When planning a move, securing your belongings is the single most important step after selecting a TrustedMovePro. It is crucial to understand that the terms for protecting your shipment—known as Liability, Valuation, and Transit Insurance—change dramatically depending on the type of move. Whether you are moving locally (within a state), interstate (state-to-state), or internationally (across borders), the regulatory and legal framework shifts, affecting the mandatory minimum coverage your mover provides and, more importantly, dictating the level of financial protection you must choose to fully cover your items. By understanding these distinctions, you can ensure your valuables are protected against loss or damage from your current door to your new destination.
Protection for Local Moves (Intrastate)
A local move is generally defined as one that occurs entirely within the borders of a single state. Because these moves are regulated at the state level (intrastate) rather than the federal level, the rules governing mover liability can vary significantly.
For consumers, the most important distinction is that Local Movers are not federally required to offer the same standard valuation options as interstate movers.
Mover Liability: Released Value
For local moves, most state regulations require the mover to provide, at minimum, a form of basic liability, often referred to as Released Value coverage.
- Definition: This minimum coverage limits the mover’s liability to a fixed, low dollar amount per pound of weight, regardless of the item’s actual value.
- Typical Coverage: This standard is often set extremely low, sometimes as little as $0.30 or $0.60 per pound, per item.
- Consumer Risk: If your mover damages a 10-pound antique lamp worth $2,000, your reimbursement under Released Value might only be $6.00. This minimal coverage is included in the base cost of your move but offers almost no real protection for your belongings.
Full Value Protection & Transit Insurance
Since Released Value provides minimal financial safety, consumers undertaking a local move must proactively secure additional protection to cover their possessions’ full value.
- Valuation: This is a contractual agreement that holds the mover responsible for damage or loss up to a specified dollar amount. Your TrustedMovePro is required to offer you options to increase this liability.
- Transit Insurance: This is actual insurance purchased through the mover or a third party. This policy is highly recommended as it covers your goods for their full replacement cost, ensuring adequate financial protection against damage or catastrophic loss.
Always discuss these options thoroughly with your TrustedMovePro and review your state’s specific liability requirements before signing your contract.
Protection for Interstate Moves (State-to-State)
An interstate move is any move that crosses a state line. These moves are strictly regulated by the Federal Motor Carrier Safety Administration (FMCSA), a branch of the U.S. Department of Transportation. This federal oversight mandates specific consumer protection standards, including two primary valuation options that your TrustedMovePro must offer.
1. Released Value Protection (Minimum Liability)
This is the most economical, base level of liability and is included in the moving rate at no extra charge.
- Federal Standard: The liability is set at a maximum of $0.60 per pound, per article.
- Consumer Risk: As with local moves, this minimal coverage is rarely adequate. If a 100-pound television valued at $1,500 is damaged, the maximum reimbursement would only be $60.00 (100 lbs x $0.60).
- Waiver: By selecting this option, you are agreeing to waive your right to the higher protection levels, acknowledging the limited liability of the mover.
2. Full Value Protection (Recommended Standard)
This is the most comprehensive option and is the federally mandated default liability plan. Your mover must offer this, and you will pay an additional charge for it.
- Mover Responsibility: Under Full Value Protection (FVP), the mover is responsible for the full replacement cost of any damaged or lost item up to the total minimum valuation you declare for your shipment.
- Settlement Options: If an item is damaged, the mover must choose one of three methods for settlement:
- Repair the item to its condition prior to the move.
- Replace the item with a similar item.
- Pay you for the cost of replacement or repair.
- Deductible: FVP often comes with a deductible (similar to car insurance) that the consumer must pay before the coverage applies.
Transit Insurance (Third-Party Coverage)
While FVP provides robust liability through your mover, consumers may choose to purchase supplemental Third-Party Transit Insurance. This can offer additional coverage beyond the mover’s FVP limits or cover specific high-value items separately, providing the maximum financial security.
Always ask your TrustedMovePro to clearly explain the total declared value for your shipment under FVP and any applicable deductibles before you sign the bill of lading.
Protection for International Moves (Overseas)
International moves (or “international relocations”) are fundamentally different from domestic moves because they involve transportation across multiple sovereign borders via ocean freight or air cargo. Liability is governed not by a single country’s regulatory body, but by international conventions (like the Hague-Visby Rules for ocean transport) and the carrier’s specific contract.
Mover Liability: Very Limited
Unlike the FMCSA standards for interstate moves, your mover’s base liability for an international shipment is extremely low and is generally tied to the weight or volume of the goods, not their actual value.
- Minimum Coverage: Base liability is usually defined by the carrier’s tariff or bill of lading and may be based on a minimal value per pound or cubic foot of cargo. This is comparable to the low dollar-per-pound rate of Released Value Protection, but even less standardized.
- Consumer Risk: Relying on the mover’s included liability means you risk a virtually total financial loss in the event of major damage or catastrophic loss, as the reimbursement will cover only a tiny fraction of your shipment’s true value.
Transit Insurance (Essential Full Coverage)
For international relocations, purchasing comprehensive Transit Insurance is not just recommended—it is considered essential for prudent risk management.
- Full Replacement Cost: This insurance is a separate policy, typically arranged by your TrustedMovePro through a third-party underwriter, that covers your goods for their full replacement value.
- All-Risk Policy: Most policies are “All-Risk,” meaning they cover virtually any physical loss or damage from external cause, subject only to the standard exclusions (e.g., inherent vice, nuclear risk, war).
- High-Value Items: You must declare the full replacement value of your shipment to ensure the policy is correctly written. High-value or unique items may require separate appraisal or itemization.
TrustedMovePro recommends that consumers always purchase a full-coverage Transit Insurance policy for all international household goods shipments to mitigate the extreme financial risk inherent in ocean and air transit.
Licensing and Expertise
Because international transit insurance policies cover global risks (Marine Cargo Insurance), the sale of these policies is highly regulated. In most jurisdictions, a moving company must either be a licensed insurance producer or broker or work directly with a licensed insurance intermediary to legally offer this coverage. This regulatory requirement ensures that the policy offered to you is accurately underwritten and compliant with international shipping laws.