Most damage claims start with confused customers. They thought everything was “insured.” They didn’t realize their payout might be $6 for a 10-pound TV. And when something breaks, they’re shocked to find out what’s actually covered.

That’s where moving insurance shifts from a boring checkbox to a real way to build trust and protect your business.

What is moving insurance coverage?

Moving insurance protects the customer’s belongings against damage or loss during a move. Unlike valuation coverage (which we’ll cover in a second), it’s an actual insurance policy underwritten by a licensed insurance provider.

It’s not required, but offering it as additional coverage can help your customers feel more secure and help your business stand out.

Many homeowners are familiar with insuring their property and belongings, so offering moving insurance can make it feel like a natural decision.

Types of moving insurance (and what they cover)

Most customers don’t know there’s more than one kind of moving insurance, and if you don’t explain it clearly, you’re the one who’ll deal with the fallout. Here’s how the coverage types actually break down, depending on your customer’s needs and desired level of protection.

Third-Party Moving Insurance Options

Licensed insurance companies offer these options. They go beyond basic liability coverage. Some moving companies partner with insurers to offer these directly to customers.

1. All Risk Coverage

• This is the most comprehensive policy.
• Insurance covers damage or loss from any cause that wasn’t explicitly excluded (like natural disasters, improper packing by the owner, or wear and tear).
• Usually requires professional packing to be valid.

Best for: High-end residential or corporate moves, or customers who want full protection with minimal exceptions.

*These policies often come with a deductible. Review terms closely and help your customer understand how much they’d pay out of pocket if a claim happens.

2. Total Loss Only (TLO)

• Only covers complete loss of the shipment (e.g., a truck getting stolen, a fire breaking out, or a container lost at sea).
• It doesn’t cover damage to individual items.
• Mostly used for long-haul or international moves, or budget-conscious customers.

Best for: Customers shipping items in containers or long-distance, who want basic catastrophic coverage.

3. Named Perils Insurance

• Covers only specific risks listed in the policy, like fire, theft, collision, or overturn of the vehicle.
• Anything that isn’t listed is excluded.
• It’s less expensive but more limited in scope.

Good for: Customers who want a cheaper option with clearly defined protections.

4. Co-Insurance

• A more complex policy structure that requires the customer to insure a certain percentage of the shipment’s total value (typically 80–90%).
• If they under-insure, they’ll only get part of the money back—even if the damage is within their coverage.

Best for: Large-scale or high-value commercial moves where accuracy and transparency in item valuation are critical.

Each of these coverage types comes with pros, cons, and specific use cases. Moving companies should clearly explain these as part of the estimate and planning process.

Moving insurance vs. valuation coverage: What’s the difference?

This is where a lot of confusion happens, and where movers can either build credibility or end up in hot water.

Valuation Coverage: A Mover’s Legal Liability

Valuation isn’t insurance. It’s a level of financial responsibility that movers are required to offer under federal law (for interstate moves) and by most state laws (for local ones). It defines what the moving company owes the customer if something were to get damaged or lost.

There are two standard types of valuation:

• Released Value Protection – Basic and free. Offers $0.60 per pound, per item. It’s automatically included unless the customer opts for more.
  
  
• Full Value Protection (FVP) – Offers coverage based on the actual market value or replacement value of items (up to declared limits). Customers pay extra for it. Movers can choose reimbursement, repair, or replacement of the items.

"Valuation refers back to the principles of common law that make a person or corporation responsible for the safe delivery or safekeeping of another person’s property. A common carrier or warehouseman is responsible for loss or damage that might be prevented through reasonable care on their part.”

Casey Myers, Senior Vice President

‍Champion Risk & Insurance Services

But again, valuation is not regulated insurance. It doesn’t come from an insurance company, and it doesn’t function like a typical policy.

Casey's insight:

“Moving companies purchase insurance for their business including Cargo and Warehouse Legal Liability (if they offer storage), and their insurance policy will pay for damage claims to customer goods based on the valuation that the shipper elected to take from the moving company. Movers cannot sell insurance unless they are licensed to sell insurance and subject to the same regulations as insurance companies. That’s not something your typical moving company would want to do! Still, they want to offer some protection to their customers… That’s where valuation comes into play.”

Moving Insurance: A Real Policy from a Licensed Insurer

Moving insurance is separate from the mover’s liability. Customers can buy it from an insurance provider and it’s underwritten by licensed insurers. It typically offers broader protection and, depending on the type of coverage selected (e.g., All Risk, Named Perils), may cover everything from minor scuffs to completely damaged items.

That means even everyday household goods (like TVs, furniture, or kitchenware) can be protected at their actual value instead of just their weight.

Here’s how to explain it to customers:

“Valuation coverage is what we’re responsible for as the mover. Insurance is a policy you can buy separately that protects the value of your items, especially if you want more than the $0.60 per pound basic protection.”

Key Differences at a Glance

Casey Myers adds:

"The FMCSA requires that at least two valuation options be made available by movers to their customers. Some states also require certain valuation options be offered on intrastate moves.”

How to present insurance options (without getting into legal trouble)

Most movers want to offer insurance as a value-add, but hesitate because they’re unsure what they can legally say. You can talk about insurance with customers. You just need to be clear about what you’re offering and what you’re not.

Champion Risk's Casey says:

“Even the most experienced crew can make mistakes. Each customer will have a different comfort level when it comes to protecting their items, and valuation offers peace of mind. Some moving companies even create their own forms—outside of the standard bill of lading—to explain valuation options. Just be sure your broker reviews anything custom.”

DO: Explain the Options Honestly

Make sure customers know the difference between valuation coverage options and third-party insurance. Here’s a sample script:

We include basic coverage called Released Value Protection. It’s free and legally required, but it only pays $0.60 per pound. So if your $1000 TV breaks, you’d get maybe 10 bucks. If you want protection based on what your stuff’s actually worth, you should get proper moving insurance from a licensed insurance provider.

DO: Use the Right Language

Use terms like:

• “Valuation coverage” for the mover-provided liability
• “Insurance policy” for coverage offered by third-party insurers
• “Optional” and “extra protection” to describe the insurance

Avoid saying:

• “We insure your items” (unless you’re licensed)
• “This will fully protect you no matter what” (no policy can promise that)
• “You need this” (let them decide)

DO: Offer Documentation

If you work with an insurance partner, provide the actual policy terms, coverage details, and exclusions in writing. Let the customer review and decide.

Bonus tip: Include the option in your estimate or booking form, with a required signature or digital checkbox. This shows they were informed and made a choice.

DON’T: Act Like an Insurance Agent 

You’re allowed to offer insurance options, but you can’t sell or bind them. That means:

• Don’t collect payment directly for the policy
• Don’t make guarantees about claim approval
• Don’t interpret policy terms or offer legal advice

Instead, act as a facilitator between your client and your insurance partner. Direct your customer to the insurer’s website or support team.

Why This Matters

Being clear and compliant keeps you out of legal gray areas. Customers appreciate transparency. And when you help them understand their options (without the hard sell), they’re more likely to trust you, book with you, and leave 5-star reviews.

Why offer moving insurance?

1. Build Trust and Confidence

When customers know you offer insurance options, it shows you’re serious about protecting their belongings and that you’re honest about what you can and can’t guarantee.

2. Protect Your Bottom Line

It shifts the risk and keeps you out of messy disputes. The insurance provider handles the claims, not you.

3. Add a Revenue Stream

If you partner with a third-party insurer, you may earn commissions for every policy sold. Even if you don’t, offering it can cut down the hidden costs of disputes and complaints.

4. Differentiate Your Business

A lot of smaller or low-cost movers skip this step. That’s your chance to stand out. Especially when bidding on high-value moves or bundled moving services that require more trust and assurance.

How to offer moving insurance (the right way)

Make It a Standard Part of Your Sales Process

Proactively explain the difference between valuation and insurance early in the quoting process. Everyone knows what to expect.

Keep the Language Simple

Avoid insurance jargon. Say it like this:

“We include basic coverage at no extra cost, but it’s limited. If you want full protection, we can help you get a separate policy that covers the actual value of your belongings for an additional cost.”

Use Your Estimating Tools

Supermove’s Estimator App includes built-in valuation and insurance coverage options. Use it to walk your customers through the coverage choices on the spot and let them sign off digitally.

Train Your Crew and Sales Team

Everyone on your team should understand the options and how to explain them. If they’re unsure, customers won’t trust the offer either.

Common mistakes to avoid

Overpromising on Coverage

Many movers accidentally refer to valuation coverage as “insurance” or say things like “you’re fully covered.” That’s risky and misleading. If it’s valuation, call it that. If you’re offering third-party insurance, be specific about what’s covered, what’s excluded, and who provides it.

Skipping the Conversation Entirely

A lot of crews skip the insurance talk altogether because it feels awkward or they assume customers don’t want to pay extra. That’s a recipe for angry calls later. Even if you’re not selling insurance, you’re still responsible for educating customers about what’s included and what’s not.

Include a clear section about insurance and valuation on your quotes or contracts, and walk your customer through it before the move.

Letting Customers Assume They’re Covered

Customers often assume moving companies are “insured” for any damage. But your business insurance likely covers your liability, not their belongings. Unless they buy a separate policy, they may not have the protection they think they do.

Avoid phrases like: “Don’t worry, we’re fully insured.”

Do say: “We’re insured as a business, but that’s different from a policy that protects your belongings. That’s something we can help you explore.”

Casey Myers' insight:

“A common carrier or warehouseman is generally not liable for loss or damage resulting from acts beyond his/her control as long as they have exercised due diligence. Valuation will not pay for:

Items packed by the customer unless exterior damage is visible

Casualty-type losses (e.g., fire, windstorm, mold)

Pre-existing damage

Items in self-storage

Loss to pairs and sets (unless the entire set is damaged)

Any loss not caused by mover negligence”

Waiting Until the Last Minute

Bringing up insurance the day before the move or during loading is too late. Customers need time to review options, ask questions, and make a decision without pressure. By the time the truck rolls up, they’re focused on moving day stress, not paperwork.

Bring it up during the estimate or booking call. That’s when customers are thinking clearly and planning ahead.

Ignoring High-Value Items

If you know a customer is moving expensive furniture, electronics, or antiques, take the time to flag the risk. Let them know these items may not be fully covered under valuation and walk them through what insurance could offer instead.

Insurance isn’t just a checkbox.

When done right, moving insurance protects your team, earns trust, and even brings in more revenue.

Supermove makes it easy to guide customers through valuation and insurance coverage with built-in tools inside the Estimator App. If you want to simplify your process, we can help.