When does homeowners or third-party insurance cover a move better than the mover’s plan?

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Outside insurance covers a move better when it pays more for the losses you are worried about, at a lower cost, than the mover’s valuation does. That turns on three things you can check: whether your homeowner’s or renter’s policy covers property in transit and in a mover’s custody, which perils it covers, and its deductible and limits. On a Georgia move, compare it against full value protection, whose price the state caps.

What the mover’s plan is, and what it is not

A mover’s released value or full value protection sets the mover’s liability; it is not an insurance policy. DPS’s Georgia moving guide says a carrier’s liability and insurance are not the same thing, and suggests asking your insurance agent whether you need additional coverage.

On a move within Georgia, the mover’s two options have known prices and limits:

  • Released value: $0.60 per pound per article, at no charge.
  • Full value protection: replacement value up to the amount you declare, for no more than $15.73 per $1,000 declared with no deductible, or $5.17 per $1,000 with a $300 deductible, under DPS Maximum Rate Tariff No. 7.
  • If you never sign a choice, Georgia treats you as having full value with no deductible, at no charge.

One caution when you compare these with a policy that pays replacement cost: Georgia’s claim rule caps the carrier’s liability at an amount “not exceeding the actual cash value of the property at the time and place of loss” (Rule 570-38-3-.17(7)), so ask the mover how it measures an older item under full value. How those limits work on a real household is set out in what your belongings are covered for on a Georgia local move.

When outside insurance can do better

Your own policy or a separate moving policy can be the better choice in situations like these:

  • Losses the mover is not liable for. In Georgia, a mover is not liable for unlisted jewelry, watches, collectibles, documents, money, or articles worth more than $100 per pound, for damage caused by your own negligent packing, or for loss after delivery. A homeowner’s or renter’s policy may cover some of these, depending on its terms.
  • Causes outside the mover’s control. The Georgia bill of lading excludes loss from causes such as “Acts of God”, strikes, and riots. A policy that covers those perils in transit fills that gap.
  • Items you carry yourself. Jewelry, laptops, and documents you take in your own car are not in the mover’s care at all, so only your own policy can cover them.
  • Higher value than you want to declare. If full value protection at your declared value costs more than adding coverage to your own policy, the policy may be cheaper for the same protection.

When the mover’s plan is the better fit

Full value protection can be the simpler answer when your own policy excludes property in a mover’s custody, covers only named perils that do not include ordinary handling damage, or carries a deductible higher than the mover’s. It also has one advantage outside policies lack: a claim goes straight to the mover, which under Georgia’s claims rule must handle it within 90 days to the extent feasible, rather than through your insurer’s process.

If the mover sells you insurance

Some movers offer separate insurance from a third-party insurer in addition to their valuation. On an interstate move, federal rules require the mover to give you the policy or another written record of it; under 49 CFR 375.201(d), a mover that sells insurance and fails to issue that evidence “may have additional liability”. Disputes with the third-party insurer are handled under the policy, not under federal moving rules. Whatever you buy, get the policy itself, not a sales sheet, before the move.

How to compare, step by step

  1. Estimate what your shipment would cost to replace, and list the items you would most hate to lose.
  2. Ask your agent four questions about your current policy: does it cover property in transit, does it cover property in a mover’s custody, which perils apply, and what deductible and personal-property limit apply, including any separate limit for jewelry or electronics.
  3. Get the mover’s full value price at your replacement value, with and without the deductible.
  4. If you are buying a separate moving policy, read its limits, deductible, exclusions, and how it coordinates with the mover’s liability.
  5. Choose the combination that covers your largest likely loss for the least cost, and write your valuation choice on the mover’s addendum before loading.

Whatever you choose, list any high-value items on the bill of lading or carry them yourself, as explained in how high-value items change your coverage. Outside coverage helps most when it covers what the mover’s plan cannot.

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