Some of the most common questions Chicago Area residents ask when they’re preparing to move to a new home are about moving insurance and coverage options:
- What does moving insurance cover?
- Are there different types of moving insurance?
- Do I need moving insurance for local moves?
- How much does moving insurance cost?
Basically, the different types of moving coverage provide different protections for your home’s inventory. While paying for third-party insurance is always the safe bet for both local and long-distance moves, there are ways to save money and reduce your out-of-pocket moving coverage costs.
Types of Moving Insurance and Coverage
One of the most important things you’ll learn about researching moving insurance is:
Moving coverage is not the same thing as moving insurance, and most movers don’t offer true insurance.
Instead, residential moving companies generally offer two different types of coverage (full value protection and released value protection). If you prefer actual moving insurance, you’ll need to source it on your own. The best solution is often to add it to your homeowners’ or renters’ insurance.
So, what’s the difference between full value protection, released value protection, and moving insurance that you purchase from a third party? Let’s dive in.
Full Value Protection vs. Released Value Protection
Legit local moving companies offer their customers two different types of moving coverage—and interstate movers are required by federal law to offer them. They’re incredibly different options, and understanding what full value protection versus released value protection means is crucial to managing your expectations should any of your belongings be damaged or lost during the move.
The first type of moving coverage is full value protection, also referred to as declared valuation. Here’s some key information:
- You declare the total value of the items you’re moving before your move begins.
- In addition to the cost of your move, you’ll pay $100 per $5,000 increment of coverage.
- If an item is lost or damaged, the moving company will repair it, replace it, or offer you a cash settlement for the cost of the repair or your lost item’s current market value.
And here’s how released value protection (also known as carrier liability) differs:
- This type of coverage does not cost you anything extra and is automatically included in your move.
- If an item is lost or damaged, the moving company is legally liable to reimburse you for $0.60 per pound regardless of the item’s actual value.
This can get confusing, so we’ll break it down with an example. Let’s say you have an entertainment system that you purchased three years ago for $800. It weighs 100 pounds, and unfortunately, it’s scratched during your move. Here are your two coverage scenarios:
Full value protection (a.k.a declared valuation)
The moving company obtains a professional estimate to repair the piece for $250. They’ll either pay you $250 or handle the repair and bring you the entertainment system once it’s fixed.
Released value protection (a.k.a. carrier liability)
The moving company is legally responsible for $0.60 per 100 pounds. The entertainment system weighs 100 pounds, which means the mover’s maximum liability is $60.
As you can see, full value protection offers you more money for lost or damaged items, but you’ll need to pay additional for that type of moving coverage.
It’s important to note that whichever option you choose, declaring a value for your home’s inventory is not the same as purchasing a moving insurance policy. For bona fide insurance—and to obtain moving insurance for high-value items—you’ll need to work with a third party.
Third-Party Moving Insurance for High-Value Items
In the state of Illinois, the only way to get your items covered for their full replacement value is by purchasing a separate moving insurance policy through a licensed broker. For most Chicagoland residents, this means contacting their homeowners’ or renters’ insurance company, particularly for high-value items.
If you have antiques (items that are at least 100 years old), priceless items, or items of extraordinary value (worth more than $100 per pound), you might want to consider purchasing moving insurance from a third party. Loss and damage are never expected during a move, but just in case you need to place a claim for any high-value items, your moving company will only be legally liable for the maximum amounts dictated by your chosen form of coverage: full value or released value protection.
How Much Do Moving Insurance and Coverage Cost?
Now that you have the answer to the all-important question “What does moving insurance cover?”, it’s time to look at the cost of the different types of coverage options.
This will vary dramatically depending on the value of your home’s inventory and what type of moving coverage you choose. To help you estimate your costs, here are some averages:
- Released value protection: There is no upfront cost during your move. However, if an item is lost or damaged, you’ll only be reimbursed $0.60 per pound, so you may incur out-of-pocket expenses to replace or repair the item.
- Full value protection: Your cost will be $100 per $5,000 of coverage you purchase from the moving company. Some Chicagoans with one or two-bedroom apartments or condos choose $5,000 worth of coverage (an additional $100 cost), while single-family homeowners might opt for $15,000 or $20,000 of coverage (an additional $300 or $400, respectively).
- Third-party insurance: According to an analysis published in February 2025, third-party moving insurance policies tend to cost between 1% and 5% of your inventory’s total estimated value.
The best movers in Chicago are well-versed in all sorts of moving insurance and estimating the value of home inventories. If you’re not sure of the best coverage route or how to determine how much third-party insurance is right for you, just contact your moving company’s customer service department for some advice.
Do You Need Moving Coverage for Local Moves?
This question can be answered with just three little letters: Yes.
It doesn’t matter if you’re moving across the hall, across town, or across the country. Every single move absolutely needs adequate coverage.
Keep in mind that professional movers are highly skilled and specially trained to take the very best care of your items, and the goal is for customers to never have to file a claim. However, state and federal law acknowledge that there’s an inherent risk of damage or loss during a move, and to protect you and your belongings, legitimate moving companies and third-party brokers offer a variety of coverage options during your home relocation.
Let the Best Movers in Chicago Give You a Smooth, Damage-Free Move!
Moving is stressful enough without having to worry about what moving insurance protects and how much the different types of coverage will cost you. We’ll walk you through all of the options and provide the highest level of service possible to give you a great moving experience free of damaged or lost items.
Connect with a moving specialist today and get a custom estimate of your upcoming move!