Moving Insurance: Released Value Protection and Full Value Protection

Being underinsured is one of the most common, and often costliest, mistakes that people moving home make.

So, this week’s home moving blog is dedicated to explaining all you need to know about insuring your move and the pitfalls to avoid.

What Is Moving Insurance?

When you hire professional movers, you may assume your belongings are automatically insured, but that’s not exactly true.

Under U.S. Department of Transportation (DOT) regulations, moving companies cannot sell actual insurance.

Instead, they offer what’s called valuation coverage, a legal level of liability for your goods while they’re in the mover’s possession.

What’s the difference?

• Moving Insurance – Provided by a licensed insurance company or agent. You pay a premium, and the insurer covers loss or damage up to your policy limits.
• Valuation Coverage – Provided by the moving company. It defines how much they’re legally responsible for paying if your belongings are lost or damaged during the move.

Simply put, valuation coverage acts like insurance, but it’s technically not. Although you will get a level of protection, it is usually woefully inadequate.

Always ensure that you fully understand the level of cover you are being offered to prevent any nasty surprises in the event of a claim.

You may also like to read: Professional Packing Services: Most insurance policies will not cover any item that you have packed yourself. Considering how much easier having somebody do your packing for you is as well, in most circumstances, it makes sense to hire professional packers. Find out all you need to know in this guide.

Types of Moving Insurance

By federal law, all interstate movers must offer two valuation options:

• Released Value Protection (RVP) – Basic, free coverage.
• Full Value Protection (FVP) – Comprehensive coverage for an added cost.

Many reputable movers also extend both options to local and intrastate moves.

Released Value Protection

Released Value Protection (RVP) is the default, no-cost option most moving companies include. While “free” sounds great, it offers minimal protection.

• Coverage rate: 60 cents per pound per item.
• Cost: Free (included in your moving quote).
• Payout basis: Based on item weight, not actual value.

Example:

If your 30-pound 4K Smart TV, worth $1,000, gets damaged, your reimbursement would be only $18 (30 × $0.60). Clearly, that’s not enough to replace or repair it.

You’ll need to sign a waiver agreeing to Released Value Protection, but think very, very carefully before accepting RVP insurance.

When to choose Released Value:

• You’re moving inexpensive or replaceable items.
• You’re taking all your valuables (in your car, for example).
• You plan to purchase third-party moving insurance instead.

Remember, you will only get 60 cents per pound for any damaged or lost items, and this does not cover any items that you have packed yourself.

You may also like to read: Understanding the Bill of Lading. The Bill of Lading is the contract between you and the mover, and it is essential that you read and understand this document to avoid any misunderstandings or possible scams.

Full Value Protection

Full Value Protection (FVP) offers significantly more security.

Under Full Value Protection:

• Your mover is liable for the full replacement or repair value of any lost or damaged items.
• You can expect your belongings to be repaired, replaced with a comparable item, or reimbursed at current market value.
• You’ll pay a small premium, typically around 1% of your total shipment value.

Example:

If your shipment is valued at $30,000, your Full Value Protection cost may be around $300.

Pros of Full Value Protection:

• Covers repair, replacement, or reimbursement.
• Offers peace of mind for valuable items.
• Required by most long-distance movers unless declined.

Cons:

• Costs extra.
• Excludes certain high-value items unless declared.
• May have a deductible.

How Full Value Protection Works

To activate FVP, you’ll need to declare the total value of your shipment before moving day.

Here’s how it works step-by-step:

• Create a household inventory with approximate values.
• Provide the list to your moving company before your move.
• Pay the premium based on the total declared value.
• File a claim if any items are lost or damaged as soon as possible.

If a claim is approved, the mover can:

• Repair the damaged item,
• Replace it with an item of equal value, or
• Pay you its current market value.

High-Value Items: Anything worth over $100 per pound (like jewelry, antiques, fine art, or electronics) must be listed separately on your shipping documents. Movers can limit their liability for these items unless you declare and insure them.

You may also like to read: How to Check That Your Mover is Licensed. In this guide, we explain the different types of mover licenses, why they are important, and what you should be looking for when viewing their license.

Third-Party Moving Insurance

For even more protection, you can purchase third-party moving insurance from a licensed insurer. This policy supplements your mover’s valuation coverage.

Why choose third-party insurance:

• Covers high-value or specialty items excluded by valuation.
• Protects against natural disasters, theft, or acts of God.
• Offers higher payout limits and flexible deductibles.

If you go this route, remember:

• Your mover still remains liable for 60 cents per pound (Released Value).
• The insurance company covers the rest, up to your purchased limits.
• Check whether the policy covers items that you have packed yourself

Tip: Check your homeowners’ or renters’ insurance policy. Some providers extend partial moving coverage for items in transit — but usually not for the loading or unloading process.

You may also like to read: Damages Caused by Movers – The Claim Process. In this guide, we suggest actions to take before, during, and after the move to ensure that you comply with the insurance claim process of your mover.

When Your Mover Isn’t Liable

Even with Full Value Protection, there are situations where your mover’s liability is limited or voided. Understanding these exceptions helps you avoid unpleasant surprises.

Movers Aren’t Responsible For:

• Items you packed yourself: They can’t verify proper packing, so internal damage isn’t covered.
• Hazardous or perishable items: Movers won’t cover leaks, spoilage, or explosions.
• Acts of nature: Earthquakes, floods, or tornadoes may not be covered without extra insurance.
• Undeclared high-value items: If not listed in writing, you’ll only receive standard compensation.
• Late claims: You must file any claim within the specified time frame, or your claim will be rejected.

You may also like to read: What Movers Won’t Take and Why. In this guide, we look at the items that movers will not move for health and safety reasons, and that if you try to sneak onto the moving truck will invalidate any insurance you have.

Choosing Between Released and Full Value Protection

So, which moving insurance should you choose?

Scenario	Recommended Coverage
Moving low-value items	Released Value (free)
Moving high-value or sentimental items	Full Value Protection
Wanting complete coverage for rare or luxury items	Full Value + Third-Party Insurance
DIY packing and short local move	Released Value or partial coverage
Long-distance move with valuable furniture or electronics	Full Value Protection

Rule of thumb: If your shipment includes expensive or irreplaceable belongings, Full Value Protection (possibly combined with third-party insurance) is the most sensible choice.

You may also like to read: Moving Associations. Moving Associations can often offer arbitration should there be a dispute between you and your mover, and it is essential if you are moving overseas that any mover you hire is a member of a movers’ association. In this guide, we look at the various moving associations and what they do.

Released vs. Full vs. Third-Party Insurance

Here’s a quick comparison of all three coverage types:

Released Value Protection    

• Provided free of charge by the mover                      
• Will cover up to $0.60 per pound
• Not suitable for high-value items                  
• Best for budget moves and low-value items

Full Value Protection

• Typically costs about 1% of shipment value  
• Offers full repair/replacement         
• Partially covers high-value items that you must declare.
• Best for long-distance or valuable moves

Third-Party Moving Insurance  

• Cost varies
• Offers cover up to policy limits 
• Covers high-value items        
• Best for luxury goods, collectibles, art, electronics

You may also like to read: The Different Types of Moving Quotes. Just as there are different types of insurance, there are also different types of quotes you may be given by movers. In this guide, we explain all you need to know about moving quotes.

FAQs About Moving Insurance

1. Is moving insurance required by law?

No, but movers must offer valuation options. You decide which to select before signing your bill of lading.

2. Can movers sell real insurance?

No. Only licensed insurance companies or agents can. Movers can only provide valuation coverage.

3. How long do I have to file a claim?

Under Federal Law, you have 90 days in which to file your insurance claim, but still check your policy to ensure you comply with filing a claim properly.

4. Does homeowners’ insurance cover moving?

Usually not. Some policies offer limited in-transit protection, but rarely for loading or unloading.

5. How can I protect high-value items?

Always declare items worth over $100 per pound in writing, and consider buying third-party insurance for full coverage.

Moving is hazardous, and the cost of replacing damaged items can far exceed what you save by skipping insurance. This is the one element of your moving costs that is worth spending the extra money on.

To protect your belongings and peace of mind:

• Understand what your mover covers.
• Declare valuable items before moving day.
• Consider third-party insurance for complete protection.

Good luck with your move, and be sure to visit our home moving blog, which is packed with guides to make every aspect of your home move easier, cheaper, and safer.