Every licensed US mover is required by federal law to offer you at least two levels of liability coverage before you sign anything — and you can supplement either one with a third-party insurance policy. The three coverage types are released liability (basic carrier liability), full value protection (declared value), and third-party moving insurance. Understanding exactly what each pays — and what it doesn't — is the single most important thing you can do before moving day.
We've helped coordinate thousands of moves over 35 years. We've seen customers devastated by a $3,000 claim that paid out $18. Here's what you actually need to know.
Why "moving insurance" is actually a misnomer
Technically, movers don't sell insurance — they offer valuation coverage, which is a contractual limit on their liability. It's regulated under federal law (49 U.S.C. § 14706, known as the Carmack Amendment) for interstate moves, and by individual state utility commissions or departments of transportation for intrastate moves.
The word "insurance" gets used loosely, but the distinction matters: if a mover damages your items, their valuation coverage determines what they owe you. If you want actual insurance — a policy with its own claims process independent of the mover — you buy that separately through a third-party provider. More on that below.
For a deeper look at how valuation and insurance interact, see our guide on moving valuation vs. insurance coverage.
The 3 moving coverage types, compared
| Coverage Type | Cost to You | Pays Out | Best For |
|---|---|---|---|
| Released liability (basic) | Free | $0.60/lb per item | Almost no one — it's nearly worthless |
| Full value protection | Typically $100–$600+ | Repair, replacement, or cash value | Most local and long-distance moves |
| Third-party moving insurance | Varies by value; often 1–5% of declared value | Agreed or appraised value, depending on policy | High-value items, antiques, irreplaceable goods |
Coverage type 1: Released liability (basic carrier liability)
What it is: This is the free, default coverage that every federally licensed interstate mover must offer. It pays $0.60 per pound per item — that's it. A 10-pound laptop that costs $1,500 to replace would pay out exactly $6.00.
Federal requirement: Under FMCSA rules (49 CFR Part 375), movers must offer this option and have you acknowledge it in writing. If you sign without upgrading, this is what you've got.
The reality: In our experience, very few people understand what they've agreed to until something breaks. A 50-pound flat-screen TV? The mover owes you $30. A 200-pound antique dresser? $120. Released liability is essentially a legal shield for the mover, not meaningful protection for you.
When it makes sense: Honestly, almost never — unless every single item you're moving is cheap, easily replaceable, and you'd rather self-insure than pay for an upgrade.
Coverage type 2: Full value protection (declared value coverage)
What it is: This is the upgraded option every licensed interstate mover must also offer. Under full value protection, if the mover loses or damages an item, they must either:
- Repair it to its original condition,
- Replace it with a like item, or
- Pay you the current market replacement cost — not a depreciated amount.
What it costs: For interstate moves, FMCSA rules set a minimum declared value of $6.00 per pound times the total shipment weight. So a 5,000-lb shipment has a minimum declared value of $30,000. The premium typically runs $100–$600 for most household moves, though it varies by mover and declared value level. Some movers offer higher deductible options (commonly $250 or $500) that reduce the premium.
Important: You can — and should — declare a higher value than the minimum if you have items worth more. The mover can't limit your declared value below that federal minimum, but they can offer tiered pricing above it.
What it doesn't cover: Full value protection typically excludes items you packed yourself (PBO — packed by owner), high-value items not listed on a high-value inventory form, and items damaged due to inherent vice (e.g., pressed-wood furniture that can't survive a move). Read your carrier's specific exclusions carefully.
For intrastate moves: State rules vary. Some states follow Carmack Amendment principles; others have their own liability frameworks. Check with your state's PUC or DOT, or ask your mover directly what governs your move.
Before you book, make sure you understand how your mover handles claims — our post on how to file a moving damage claim walks through the full process.
Coverage type 3: Third-party moving insurance
What it is: A standalone insurance policy purchased from a company that is entirely separate from your mover. Unlike valuation coverage, this is regulated as actual insurance and must be issued by a licensed insurance carrier in your state.
What it covers: Policies vary, but the best ones cover:
- All-risk coverage (damage from any cause, not just mover negligence)
- Items you packed yourself
- High-value or irreplaceable items at agreed or appraised value
- Total loss events (fire, flood, vehicle accident)
What it costs: Expect to pay roughly 1–5% of the declared value of your shipment, depending on the insurer, coverage breadth, and deductible. For a shipment you value at $50,000, that's $500–$2,500.
Who needs it: Anyone moving art, antiques, musical instruments, jewelry, or electronics worth more than a few thousand dollars should seriously consider this. Also consider it if you're doing a long-distance move where items may sit in transit or storage for days or weeks.
How to buy it: Several specialty carriers write moving insurance. Your homeowner's or renter's insurance policy may also extend coverage during a move — call your insurer before moving day and ask specifically about "property in transit" and "storage" coverage.
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How to choose the right coverage for your move
Ask yourself three questions:
- What is the total replacement value of everything I'm moving? Add it up room by room. Most people are shocked how fast it reaches $30,000–$75,000 for a full household.
- Do I have irreplaceable items? Art, antiques, heirlooms, and custom furniture can't be "replaced" at market value — they need agreed-value or appraisal-based coverage.
- Am I packing any boxes myself? PBO exclusions are real. If your mover doesn't pack it, full value protection often won't cover it if something inside breaks.
Our default recommendation: Upgrade to full value protection on every move. For items worth more than $5,000 individually, or any item that's irreplaceable, add a third-party policy or a rider to your homeowner's/renter's policy. The cost is almost always worth it.
You can also browse verified mover reviews to find companies that are transparent about their valuation options — how a mover explains coverage upfront tells you a lot about how they'll handle a claim later.
What to do before you sign anything
- Ask for the mover's tariff. Licensed interstate movers must have a published tariff that includes their valuation options and rates.
- Get the coverage terms in writing on your bill of lading before the truck loads.
- Complete a high-value inventory form if any single item is worth more than $100 per pound. Movers can limit liability for high-value items not listed on this form.
- Photograph everything. Date-stamped photos of your belongings before loading are your best evidence if you need to file a claim.
- Check your existing homeowner's or renter's policy — you may already have partial coverage you can count on.
To find licensed, insured movers who clearly disclose their coverage options, find movers in your area or browse movers by state.
Frequently asked questions
Is moving insurance required by law?
No — purchasing upgraded coverage is not required. However, FMCSA regulations require all licensed interstate movers to offer you both released liability and full value protection in writing before your move. You must acknowledge your choice in writing. Choosing released liability (the free option) is legal, but it provides almost no real protection.
Does my homeowner's or renter's insurance cover moving?
Sometimes, partially. Many policies extend coverage to "property in transit" or "temporary storage," but the coverage limits, deductibles, and exclusions vary widely by insurer. Call your agent before moving day and ask specifically about transit coverage and whether a moving company's negligence is a covered peril. Don't assume — confirm in writing.
What does "declared value" mean on a moving contract?
Declared value is the total dollar amount you assign to your entire shipment. It sets the ceiling of the mover's liability under full value protection. If you declare $30,000 and your actual goods are worth $60,000, you're underinsured — the mover's obligation is capped at your declared amount. Always declare the true replacement value of everything you're moving.
What's excluded from full value protection?
Most carriers exclude: items you packed yourself (PBO), items on a high-value inventory form that you didn't declare, items damaged due to inherent vice or pre-existing damage, and perishables. Some also exclude particle-board or pressed-wood furniture that can't survive normal handling. Read your carrier's specific exclusion list — it's part of their tariff and they must provide it on request.
Can a mover refuse to pay a claim under full value protection?
A mover can dispute a claim if they believe the damage was caused by something outside their liability (e.g., PBO packing, pre-existing damage, inherent vice). Under FMCSA rules, movers must acknowledge receipt of a claim within 30 days and resolve or make a settlement offer within 120 days. If a claim is denied unfairly, you can file a complaint with the FMCSA at fmcsa.dot.gov or pursue arbitration — licensed carriers are required to participate in a neutral arbitration program for claims under $10,000.
Is third-party moving insurance worth the cost?
For most full-household moves — especially long-distance — yes. The peace of mind alone is worth the 1–3% premium if you have items you genuinely can't afford to replace. For a studio move with basic furniture worth under $5,000, full value protection through the mover is usually sufficient. The calculus changes the moment you have anything irreplaceable in the truck.
Ready to find a mover who's upfront about coverage from the first conversation? Browse licensed movers on Majestic Moving Companies — and if you have questions along the way, our AI assistant Robert is here to help you compare options and understand what you're signing.
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