Does Homeowners Insurance Cover Moving Damage?

Homeowners insurance provides financial protection for your dwelling and personal property. When relocating belongings to a new residence, a common question is whether damage during the moving process is covered. Understanding these policy nuances can help in planning for a secure transition.

Understanding Homeowners Insurance and Moving Damage

Standard homeowners insurance policies generally do not cover damage to personal belongings while they are being moved from one residence to another. This limitation stems from an “in-transit” exclusion within the policy. This means that once items leave the original insured premises or before they arrive at the new location, typical coverage for accidental damage may not apply.

However, limited exceptions exist where homeowners insurance might offer some protection during a move. If a covered peril, such as a fire or theft, occurs while items are still on the insured property, or if a moving truck is involved in an auto accident, your policy may provide coverage. Personal property coverage limits can sometimes be lower when items are away from the primary insured residence, often capped at 10% of the total personal property coverage.

Specific Scenarios and Exclusions

Homeowners insurance policies have specific exclusions that limit coverage for moving-related incidents. If professional movers damage an item, such as dropping furniture or scratching an antique, your homeowners policy will not cover these losses. The moving company’s own liability coverage is the primary avenue for recourse.

If you undertake a do-it-yourself (DIY) move and items are damaged by you or friends and family during handling, standard homeowners policies generally exclude coverage for accidental breakage. This applies to general breakage, scratches, or damage from items being dropped during the physical moving process when items are in transit. Water damage incurred during transport, such as from rain or a burst pipe in a moving truck, is also not covered by a standard homeowners policy.

Alternative Protection for Your Belongings During a Move

Given the limitations of homeowners insurance, alternative protections are available to safeguard your belongings during a relocation. Moving companies are required to offer different levels of liability or valuation coverage. Released Value Protection is a basic option, usually provided at no additional charge, offering minimal reimbursement, typically around $0.60 per pound per article. This means a valuable, lightweight item would receive little compensation if damaged.

A more comprehensive option is Full Value Protection, where the moving company is liable for the replacement value, repair, or a cash settlement for lost or damaged items. This option usually comes at an additional cost, often calculated as a percentage of your shipment’s declared value, such as $6.00 per pound of the total shipment weight. For items of extraordinary value, exceeding $100 per pound, declare them in writing on the shipping documents for full coverage.

Beyond mover-provided options, third-party moving insurance policies can be purchased from independent insurers. These policies offer direct coverage for your belongings during transit and provide more comprehensive protection than basic mover liability. The cost of such policies typically ranges from 1% to 4% of the total declared value of your belongings. Some credit cards also offer limited benefits like purchase protection or extended warranties for items bought with the card.

Actions After Moving Damage

If your belongings sustain damage during a move, take immediate and thorough action regardless of your coverage. Document the damage with clear photos and videos from multiple angles, noting the date and time. Create a detailed list of each damaged item, including its brand, model, purchase date, and a description of the damage.

Promptly notify the responsible party, typically the moving company, about the damage. For interstate moves, you generally have up to nine months to file a claim, but initiating the process as soon as possible is recommended. Retain all relevant documentation, including your moving contract, inventory sheets, receipts, and any communication with the moving company or insurer. Avoid repairing damaged items until instructed by the claims adjuster, as altering their condition could affect your claim.