Moving Tips

Do I Need Moving Insurance When Moving Out?

May 18, 2022

Moving insurance will help ensure that your belongings are covered in the event that the items are either stolen or damaged. The following article will help you make your final decision on whether or not to purchase movers insurance. You will understand what movers insurance is, the three main types, and how it may be worth the cost in your situation.

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What Is Movers Insurance?

Moving insurance covers your valuables from damage or theft during a move. If you purchase movers insurance for your move-out, you’ll be able to get reimbursed for any damage done to your belongings during any point of the moving process.

Types of Moving Insurance Coverage

Because moving can be done differently per household, there are multiple insurance policies to consider when moving out.

Third-Party Moving Coverage

Homeowners' insurance companies like State Farm, Allstate, and Progressive will offer a form of moving coverage. This type of coverage can be either added to your existing policy or offered separately.

Third-party moving insurance companies cover:

  • Natural disasters
  • Mold and mildew
  • Mechanical or electrical issues

That said, third-party moving coverage is often limited. While theft is covered, damage to any belongings outside of the policy terms will not be fixed or covered.

These policies usually have a list of expected “perils” that could happen during a move. So, if your movers accidentally drop your flatscreen in the driveway, there’s a chance you won’t be able to get the damage covered.

Full Value Protection

If you decide to hire a moving company when moving, they will offer full value protection. Just as the valuation name indicates, it covers the majority of costs to damages that can occur while moving.

Full value protection insurance valuations cover:

  • Replacing an item
  • Repairing an item
  • Offering money for repair or replacement of an item

This insurance valuation can be very expensive. Because they offer full value coverage, their rates are on the higher end.

Moving companies will charge coverage based on the weight of total items. With full value protection, they will charge roughly $4 to $6 per pound or 1% to 2% of property value. This can often make the final coverage a bit ambiguous.

When purchasing this type of insurance, make sure to read if there are any coverage limitations, such as natural disasters.

Released Value Protection

This valuation is automatically offered when you hire a moving company, and you do not need to pay any extra fees. However, your belongings will only be compensated at a rate of $0.60 per pound. To put the compensation rate into perspective, if your movers drop your $1,000 flatscreen, they will reimburse you roughly $21 to buy a new one.

It is always a good idea to request released value protection for your belongings. Especially, if you are a first-time mover. Belongings can always be at risk of theft or damage during a move, regardless of whichever moving company you choose to use.

Rental Truck Protection

When moving, if you decide that you can package and store your belongings yourself, you may be interested in using a rental truck for transportation of larger items like furniture.

Rental truck protection is a specific type of coverage that can only be purchased through a rental truck company. Once you decide on the best moving truck rental for you, you will be able to get a quote for how much coverage your belongings will need.

This is often the most preferred option when moving. Utilizing a third party or opting for a full value protection plan through a moving company can get expensive quickly.

Is Moving Insurance Worth the Cost?

Purchasing moving insurance is extremely beneficial in the long run, as there is never a guarantee that your belongings will not be stolen or damaged in the middle of a move.

When purchasing a valuation for your moving coverage, always consider how much you need to be moved. All valuations are based on how much your total packed belongings will weigh. The following table shows the breakdown of average moving insurance costs.

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In general, moving insurance will be costly. Before making a purchase, consider the type of insurance, what they offer, and if it is feasible with your move-out budget.

The main thing to look out for when purchasing a coverage plan for your move-out is the valuation. Your type of coverage will determine how the valuation is calculated. Most coverage plans use weight to determine the value of goods and then give you the cost.

In the table below, there is an example of how a valuation would be calculated for a full-coverage plan. Most full coverage plans will charge $6 per pound and then divide the value of goods by 100. This is to ensure that you are getting 100% of your belongings covered.


This type of coverage is the most common when going through a moving company because you are able to protect your belongings at a reasonable cost.

3 Best Moving Insurance Companies

Still interested in purchasing moving insurance?

The toughest part now is choosing the best match for you and your needs. The following moving insurance companies are the top three in the United States.

Relocation Insurance

Relocation Insurance Group is one of the first companies to offer both moving and storage coverage for residential and business moves. They are licensed in all 50 states and can cover international moves.

They offer coverage for all-risk, total loss, and named perils. This is a wide variety of offerings to best suit any of your given needs.

Baker International

Baker International provides top-notch “in-house” insurance claims and services. They provide single-source insurance to ensure you are able to get a comprehensive policy that fits your needs.

Lakeland Insurance

Lakeland Insurance Group offers the most reasonable pricing. All insurance claim purchases are done online.

They offer full coverage valuation on items such as jewelry, currency, and other valuables. This is something that other insurance companies may not provide or attach an additional fee to your existing valuation.

Homeowners’ Insurance

Another way of having coverage for your belongings during a move is through your homeowners' insurance.

The top three recommended homeowners insurance companies include:

  • Progressive
  • Allstate
  • Lemonade

Homeowners’ insurance provides compensation for your losses in the event of any natural disaster like fires, floods, or earthquakes. When moving out, homeowners’ insurance companies will provide a valuation of your goods and cover them at a 1%, 3%, or 5% coverage rate.

Make sure to double-check that your current policy with your homeowners' insurance company will offer a valuation for a move-out.

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Insure Your Move and Become a Move-Out Pro

When moving out of your home or apartment, it is important to remember to clean the emptied space. Through, you can hire a cleaner to help you move out with a clean home. Let the cleaner take care of the added stress of cleaning while you move.

Feel free also to check out our other blogs on how to create move-out checklists and other great tips to help your move-out experience be enjoyable and efficient.


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Article written by Angela Rush


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