Moving to a new home is an exciting milestone, but it comes with a unique set of challenges and risks, especially while protecting your personal belongings. Many homeowners wonder whether their homeowners insurance will cover damage to their possessions during a move. Understanding what your policy does and does not protect can help you avoid costly surprises and ensure a smooth transition to your new residence.
Standard homeowners insurance policies generally provide coverage for your personal property against specific risks, known as "named perils," such as fire, theft, or vandalism. This protection can extend to your belongings even when they are temporarily away from your home, including during a move. For example, if your moving truck is stolen or catches fire while in transit, your homeowners insurance may help reimburse you for the loss, subject to your policy's limits and deductible.
However, there are important limitations and exclusions to be aware of:
Covered Perils Only: Your belongings are only protected if the damage or loss results from a peril specifically listed in your policy. Common covered perils include fire, theft, and certain types of accidents.
Off-Premises Limits: Many policies limit coverage for personal property when it is away from your primary residence. For instance, your policy might only cover up to 10% of your total personal property limit while your belongings are in transit or in storage.
Deductibles Apply: Any claim you make will be subject to your policy's deductible the amount you must pay out of pocket before insurance kicks in.
The most significant gap in coverage is breakage or damage caused by handling. If your movers accidentally drop your television or scratch your dining table, standard homeowners insurance typically will not cover these types of incidents. This exclusion applies whether you move your belongings yourself or hire professional movers.
Additionally, if your property is in the possession of a moving company, most homeowners' insurance policies exclude coverage for damage or theft that occurs while movers are handling your items. In these cases, you would need to rely on the moving company's insurance or purchase separate moving insurance for full protection.
Federal law requires moving companies to offer at least minimal liability coverage for your belongings, often referred to as "released value protection." This coverage, however, is limited—typically only 60 cents per pound per item, which may not come close to replacing damaged or lost valuables. For more comprehensive protection, you can purchase "full value protection" from the moving company or a third-party insurer, which covers the current market value of your items.
Review Your Policy: Before you move, contact your insurance provider to clarify what is and isn’t covered during a move, and whether your coverage limits are adequate for your needs.
Consider Additional Coverage: If you have high-value items, ask about scheduling them separately for broader protection, or purchase supplemental moving insurance.
Inventory Your Belongings: Document your possessions with photos and receipts to streamline the claims process in case of loss or damage.
Understand State and Federal Requirements: If you’re moving across state lines, know that federal law mandates moving companies to offer both released value and full value protection options.
For more information on moving insurance regulations, visit the Federal Motor Carrier Safety Administration (FMCSA) and review U.S. Census Bureau moving statistics to understand how common moving-related losses can be.
While damage from a covered peril (like a vehicle accident, fire, or theft) may be covered, breakage from improper packing or handling is typically excluded.
Many policies offer limited coverage (often 10% of your personal property limit) for items in storage, but only against covered perils.
Yes, you can schedule high-value items (like jewelry or art) for additional coverage, which may protect them regardless of location.
Only if the disaster is a named peril in your policy. For example, flood damage is generally excluded unless you have separate flood insurance.
Moving is stressful enough without worrying about your belongings. By understanding your homeowners' insurance coverage and supplementing it as needed, you can protect your possessions every step of the way. For personalized guidance and to review your policy before your next move, contact us today at CF&P Insurance Brokers, your trusted partner in safeguarding what matters most. You can also call us directly at (925) 956-7700.
