Before you hire a moving company, you should make sure you clearly understand the insurance which the moving company offers. Don’t ever hire a moving company which is uninsured! Moving companies offer many different types of coverage but these are the minimum insurance requirements set by law.
Insurance requirements for local moves
Not all states require local movers to have insurance. So, you might find a small moving company who does weekend jobs without being licensed or insured (all licensed moving companies will have insurance).
It might seem alright to use a cheap, uninsured moving company for a small move. However, this can really backfire on you. Let’s say that the moving truck is in a serious accident with another vehicle. You not only won’t receive any compensation for your damaged belongings, but you could be held responsible for any damage to the other vehicle.
With uninsured moving companies, you might also be held responsible for any personal injuries which occur during the move, such as if one of the movers is injured. These costs can be huge. Don’t use an uninsured moving company just so you can save a few bucks on the move. It isn’t worth the risk. Check your state’s licensing requirements for moving companies and check to see if the movers are licensed in accordance with the law.
Insurance requirements for out of state moves
With local movers, insurance might not be required. However, all out-of-state moves are regulated by the Federal Motor Carrier Safety Administration (FMCSA). All moving companies licensed by FMCSA are required to have two types of basic insurance coverage for customers on out-of-state moves:
1. Released value protection: This moving insurance covers your belongings for a minimum of 60 cents per pound. The insurance will be included in the moving estimate given by the movers and should not be added onto the costs later.
2. Full value protection: This moving insurance will cover the full cost of any damages to items damaged or lost by the movers. Customers will have to pay extra for this moving insurance and it will not be included in the standard moving estimate. There are many items which may not be covered by full value protection and moving companies often will only offer this coverage when you have used their packing services, as they cannot cover anything they did not pack themselves.