- Renters insurance protects your belongings from damage due to covered events, known as insurance perils.
- Damage by movers isn't considered a peril, so it generally would not be covered by renters insurance.
- You should get moving insurance to protect your belongings from damage during a move.
- See Insider's guide to the best renters insurance companies.
Renters insurance protects your belongings and offers liability coverage for injuries that happen on your property. It also offers relocation costs if you are temporarily forced out of your rental through " loss of use " coverage.
Does renters insurance cover damage from moving?
Renters insurance protects your belongings and furnishings from damage due to covered events, known as insurance perils . A peril is an event that may damage your belongings. Common insurance perils include: theft , fire , and storms.
Damage to your property must occur as a result of an insurance peril, like theft . Unless damage during your move is related to an insurance peril, it is not covered.
The list of covered insurance perils include:
- Fire or lightning
- Windstorm or hail
- Explosion
- Riots
- Aircraft
- Vehicles
- Smoke
- Vandalism
- Theft
- Falling objects
- Weight of ice, snow, or sleet
- Accidental discharge or overflow of water or steam
- Sudden and accidental tearing, cracking, burning, or bulging
- Freezing
- Sudden and accidental damage due to short circuiting
- Volcanic eruption
Renters insurance offers limited protection if you move yourself
State Farm notes that homeowners and renters insurance typically do not cover damage to your possessions while in transit from a move. But there are times when this coverage would protect your belongings.
Theft of your personal property is covered even if it occurred outside of your rental unit. For example, if someone steals your belongings while you're loading items in your car, renters insurance would cover the theft under personal property coverage .
However, there are limits to personal property coverage. Most renters insurance coverage for electronics is around $2,500. Jewelry limits are usually lower, at $1,500. If your electronics or jewelry exceed these limits, you should increase your limits or get an add-on rider or endorsement .
If you are renting a truck to move yourself, State Farm recommends purchasing rental car insurance from the trucking rental "that not only protects the rental vehicle, but also the driver, passengers, and your cargo, depending on the type of coverage you choose."
Get moving insurance if you hire movers
If you hire movers, get moving insurance to protect your belongings from damage and loss. The law requires movers to have minimum liability coverage, and "interstate movers must offer two different liability options referred to as valuation coverage," according to the Federal Motor Carrier Safety Administration (FMCSA).
If you are not doing an interstate move and just moving within your state, the laws may be different for moving companies. FMCSA recommends checking in with your state's movers associations to find out what laws apply to local movers.
Federal law requires movers to offer released value protection and full value protection (FVP). Also, some movers offer third-party liability insurance. Released value is the most basic coverage, but full value offers comprehensive coverage for your belongings during a move.
FMCSA gave the following example for released value coverage: "If your mover lost or damaged a 10-pound stereo component valued at $1,000, you would only receive $6.00 in compensation (60 cents x 10 pounds)."
However, full value protection gives replacement value for lost or damaged goods. So in the above example of the 10-pound stereo valued at $1,000, full value replacement would replace the stereo at $1,000 whereas released value would only offer $6.
If you get third-party insurance, lost or damaged items will be either replacement cost or actual cash value. Replacement cost is the cost to replace the item with a new or used product.
Actual cash value (ACV) takes into consideration depreciation of the item. For example, if a five-year-old leather sofa is broken during the move, the actual cash value considers the age of the sofa. Actual cash value is usually lower than the replacement cost value.
| Mover assumes liability for no more than 60 cents per pound per article | Mover is liable for the replacement value of lost or damaged goods | Mover remains liable for the amount up to 60 cents per pound per article, but the rest of the loss is recoverable from the insurance company |
| n/a | Any item whose value exceeds $100 per pound (such as jewelry, silverware, china, furs, antiques) | Check with third-party insurer |
| Does not include actual cash value nor replacement value | Replacement cost | Replacement or actual cash value |
| No additional charge | In addition to moving cost and varies based on your deductible | Additional cost paid to third-party insurer |
Data from the Federal Motor Carrier Safety Administration (FMCSA)
Tips for moving your belongings
- Be sure to catalog your items via a spreadsheet or video diary, known as an inventory list. If something is lost and damaged, you can submit this with your insurance claim. The FMCSA offers a moving checklist to assist with creating an inventory list.
- If you hire a moving company, see if they are registered with the Federal Motor Carrier Safety Administration.
- Understand the difference between an estimate, order for service, and bill of lading .
- Do not sign blank documents. The FMCSA has a free moving fraud prevention guide to help you avoid common scams.
Via PakApNews