This page explains how protection for your belongings works, the terms you will see in your quote and contract, and the questions to ask before you sign. The rules themselves differ from place to place, so it also explains how to find the ones that apply to your move.
“Licensed and insured” does not mean your belongings are insured.
A professional mover carries its own insurance, such as cargo and liability insurance, as part of being properly licensed. That insurance protects the mover’s ability to meet its legal obligations. It does not mean your goods are covered for their full value. How much you can recover depends on the mover’s liability and on any additional protection you choose.
Three layers of protection
1
The mover’s basic liability
Every mover is responsible for loss or damage it causes, but the amount it must pay is usually capped. The cap may be set by law, by a regulated tariff, or by the mover’s own terms and conditions, and it is often calculated by weight (per pound or per kilogram), per article, per package, or per shipment. Because the cap is tied to weight rather than value, a light but expensive item, such as a television or laptop, may be worth very little under basic liability. Basic liability is often included at no extra charge, which is why it is the most common choice and the most common source of disappointment.
2
Valuation (increased mover liability)
Valuation is the mover’s own commitment to accept a higher level of liability, usually for an additional charge. Depending on where you move, it may be called full value protection, replacement cost protection, declared value, or extended liability. Under these options, the mover typically agrees to repair the item, replace it, or pay its value, up to a total amount based on the value you declare for your shipment. Valuation is not insurance. It is a term of your contract with the mover, and its rules, limits and exclusions are set by that contract and by the law where you move.
3
Transit insurance
Transit insurance is a separate policy issued by an insurance company, not the mover. Coverage is usually based on a valued inventory, a list of your items and what each is worth, and policies range from “all risks” coverage to narrower policies that cover only total loss or specific events. Transit insurance is the main form of protection for most international moves.
In many jurisdictions, a mover cannot sell insurance unless it holds an insurance license or acts on behalf of a licensed insurer or broker. This is why many movers offer valuation rather than insurance. You are generally free to buy transit insurance from any licensed provider, and it is worth checking whether your existing home or renter’s insurance covers belongings in transit with a professional mover.
Which kind of move is yours?
The rules that protect you depend on your route, not the distance you travel. A long move within one jurisdiction can follow different rules from a short move across a border.
Moves within one state, province or country usually follow the rules of that jurisdiction. Some set detailed requirements for liability, valuation options and claims; others leave most terms to the mover’s contract and general consumer law.
Moves between states or provinces may follow national rules rather than local ones. In the United States, for example, moves between states are governed by federal rules, even when the distance is short.
International moves have no single set of rules. The mover’s liability usually depends on its contract terms and on international conventions that apply to each mode of transport, such as ocean, air or road, and those limits can be low. It can also depend on whether your mover acts as the carrier or arranges transport through others. For this reason, transit insurance is the standard form of protection on international moves.
To find the rules for your move, see the Licensing & Compliance page for the jurisdiction where your move begins, and for international moves, the page for your destination as well.
What protection commonly does not cover
Whatever protection you choose, read the exclusions. Common limits include:
- Items you pack yourself. Many movers and insurers limit liability for boxes they did not pack unless the damage results from the mover’s negligence.
- High-value items not listed in advance. Jewelry, art, collectibles and other valuable items often must be declared in writing before the move to be fully protected.
- Pairs and sets. If one piece of a set is damaged, you may be compensated only for that piece, not the whole set.
- Mechanical or electrical failure without visible external damage.
- Mold, mildew and climate damage, particularly on long sea shipments or in storage.
- Ready-to-assemble furniture moved without being taken apart.
- Cash, documents, medication and personal valuables, which you should carry with you rather than ship.
- Storage periods. Protection may change or end when goods go into storage, so confirm how long coverage lasts and what it costs.
- Deductibles and depreciation. Some options pay replacement cost; others deduct for age and wear or require you to pay the first portion of any loss.
How to choose the right protection
Estimate what your belongings are worth. Think in terms of what it would cost to replace them today, not what you paid. A room-by-room estimate is usually more accurate than a single guess. For international moves, insurers typically require a valued inventory.
Compare the options in writing. Ask your mover to show you, for your shipment, what basic liability would pay, what valuation would cost and cover, and whether transit insurance is available and from whom. Some jurisdictions require movers to provide this comparison.
Weigh the cost against the risk. Basic liability costs little or nothing because it covers little. The extra charge for valuation or insurance is usually a small percentage of the value protected.
Ask these questions before you sign:
- What will you pay if an item is lost or damaged under each option I can choose?
- Is this valuation or insurance? If insurance, who is the insurer, and will I receive a policy or certificate?
- Do I need to list high-value items separately, and how?
- What is excluded, and is there a deductible?
- Does protection continue while my goods are in storage, and for how long?
- How long do I have to report damage and file a claim, and to whom?
Get it in writing before moving day. Your protection level should appear on your contract or bill of lading. Do not sign blank or incomplete documents, and keep copies of everything.
If something goes wrong
How you document your move, inspect your delivery and file a claim can matter as much as the protection you choose. Deadlines are strict and vary by jurisdiction and contract. See Filing & Managing Claims Tips for best practices from before your move through to settlement.
Protection with an IAMTrusted Mover
Every IAMTrusted Mover has validated credentials, verified licensing and insurance for its scope of service, and is bound by the IAMTrusted Consumer Issue Resolution System. If a claim cannot be resolved directly with your mover, the system gives you a structured path to resolution, and all other forms of resolution remain open to you if the parties cannot reach an agreement.