How Does Home Insurance Cover Moving?

Does homeowners insurance cover moving damage?

In most cases, your homeowners coverage will protect your personal possessions if they’re broken during a move, both on the way from and moving to an insured location. But exactly how your covered depends on the type of “covered peril” or loss that’s occurred. For instance, if you’ve neglected to properly protect your fine china before boxing it up, you may not be covered if breaks occurred in transit.

But if the moving truck carrying your personal property gets into an accident and your things are destroyed or damaged in that covered event, you’ll likely be able to file a claim.

How is personal property covered by homeowners insurance when moving?

Under a standard homeowners policy, most personal property in transit is covered on a named-peril basis only. That’s insurance jargon for a stated type of loss that is defined, or "named," in your homeowners policy. If the driver loses control of your moving truck and it overturns, causing real damage to much of your stuff on that truck, you’ll usually be covered.

That’s because your home insurance policy defined an overturned truck as a named peril. And that kind of coverage can mean a lot when everything you own is being transported across the country.

Are your things covered if you move them yourself?

The great part about homeowners insurance is that it’s broad-spectrum coverage that can travel with your belongings. And in this case yes, it can be coverage that extends to things you move on your own.

If you move your things in your own trailer, those items are covered while in transit, but you’ll usually need to have comprehensive or collision coverage for your vehicle. And some insurance groups may require the trailer to be listed on the declarations page of your policy.

But you should know that the most common moving mishap — damage to personal items due to improper handling — is not usually covered. If you’re not a seasoned mover, you may think your things are safe for transport when they’re not. Without the right packing equipment and know-how, loads can shift during transport and that’s where breakage occurs that can result in a denied claim.

Does your auto policy cover a rented moving truck?

The answer to that depends on the state you’re in and your insurance carrier. It’s always best to call your insurance agent and inquire about how your auto coverage can extend to rental vehicles. You may want to purchase additional coverage from the truck rental company to ensure that the vehicle is sufficiently covered.

Does homeowners insurance cover moving company negligence?

When getting quotes for moving, be sure to verify that your mover’s certificate of insurance is up to date. It’s also important to learn about the terms of their coverage. Ask them the following questions:

• How will I be covered if my belongings are damaged or destroyed while in the mover’s possession?
• What additional insurance is available for purchase?
• If all my personal property were to be lost or destroyed, how is that covered and what’s my deductible?
• What types of damage are covered, and what types are not?

What do moving companies offer for your possessions in transit?

Moving companies may offer their own form of liability protection for breakage or damage to your possessions while they’re being transported. You should be aware: the protection typically offered by moving companies is not governed by state insurance laws.

Released Value Protection

Typically offered at no additional charge, this minimal coverage protects your things at around 60 cents per pound, per damaged item. So, if your eight-pound blender were damaged in transit, you’ll receive $4.80 ($0.60 x 8) for the loss. Frequently, that type of coverage won’t help you replace items broken in transit.

Full Value Protection

This more robust program is available for you to purchase separately and usually reimburses you for the full value of lost, damaged or destroyed items in your shipment.

Your moving company will likely attempt get broken items repaired, replace them with a similar product or offer a cash settlement based off of the current retail price for the items.

Additional Liability Insurance

This coverage-for-purchase is usually paired with released value protection, where a third-party insurance company will cover the difference between 60 cents per-pound released value protection amount and the replacement price.