Moving Insurance & Valuation Guide – Mighty Men Moving
Moving Insurance &
Mover's Valuation
Know your options before moving day. This guide explains the difference between valuation and insurance so you can make the right choice for your peace of mind.
Moving can be a stressful experience. One thing you can do to make it less stressful is to carefully evaluate your options for protecting your household possessions while they're in the custody of your moving company. A wide range of options are available from moving companies, private insurers, and your existing Homeowner's or Renter's insurer — providing varying levels of protection for different causes of loss.
Some Terms You Should Know
Damage & Negligence
Damage, breakage, marring, and other types of loss caused by the mover's or shipper's negligence, carelessness, or accident.
Casualty Loss
A casualty loss — such as fire, windstorm, or similar damage — that may occur through no fault of the moving company and often results in damage to other property.
Insurance Policy Types
All-Risk Policy
Covers any cause of damage or loss unless specifically excluded (e.g., wear and tear, breakage, marring).
Named Peril Policy
Covers only the causes specifically listed in the policy — such as fire, lightning, windstorm, etc.
Actual Cash Value vs. Replacement Cost
Actual Cash Value
The insurer pays to repair or replace covered property up to today's price minus depreciation — the reduction in value due to age or condition.
Replacement Cost Coverage
The item is insured for the full amount of today's replacement cost without subtracting depreciation.
Valuation Is NOT Insurance
Moving companies are not insurance companies. Valuation is the predetermined limit of liability a mover has for your property while in their possession — it is specified in your moving documents. For casualty-type losses, you need a separate insurance policy.
Mover's Valuation Options
For interstate moves, the Federal Motor Carrier Safety Administration (FMCSA) requires that at least two valuation options be made available:
Released Valuation
No Added CostThe standard protection a moving company must provide at no additional charge. Provides protection at 60 cents per pound per item.
Example:
A 40-lb TV damaged during the move → maximum liability = $24. A 10,000-lb shipment → total valuation = $6,000.
Full Value Protection
RecommendedAvailable at an additional charge. The FMCSA mandates a base minimum of $6.00 per pound (or $6,000, whichever is greater). The per-pound rate applies to the entire shipment, not per item.
Example:
A 40-lb TV → covered at its actual replacement cost, not limited to $240. A 10,000-lb shipment at $6/lb → total valuation = $60,000.
Deductible options are typically available: No Deductible, $250, or $500 — higher deductibles lower the cost of protection.
Declared Value
You select a cost per pound (e.g., $6, $8, or $10) that represents the value of your possessions. That rate is multiplied by the total weight of your goods.
Example:
$8/lb × 10,000 lbs = $80,000 total valuation. Each item is subject to depreciation (actual cash value), but the limit is not applied per item.
Assessed Value / Lump Sum
Based on value, not weight. You specify the total value of goods being shipped (e.g., $25,000), which becomes the mover's maximum liability. A good option if you're moving many valuable lightweight items.
What Valuation Won't Cover
Mover's valuation protection does not pay for:
Items in boxes not packed by your movers (unless the exterior is obviously damaged)
Casualty-type losses — fire, windstorm, hail — that are outside the mover's control
Items marked as already damaged on your inventory list
Items placed in a self-storage facility not under the mover's control
Damage caused by mold or mildew
Loss to pairs and sets unless all items in the pair or set are damaged
Any loss or damage not resulting from the negligence of the mover
Insurance Policy Options
Homeowner's Insurance
Most Homeowner's policies cover belongings up to policy limits at your residence. Property temporarily off-premises is typically restricted to 10% of your personal property limit. However, if you're moving all possessions from one residence to another with the same insurer, you may have grounds to argue against the 10% cap.
Check your policy for:
- Restrictions for property in transit or in the mover's care, custody, or control
- Limits for special items — jewelry, cash, fine art, business property
- Whether you have a "floater" policy on specific valuables
- Actual cash value vs. replacement cost coverage on personal property
- Storage facility restrictions or exclusions
Renter's Insurance
Renter's policies can sometimes be less restrictive than Homeowner's policies. Some better Renter's policies provide all-risk coverage anywhere in the world and are not subject to the 10% off-premises limitation. Some may even provide special coverage while you're moving. Shop around well in advance of your move.
Private Moving Insurance (Relocation Insurance)
Private moving insurance is available from a limited number of specialty insurers. Two common options:
Full Replacement – Valued Inventory
List every item you want protected and declare the replacement cost of each. Items not listed are not covered.
Full Replacement – Lump Sum
Declare a total value for all possessions being shipped. Only items costing more than $500 to replace need to be individually listed.
Arbitration Program
An arbitration program is available to help consumers resolve disputed claims on interstate household goods shipments. Ask your mover about their arbitration process before signing any documents.
Questions About Your Move?
We're happy to walk you through your valuation options and help you understand what protection is right for your move. Reach out for a free estimate.