When movers damage or lose your belongings, the amount you recover depends entirely on which "valuation" option you chose at booking — not on what your stuff is actually worth. Most customers don't realize this until the claim check arrives for $18 on a shattered flat-screen TV. Understanding the difference between released liability, full value protection, and standalone moving insurance before you sign is the single most important financial decision in your entire move.
What is "valuation" — and why it's not the same as insurance
Federal law (49 CFR Part 375, administered by the FMCSA) requires every licensed interstate mover to offer customers at least two levels of liability for their goods. The industry calls this valuation — the mover's legal exposure — not insurance. Insurance is a separate product purchased from a third-party underwriter.
The distinction matters because:
- Valuation limits what the mover owes you under federal or state law.
- Moving insurance (a policy from an insurer) covers losses up to the policy limit, regardless of fault.
- Your homeowner's or renter's policy may extend some coverage to goods in transit — but most standard policies cap off-premises personal property coverage and require a separate rider for high-value items. Confirm with your insurer before moving day.
The three coverage types every mover must understand
1. Released liability (a.k.a. "basic carrier liability")
This is the default option — and it offers almost no real protection.
| Detail | What it means in practice |
|---|---|
| Rate | $0.60 per pound per article (federal interstate minimum) |
| Cost to you | Free — included automatically |
| Example payout | 50-lb flatscreen TV: $30 maximum |
| Who offers it | Every FMCSA-licensed interstate mover (required by law) |
| State moves | State minimums vary; some match federal, others are lower |
We've seen customers handed a $47 check for a destroyed $2,400 antique desk. That's released liability doing exactly what it's designed to do — protect the mover, not you.
2. Full value protection (FVP)
Full value protection is the higher tier that movers are required to offer under federal rules. It's the closest thing to real coverage the mover itself provides.
| Detail | What it means in practice |
|---|---|
| Obligation | Mover must repair, replace, or pay current market value |
| Cost to you | Typically $8–$15 per $1,000 of declared value (varies by mover) |
| Deductible | Often $0–$300; higher deductibles lower the premium |
| Declared value minimum | Federally, movers may set a minimum of $6 per pound of total shipment weight |
| Exclusions | Items packed by owner (PBO boxes) are often excluded from FVP claims |
On a 7,500-lb household shipment, the federal minimum declared value floor is $45,000. If your belongings are worth more — and for most families they are — you need to declare the actual higher value and pay the corresponding premium.
Pro tip from 35 years in this business: Always inventory high-value items separately in writing before the move. Movers can challenge claims for items not documented at pickup.
3. Third-party moving insurance
Standalone policies from specialty insurers (not the mover) fill the gaps that FVP leaves behind.
| Feature | Full Value Protection | Third-Party Policy |
|---|---|---|
| Provider | The mover | Independent insurer |
| Covers PBO boxes | Usually no | Depends on policy |
| Covers total loss | Yes | Yes |
| Covers Acts of God | No | Often yes |
| Covers delays | No | Some policies yes |
| Covers high-value items | Up to declared value | Up to scheduled value |
| Dispute resolution | Mover's claims process | Independent insurer |
Third-party policies typically run 1%–3% of total declared value for all-risk coverage. For a $50,000 declared shipment, expect to pay $500–$1,500 — meaningful, but often worth it for long-distance or cross-country moves where your goods may change hands multiple times.
How to decide which option is right for you
Work through these four questions before you book:
-
What is the total replacement value of everything you're moving? Add it up. Include electronics, jewelry, instruments, and art — not just furniture. Most families moving a 3-bedroom home are moving $60,000–$150,000 worth of goods.
-
Are you packing boxes yourself? PBO exclusions are the #1 reason full value protection claims get denied. If you're self-packing, strongly consider a third-party all-risk policy that covers PBO boxes, or let the mover pack everything that matters.
-
Does your homeowner's or renter's policy cover goods in transit? Call your agent and ask specifically about "personal property away from premises" and whether a moving endorsement is available. Some policies cover up to 10% of dwelling coverage for off-premises losses — which may be enough for a local move.
-
How far are you moving and how many carriers are involved? For a cross-country move, your shipment may be loaded, warehoused, and reloaded by different crews. More handoffs = more exposure. Third-party all-risk coverage makes the most sense here.
While you're reading
Skip the research — let Robert match you with movers.
Get real quotes from vetted movers in your area, free.
What the claims process actually looks like
Even with full value protection, getting paid requires work on your end. Here's the typical sequence for an interstate claim:
- Note damage on the Bill of Lading at delivery — write "damaged" next to any item before the driver leaves. Signing a clean delivery receipt without notation can waive your rights.
- File written notice within 9 months of delivery — this is the federal deadline for interstate moves (49 CFR 370.3). Some movers require notice within 30 days; check your contract.
- Submit a detailed inventory with replacement values and photos.
- The mover has 30 days to acknowledge the claim and 120 days to resolve it under federal rules — or to deny it with a written explanation.
If your claim is denied or underpaid, you can pursue arbitration. FMCSA-registered movers are required to offer a neutral arbitration program for disputes involving loss or damage under $10,000 (and may offer it for higher amounts). Our full walkthrough on how to file a claim when movers damage your stuff covers every step in detail.
A note on valuation for intrastate (in-state) moves
FMCSA rules only govern interstate moves. For moves entirely within one state, valuation rules are set by the state's DOT or Public Utilities Commission. Requirements vary widely:
- Some states mirror the federal 60-cent minimum.
- Others require higher minimums or mandate that movers offer FVP-equivalent coverage.
- A handful of states have no mandated minimum at all.
If you're moving locally — say, within Chicago, Atlanta, or Los Angeles — review your state's rules or ask your mover directly what their intrastate liability policy is. You can browse licensed movers in your state on our state movers directory to find companies that disclose their coverage terms upfront.
The fast-reference summary table
| Coverage type | Who provides it | Typical cost | Best for |
|---|---|---|---|
| Released liability | Mover | Free | Almost nobody — avoid for anything valuable |
| Full value protection | Mover | ~$8–$15 per $1,000 declared | Most local and regional moves |
| Third-party all-risk | Insurer | ~1%–3% of declared value | Long-distance, high-value goods, self-packed boxes |
| Homeowner's/renter's rider | Your insurer | Varies | Supplemental gap coverage |
Before you find movers and start getting quotes, decide which coverage tier fits your move — and ask each mover in writing how they handle FVP claims and PBO exclusions. That answer tells you a lot about how they'll treat you if something goes wrong.
For more on what to watch for when comparing quotes, see our guide on how to read a moving quote and spot red flags before you sign.
Frequently asked questions
Does homeowner's insurance cover my belongings during a move?
In many cases, a standard homeowner's or renter's policy extends some coverage to personal property away from the home — often up to 10% of your dwelling coverage limit — but exclusions, deductibles, and sub-limits can significantly reduce what you actually recover. You'll typically need to file a claim through your own insurer (paying your deductible) and then subrogate against the mover. Call your agent before moving day and ask specifically about goods-in-transit coverage.
What does "declared value" mean on a moving contract?
Declared value is the total dollar amount you assign to your entire shipment when booking the move. It sets the ceiling for what a mover owes you under full value protection. If you declare $40,000 but your belongings are worth $90,000, the mover's maximum liability is $40,000. Always declare the actual replacement value of everything you're moving.
Can a mover deny my full value protection claim if I packed the boxes myself?
Yes — this is one of the most common reasons FVP claims are denied. Most movers exclude "PBO" (packed by owner) boxes from full value protection because they can't verify that items were packed adequately. If you're self-packing, consider a third-party all-risk policy that explicitly covers PBO boxes, or document the contents and condition of each box with photos before sealing.
What is the federal deadline for filing a moving damage claim?
For interstate moves governed by FMCSA rules, you have 9 months from the delivery date to file a written claim (49 CFR 370.3). However, many movers contractually shorten this window — some to as little as 30 or 60 days — and courts have generally upheld those shorter periods when disclosed in the contract. Read your Bill of Lading carefully and file as soon as you discover damage.
Is "full value protection" the same as moving insurance?
No. Full value protection is the mover's contractual liability — it's offered by the mover, processed through the mover's claims department, and limited to the terms in your contract. Moving insurance is a policy issued by a licensed insurer, separate from the mover, and governed by insurance law. For high-value shipments or long-distance moves, many customers carry both.
How do I find movers who are transparent about their valuation and coverage terms?
Ask any mover you're considering to provide their valuation options in writing before you sign — a reputable company will do this without hesitation. You can also read how other customers describe the claims process in verified reviews. Start your search with our verified mover reviews to find companies with documented, positive claims experiences.
Tagged
