Moving Insurance Explained: Valuation Coverage
Interstate movers must offer two levels of liability: Released Value Protection (free, but pays only $0.60 per pound per item) and Full Value Protection (paid, covering repair or replacement). Technically these are 'valuation,' not insurance — for true insurance, buy a separate third-party policy.
Released Value Payout = Item Weight (lbs) × $0.60 | FVP Cost ≈ 1%–3% of Declared Value
Most people assume their belongings are fully insured the moment they hand them to a mover. They are not. Under FMCSA rules, interstate movers provide valuation — a measure of their liability for your goods — not insurance in the traditional sense. The default free option pays a mere $0.60 per pound, which means a 10-pound laptop is worth just $6 if it's destroyed.
This guide explains the difference between Released Value and Full Value Protection, when a separate third-party policy makes sense, and how the claims process works. Understanding the distinction before move day can be the difference between a $6 payout and a full replacement. General consumer guidance is echoed by the American Moving & Storage Association.
What This Means
Your moving estimate above typically includes free Released Value Protection by default. To upgrade to Full Value Protection, expect to add roughly 1%–3% of your goods' declared value to the bill — for $40,000 of belongings, that's about $400–$1,200, sometimes with a deductible to lower the cost. If you own high-value items, compare that against a standalone third-party moving-insurance policy, which may offer broader coverage per dollar.
Valuation Is Not Insurance
This is the most important — and most misunderstood — point. What a mover offers is valuation: a contractual cap on the mover's liability for loss or damage. True insurance is a separate product sold by a licensed insurer and regulated by your state's insurance department.
The FMCSA requires interstate movers to offer two valuation levels by law: Released Value Protection and Full Value Protection. If you want coverage beyond what valuation provides — or you're doing a DIY move where no mover liability exists at all — you need a separate third-party moving-insurance policy. Confirm what you're buying before signing the bill of lading.
Released Value vs Full Value Protection
Every interstate mover must offer these two options. The difference in payout is enormous:
| Feature | Released Value Protection | Full Value Protection |
|---|---|---|
| Cost | Free (default) | ~1%–3% of declared value |
| Payout basis | $0.60 per pound, per item | Repair, replace, or cash value |
| Example: 10 lb laptop lost | $6.00 | Full replacement cost |
| Deductible option | None | Optional, to lower premium |
| Best for | Low-value, lightweight loads | Most households / valuable items |
Released Value is appealing because it's free, but the math is brutal for modern belongings, which are light and expensive. Full Value Protection is the realistic choice for most households, since it pays to repair or replace damaged items at current value rather than by weight.
When to Buy Third-Party Moving Insurance
Separate moving-insurance policies (from independent insurers) can cover more than valuation, sometimes including items you packed yourself or higher per-item limits. Consider it when:
- You own high-value items — fine art, jewelry, antiques, electronics — that exceed comfortable valuation limits.
- You're doing a DIY move, where the mover has no liability and your homeowner's/renter's policy may exclude goods in transit.
- You want lower cost-per-dollar of coverage than the mover's Full Value Protection for a high declared value.
Check first whether your homeowner's or renter's policy covers belongings during a move — coverage varies and is often limited or excluded in transit. A quick call to your insurer can save a redundant purchase or reveal a critical gap.
How the Claims Process Works
If something is lost or damaged, valuation claims follow a federally defined timeline for interstate moves:
- Document before and after. Photograph valuables before the move and inspect everything at delivery.
- Note damage on the inventory. Record loss or damage on the delivery inventory/bill of lading before you sign.
- File within 9 months. You generally have up to 9 months from delivery to file a written claim for an interstate move.
- Mover must respond. The mover has 30 days to acknowledge your claim and 120 days to pay, deny, or make an offer.
- Escalate if needed. Unresolved disputes can go to arbitration; movers must offer a neutral arbitration program under FMCSA rules.
Pre-Move Insurance Checklist
Protect yourself before move day with these steps:
- ☐ Decide between Released Value and Full Value Protection in writing.
- ☐ Declare an accurate total value for your shipment.
- ☐ Ask whether Full Value Protection has a deductible option.
- ☐ Check if your homeowner's/renter's policy covers goods in transit.
- ☐ Get a third-party policy for high-value or DIY moves.
- ☐ Photograph valuables and keep receipts/appraisals.
- ☐ List high-value items separately on the inventory.
- ☐ Confirm the mover's USDOT number at fmcsa.dot.gov.
Frequently Asked Questions
Is moving insurance the same as valuation?
No. What interstate movers offer is valuation — a cap on their liability for your goods — not true insurance. The two FMCSA-required levels are Released Value Protection (free, $0.60 per pound per item) and Full Value Protection (paid, covers repair or replacement). For actual insurance with broader terms, you must buy a separate third-party policy from a licensed insurer regulated by your state.
How much does Full Value Protection cost?
Full Value Protection typically costs about 1% to 3% of your shipment's declared value. For $40,000 of belongings, that's roughly $400–$1,200. Choosing a deductible lowers the premium. In exchange, the mover must repair, replace, or pay the current cash value of any item lost or damaged — far better than the $0.60-per-pound payout under free Released Value Protection.
What does $0.60 per pound mean?
Released Value Protection pays only $0.60 per pound, per item, regardless of the item's actual worth. A 10-pound laptop that's destroyed yields just $6, and a 50-pound TV only $30. Because modern belongings are light but expensive, this default coverage is rarely adequate. It's free, but most households should upgrade to Full Value Protection or buy separate insurance.
Does my homeowner's insurance cover a move?
Sometimes, but coverage for belongings in transit varies widely and is often limited or excluded. Some policies cover goods while being moved, while others only cover them at a fixed location. Call your insurer before the move to confirm whether items are protected in transit and up to what limit. If there's a gap, a third-party moving-insurance policy can fill it.
How long do I have to file a moving damage claim?
For interstate moves, you generally have up to 9 months from the delivery date to file a written claim for loss or damage. The mover must acknowledge your claim within 30 days and pay, deny, or make an offer within 120 days. Note damage on the delivery inventory before signing, and keep photos and receipts to support your claim.