Does Home Insurance Cover Moving Damage?

Moving involves transporting belongings and requires careful planning. Many individuals wonder if their existing home insurance policy protects their possessions during this process. Standard home insurance policies primarily cover property at a fixed location, and their coverage for items in transit or storage during a move often has specific limitations. Understanding these distinctions is important for adequately protecting personal property during relocation.

Standard Home Insurance Personal Property Coverage

A typical homeowner’s insurance policy, such as an HO-3, provides coverage for the physical structure of your home on an open-perils basis, meaning it covers all causes of loss unless specifically excluded. However, personal property coverage within an HO-3 policy usually operates on a named-perils basis, covering only specific events listed in the policy, such as fire, theft, windstorms, and vandalism. Renters insurance, known as an HO-4 policy, similarly covers personal belongings against these named perils.

Personal property coverage extends beyond the home through “off-premises coverage,” which protects belongings anywhere in the world. This coverage is generally limited, often to about 10% of the total personal property coverage amount listed in the policy. For example, if a policy has $100,000 in personal property coverage, only $10,000 might be available for items damaged or stolen away from the insured residence. This off-premises coverage is intended for situations like theft during travel or damage to items temporarily located elsewhere, but it is not specifically designed for the risks inherent in the moving process itself.

Coverage During the Moving Process

Standard home insurance policies typically do not provide comprehensive coverage for personal property during the actual moving process. This includes risks associated with packing, loading, transit, and unloading. A primary reason for this exclusion is that insurers consider damage occurring during these activities, such as accidental breakage or mishandling, to be preventable or a risk assumed by the owner or the moving company.

Policies often contain a “care, custody, or control” exclusion, which states that damage to property in the care, custody, or control of others, like professional movers, is not covered. This means if a moving company accidentally drops and breaks an item, your home insurance policy will likely not cover the damage. Furthermore, home insurance policies generally do not cover damage resulting from improper packing by the homeowner or gradual deterioration. While perils like fire or theft might still be covered if they occur during transit, common moving mishaps are usually excluded.

Other Insurance Options for Moving

Given the limitations of standard home insurance, several alternative options exist to protect belongings during a move.

Mover’s Valuation Coverage

Professional moving companies typically offer two main types of valuation coverage, which measure the mover’s liability. Released Value Protection, provided at no additional cost, offers minimal reimbursement, typically $0.60 per pound per article. For example, a 10-pound item would only be covered for $6.00.

Full Value Protection costs extra and provides more comprehensive coverage. The moving company is liable for the full replacement value of lost or damaged items, offering repair, replacement, or a cash settlement. Costs typically range from 1% to 2% of declared value, or a minimum of $6.00 per pound of shipment weight.

Third-Party Moving Insurance

Third-party moving insurance policies are available from independent providers. These actual insurance contracts offer more extensive coverage than mover valuation options, often covering a wider range of perils. Costs generally range from 1% to 5% of the total declared value.

Storage Insurance

For items in temporary storage, home insurance may offer limited protection against named perils like fire or theft, subject to off-premises coverage limits. For more extensive protection, especially for valuable items or longer periods, consider dedicated self-storage insurance policies or endorsements to existing home insurance. These specialized policies provide broader coverage tailored to storage risks.