Is Moving Insurance Worth It?

Nick Durante
by Nick Durante
Credit: Shutterstock / Vitpho

Moving comes with many costs, stresses, and responsibilities that are hard to navigate. Naturally, you can become worried that your belongings will be lost, stolen, damaged, or broken along the way. Is moving insurance worth it?

Moving insurance is worth it because it guarantees compensation for broken, lost, and stolen items. Professional movers offer released-value coverage for free, which covers $.60 per pound of damaged and lost items. Full-value protection is the best option, as it compensates customers for damaged items, or they may replace them.

You also have the option to purchase third-party insurance coverage. That is a great option if you are moving to an area that is prone to natural disasters. Natural disasters aren’t always covered by moving companies, even with full-value coverage. Follow along as we explore everything you must know about moving insurance. 


Do You Need Moving Insurance?

Moving insurance is a worthy investment, as you must trust strangers to handle your belongings. Luckily, moving companies provide complementary insurance that covers a small portion of your items’ value. However, many people are wonder whether or not premium insurance is worth it.

Without premium insurance, you must pay most of the cost to repair or replace your belongings. 


How Many Types Of Moving Insurance Are There?

Depending on the company, there are typically 2 to 3 types of moving insurance, such as:


Third-Party Coverage 

Third-party coverage is moving insurance that isn’t provided by the moving company. It comes at a premium price, but it’s worth it if you don’t trust your moving company. For example, many moving companies only cover damaged items if the damage is within their control.

This includes dropped items, damage during the drive, and theft from the truck. However, it doesn’t typically include unavoidable natural disasters. Third-party coverage is only worth it if you’re concerned that your moving company doesn’t offer comprehensive enough insurance. 


Released-Value Insurance

Released-value insurance is the most basic type of coverage that moving companies offer. This is a complementary insurance option that every moving company offers. Released-value coverage ensures that you can get up to $0.60 per pound of damaged and destroyed items. 

While it’s better than nothing, this doesn’t help much if you have valuable belongings. For example, you would get compensated $3 for a precious piece of art worth $2,000 that weighs 5 pounds that gets damaged. It’s nice that moving companies offer this, but it isn’t helpful when it comes to valuable items. 


Full-Value Coverage

Full-value coverage is the premium insurance option that moving companies offer. Moving companies must compensate you for lost, damaged, or broken items based on what they are worth with this plan. This is the best option, as it guarantees that you won’t have to replace these broken or lost items out of pocket. 

Make sure to ask your moving company to explain what full-value coverage includes during the consultation process. That said, it’s not complementary, so it adds to your overall moving costs. Many people consider this cost worth it, especially for a long-distance move. 


Moving Insurance Cost Factors

The cost of your moving insurance depends on everything from the plan you choose to the value of your items. Moving companies typically charge up to 5% of the value of your belongings if you choose a released-value plan. Otherwise, they may charge as little as 1%, depending on the company you hire.

This can quickly add up if you have lots of belongings, especially if they’re valuable. For example, you may pay a high premium if you have a 3 to 5-bedroom house full of furniture. High-end art, furniture, and decorations naturally are pricier than discounted items and furniture.

You may have to spend thousands of dollars to invest in moving insurance. The moving company’s consultant will evaluate the value of your belongings. This is the most important part of the moving process, as it determines how much your move will cost. 


Is Insurance For A Moving Truck Worth It?

It’s worth it to get insurance when you rent a moving truck, such as a U-Haul. Much like moving companies, moving truck rental companies offer multiple insurance options. Basic moving truck rental insurance costs as little as $15 to $30 per day. 

That said, it depends on the plan, company, and supplemental coverage you request. For example, some truck rental services offer additional plans for roadside assistance. That isn’t worth it for everyone, but it’s a great idea for long-distance moves.

This is especially true if you’ve never driven a moving truck and are nervous about it. Basic moving truck rental insurance covers the cost of damaged items. However, you must read the contract, as it may not cover antiques, jewelry, and some high-value items.  


Does My Car Insurance Cover A Moving Truck?

The average car insurance policy doesn’t cover the cost of moving truck insurance. However, it’s worth the cost to contact your auto insurance provider to see if they will cover your moving truck rental. If not, then you are responsible for damaged items and damage to the truck if you don’t purchase coverage. 


Summing It Up

Moving insurance is worth it because it is the only way to get compensated if the movers lose or damage your belongings. Full-value coverage is the best option, as it covers the full value of lost and damaged items. However, you may want to purchase third-party coverage, as that covers more risk factors, such as natural disasters. 


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Nick Durante
Nick Durante

Nick Durante is a professional writer with a primary focus on home improvement. When he is not writing about home improvement or taking on projects around the house, he likes to read and create art. He is always looking towards the newest trends in home improvement.

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