If denied or lowballed, escalate. Options: arbitration (required to be offered for claims under $10,000), small claims court, FMCSA complaint, state attorney general.

Practical recommendation

For most household interstate moves:

• Take Full Value Protection — the cost is small relative to total move cost and the protection is meaningful. Don't sign the Released Value waiver unless you've thought it through.
• Inventory high-value items separately. Read the high-value declaration form carefully and list anything over $100/lb.
• Consider third-party insurance if your shipment is high-value, you're self-packing fragile items, or you'll have storage-in-transit longer than the FVP cap.
• Always demand the weight ticket — it's the basis of liability calculations under Released Value.

The takeaway: “The movers are insured” doesn't mean what most consumers think it means. The default coverage will pay $30 for a $1,200 TV. Sign the Full Value Protection upgrade or buy third-party insurance — don't accept the 60¢/pound default by default.

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