The Importance of Moving Insurance and Valuation Coverage

Moving isn’t just about getting your belongings from one place to another.

Even with a skilled moving company, there’s always a risk of damage or loss during transit. Accidents, mishandling, or unexpected events can happen at any time. That’s why it’s important to understand the difference between moving insurance and valuation coverage before the move begins. Many people only learn the distinction after something valuable is damaged—and by then, it’s too late to choose the right protection. At Ace Moving & Warehousing, we make sure our customers understand their options before anything is packed or loaded.

The Difference Between Moving Insurance and Valuation Coverage

Moving insurance and valuation coverage are often confused, but they represent two fundamentally different forms of protection. Valuation coverage is not technically insurance; it’s a federally mandated level of liability that movers assume when transporting household goods. The Federal Motor Carrier Safety Administration (FMCSA) requires carriers to provide two valuation options: Released Value Protection and Full Value Protection.

Depending on the contract terms and value declarations, these are automatically included or offered during the moving process.

In contrast, moving insurance is offered through third-party insurance providers. It goes beyond the limited coverage provided by valuation by protecting your belongings against events such as natural disasters, accidents, or theft. Insurance policies can cover the full replacement cost of items or reimburse a predetermined amount.

Since valuation is limited and based on weight, not actual value, many consumers opt for supplemental insurance when moving high-value items such as antiques, electronics, or heirlooms.

Understanding the legal distinctions and financial implications of these options is critical. Valuation limits a mover’s liability and often pays only $0.60 per pound per item under Released Value Protection. A 10-pound TV, for example, may only be covered for $6. Full Value Protection increases liability but can still include deductibles and depreciation.

Review both your valuation options and third-party moving insurance options for complete financial protection, especially for long-distance or high-value moves.

Types of Moving Insurance Available to Consumers

Consumers have three main types of moving-related protection available: Released Value Protection, Full Value Protection, and Third-Party Insurance.

Released Value Protection is the most basic and cost-effective but offers minimal reimbursement—usually $0.60 per pound per article. It is often included in the cost of the move but offers little real protection for valuable items.

Full Value Protection provides more comprehensive coverage, requiring the mover to repair, replace, or offer a cash settlement for any lost or damaged item.

Third-party moving insurance policies are purchased separately and often recommended for interstate moves or shipments involving high-value items.

These policies can cover specific risks that valuation does not, including fire, theft, and natural disasters. Some third-party insurers also offer coverage for items packed by the owner, which is typically excluded under carrier liability agreements. The premiums for this type of coverage vary depending on the declared value, deductible amounts, and distance of the move.

Before selecting a policy, consumers should evaluate whether they are using professional residential moving services, how valuable their household goods are, and whether any items are irreplaceable. Policies may also include specific conditions for claims, so understanding the policy terms is crucial before signing any moving contract.

How the Value of Damaged or Lost Items is Assessed

Valuation assessment during a move depends on the coverage selected at the time of service. Under Released Value Protection, reimbursement is calculated based on weight, not actual market or replacement value. For example, a lightweight laptop may only qualify for a few dollars in compensation due to its low weight, even if its value is over a thousand dollars.

This method disproportionately under-represents the value of high-tech or luxury items and is not ideal for consumers with high-value inventory.

With Full Value Protection, the moving company is liable for the replacement value of goods lost or damaged in transit. This includes either the cost to repair the item, replace it with a similar item, or reimburse the current market value. However, valuation policies often factor in depreciation, which may lower the reimbursement based on the item's age and condition.

For example, a 5-year-old TV may not be eligible for a brand-new replacement under valuation terms.

Claims involving third-party insurance use documentation such as purchase receipts, appraisals, and photographs to assess value. Some insurance companies also request an inventory list signed before the move begins. The customer bears the burden of proof, so it’s critical to maintain accurate records of valuable possessions prior to relocation.

Understanding these variables will better equip individuals to handle disputes and maximize compensation in the event of a loss.

Steps to File a Claim for Moving Damages

If you experience damage or loss during a move, document everything. Take detailed photos of the damaged items, packaging, and boxes. Next, gather any related paperwork: inventory lists, contracts, bills of lading, and receipts. Most moving companies have a formal claims process that must be initiated within a specific timeframe—often 30 to 90 days after delivery.

Filing beyond that window may result in denial, so acting quickly is essential.

Submit your claim in writing to the moving company. This should include your full name, job number, moving date, and detailed issue description. Include images, proof of value, and your preferred resolution (repair, replacement, or compensation). The mover must then acknowledge your claim and provide a written response, typically within 30 days.

Federal law mandates that movers resolve all claims within 120 days, though extensions are possible if additional documentation is needed.

You have additional options if the claim is denied or the settlement offer is inadequate. If applicable, these may include arbitration, small claims court, or pursuing compensation through your third-party insurer. Understanding your rights under FMCSA regulations will help you advocate effectively throughout the process.

Being proactive and thorough with documentation from the beginning increases your likelihood of a successful outcome.

Determining the Right Level of Coverage for Your Belongings

Evaluating the right level of coverage depends on the type, quantity, and value of the belongings you’re moving. Begin with an itemized inventory that includes replacement costs for each item. Consider how much financial risk you will bear if something is damaged or lost. Full Value Protection or third-party insurance may be necessary for households with many fragile or expensive items.

Released Value Protection might suffice for smaller or lower-value moves, though its limitations should be clearly understood.

Consider whether you are packing items yourself or having the movers do it. Many valuation and insurance options only cover damage to items packed by professionals. If you’re handling packing, you may need to seek out specific policies that protect against damage to self-packed goods. Also, factor in any high-risk categories—such as electronics, artwork, or jewelry—that may require special documentation or standalone policies.

Before choosing a coverage level, review the mover's valuation options and supplemental insurance availability. Ask for written details about deductibles, exclusions, and claim limits. Make your decision based on a cost-benefit analysis of premiums versus potential out-of-pocket losses.

For questions about selecting the right level of coverage or understanding what’s best for your household, reach out to Ace Moving & Warehousing.

How Ace Moving & Warehousing Can Help You Navigate Coverage

Planning a move comes with enough challenges—understanding your protection options shouldn’t be one of them. At Ace Moving & Warehousing, we offer a transparent and detailed explanation of valuation coverage and guidance on third-party insurance options for customers needing additional protection. 

Whether you need advice on valuing your belongings, support when documenting items for coverage, or help to understand the filing process, our experienced team has handled it all. We've supported customers through thousands of successful moves—from local relocations to complex interstate transitions—and we've seen firsthand the importance of having the right protections in place.

We’re here to help you select the right coverage, understand the difference between valuation and insurance, assist with claims, and ensure your belongings are safeguarded every step of the way. Trust Ace Moving & Warehousing to provide expertise, support, and service you can rely on when it matters most.

Reach out today.