Since the pandemic, Americans have been on the move in record numbers. Whether you are relocating across town for a new start or heading out of state for a job opportunity, there is one box you absolutely cannot forget to check: your personal property coverage and moving insurance.
While you are focused on getting your boxes from Point A to Point B, we want to help you make sure the things inside those boxes arrive safely—or that you are reimbursed if they don’t. Let’s dive into the world of moving insurance and personal property coverage.
Starting with the Basics: Your Existing Policy
Before you hire a truck or sign a contract with a moving company, the first call you should make is to our office (or your current agent). Many clients assume their standard policy covers everything, everywhere, but moving introduces unique risks.
A common question we get is: “What does renters insurance cover?” Generally, a standard renters or homeowners policy provides personal property coverage for your belongings while they are at your residence. The good news is that this coverage often extends to items “off-premises,” meaning your stuff is covered while it is in transit or temporarily stored.
However, there are caveats.
- The “Off-Premises” Limit: Many policies cap the personal property coverage for items away from your home at a certain percentage (often 10%) of your total limit. If you have $50,000 in total coverage, you might only have $5,000 of coverage while your life is packed in a truck.
- The “Perils”: Standard policies typically cover “named perils” like fire or theft. They generally do not cover breakage caused by clumsy movers. If the moving truck is in an accident, you might be covered. If a mover drops your TV on the sidewalk? Likely not.
The Big Question: Does Renters Insurance Cover Moving?
Clients often ask specifically, “Does renters insurance cover moving?” or “Does renters insurance cover damages when moving out?”
The answer is a “qualified yes.” Your policy protects against disasters (fire, theft of the truck), but it usually stops short of covering damage caused by the handling of the items. If you scrape the walls moving out, your liability coverage might kick in for the landlord’s property, but if you drop your own laptop, that is usually on you unless you have specific endorsements for personal property coverage.
This is why specialized insurance for moving is so critical.
The DIY Move: You, a Truck, and Some Pizza for Your Friends
If you are renting a U-Haul and bribing your friends with pizza to help you move, the liability falls squarely on your shoulders.
The Rental Truck Trap: Most people assume their personal auto insurance covers a rental truck. This is rarely true. Most personal auto policies specifically exclude vehicles over a certain weight class (like moving trucks).
- – Liability: Your auto policy might extend liability coverage (damage you cause to others) to the rental, but you must verify this.
- – Physical Damage: Your auto policy almost certainly will NOT cover physical damage to the moving truck itself.
Our Tip: Always purchase the damage waiver from the rental truck company. It is worth the extra few dollars to walk away if you accidentally back into a pole.
The Professional Move: Valuation vs. Insurance
If you are hiring professional movers, the terminology gets tricky. It is important to know that what moving companies offer is technically not “insurance”—it is called “valuation.”
Because movers are not insurance companies, state laws do not dictate their terms or require personal property coverage for your belongings. They offer two main levels of protection:
- Released Value Protection (The “Minimal” Option) This is usually included in your quote at no extra cost, but it is risky. It typically covers your items at 60 cents per pound.
- – The Math: If your 50-inch LED TV weighs 25 pounds and the movers smash it, they are only liable for $15 (25 lbs x $0.60). That won’t even buy the cables for a new TV.
- – The Reality: This coverage is almost useless for high-value, lightweight items like electronics or designer clothes.
- Full Value Protection This is the closest thing to real personal property coverage offered by movers. For an additional cost, the mover agrees to be liable for the replacement value of lost or damaged goods.
- – Note: The mover reserves the right to repair the item first. If it cannot be repaired, they will replace it or offer a cash settlement. Be sure to check the deductible on this option.
Third-Party Moving Insurance
If the mover’s options seem lackluster, or if you have high-value items like fine art, jewelry, or collectibles, you can purchase a “Floater” or specialized third-party moving insurance.
- – Trip Transit Coverage: This covers belongings for fire, theft, and disappearance while in transit or storage.
- – Special Perils: You can often add coverage for breakage of fragile items, which standard policies exclude.
4 Essential Moving Insurance Tips
To ensure your personal property coverage actually pays out when you need it, follow these tips:
- Create an Inventory: You cannot claim what you cannot prove you owned. Before you pack a single box, take a video walk-through of your home. Open drawers and cupboards. This is the ultimate proof of the condition of your items before the move.
- Pack it Right: If you pack your own boxes (PBO – Packed by Owner), movers are often not liable for damage inside the box unless the box itself is crushed. If you have expensive china, it might be worth paying the movers to pack those specific boxes so the liability shifts to them.
- Check the Agreement: Read the fine print on the Bill of Lading. Look for the “valuation” section. If you sign the wrong line, you might be defaulting to the 60-cents-per-pound coverage without realizing it.
- Don’t Forget the Car: If you are shipping your car, call us first. We need to check if your auto policy covers the vehicle while it is being transported on a trailer, or if you need to rely on the shipper’s coverage.
We Are Here to Help You Pack
Moving is a chaotic time, but it is also an exciting new chapter. Don’t let a broken heirloom or a stolen truck ruin the experience.
Whether you need a “Trip Transit” policy, need to update your personal property coverage for a new address, or just want to understand exactly what does renters insurance cover regarding your move, we are here to help.
Take a few minutes to review your moving agreement, then reach out to our team at Ashland Insurance online or give us a call!
541.482.0831 Ashland
541.857.0679 Medford