When you move out of state, federal regulations require all moving companies to offer two types of coverage. There is also a third option, insurance coverage by a third party. If your policy states that it includes moving and storage coverage, you must determine what that coverage entails. Generally, it may only cover catastrophic damage to your belongings.
Most policies don't provide protection for individual items, but if your possessions are in storage and the warehouse catches fire, or if the truck carrying all your personal items has an accident that destroys everything, you're likely covered. It's important to note that if some of your personal items are damaged due to a typical breakage, such as a fall, your policy probably won't cover them. In general, moving insurance covers any damage caused to household items during transportation (and possibly during storage). Appraisal coverage is the amount of liability that your moving company is willing to accept if your belongings are damaged or lost during the move.
Your homeowners or renters insurance policy won't cover moving to a new home if you default on it. The details of what your moving insurance covers depend on your policy, but they can range from floods or fires to a moving company accidentally dropping your new high-end camera. Your homeowners policy may or may not cover your belongings during a move or when they are in the moving truck. Before the move takes place, make sure you agree with your moving company as to whether these items are covered.
In general, while a standard home insurance policy covers personal property and will reimburse you between 50 and 70% of the value of your belongings if they are damaged in a disaster, many home insurance policies don't cover assets that are in transit. Don't just assume that your homeowners insurance (or renters insurance) will cover every item in the household during the move. In addition, it's very important that you don't assume that your homeowners or renters insurance covers your belongings during the move, as this may not be the case. Review the moving company's insurance policy carefully to make sure you know how much coverage is available.
You can read about both types of liability below or in the brochure Your Rights and Responsibilities When You Move, under federal regulations, that moving companies must provide when moving from one state to another. Some people prefer to have their belongings insured by a third party if the moving company they use doesn't offer this type of valuation coverage. You can also take out insurance from third-party providers to cover any items that moving companies don't cover, such as high-value items. All moving companies must offer two specific types of valuation to moving companies when they move across state lines.
