Here is the single most useful thing to understand before you hire any mover: the "insurance" your moving company includes is almost never insurance. It's called valuation, and it is a measure of the mover's liability— how much they owe you per pound if something is lost or damaged. The free, built-in level pays sixty cents per pound. For most of what's in your house, that number is shockingly low, and the moment people discover the gap is usually after a flat-screen hits the floor.
This guide explains, in plain English, what coverage you actually get on a move, how the federal interstate rules differ from California's intrastate rules, when a separate insurance policy is worth buying, what is never covered no matter what you pay, and how to file a claim if it comes to that. We've been answering these questions for Bay Area families since 1990, and we'd rather you understand the tradeoffs up front than be surprised at claim time. (None of this is legal advice — it's the practical version of rules published by the FMCSA and California's Bureau of Household Goods and Services.)
Valuation is not insurance — and the difference matters
Insurance is a separate product, sold by a licensed insurance company and regulated (in California) by the Department of Insurance. Valuation is the level of liability your mover assumes under their transportation contract — the bill of lading. When a mover says your goods are "covered," they almost always mean valuation, not a policy. The two behave very differently when something breaks, so it's worth knowing which one you have.
Interstate moves: the two federal options
Any move that crosses a state line is governed by federal rules the Federal Motor Carrier Safety Administration (FMCSA) sets out in your Rights and Responsibilities When You Move booklet. By law, every interstate mover must offer exactly two levels of liability, and your estimate must state both:
| Option | What it pays | Cost |
|---|---|---|
| Full Value Protection (FVP) | The mover is liable for the replacement value of any lost or damaged item — they repair it, replace it, or pay a cash settlement for its current market value. This is the default on interstate moves unless you waive it in writing. | Added cost, varies by declared value and deductible. The mover may set a minimum valuation (commonly around $6.00 per pound times the shipment weight). |
| Released Value (60¢/lb) | The mover owes no more than 60 cents per pound, per article — regardless of what the item is actually worth. You must sign a specific statement to choose this and waive Full Value Protection. | Free — it's built into the base rate. |
The 60-cent math is the part people don't see coming. Suppose a 55-inch TV that weighs 28 pounds is dropped. Under Released Value, the mover owes 28 × $0.60 = $16.80 — not the $900 the TV is worth. A 40-pound antique dresser destroyed in transit? $24. That is the entire reason this article exists: the free option is real coverage, but it is liability-by-weight, and household goods are light relative to their value.
Under Full Value Protection, that same TV is repaired, replaced, or settled at its actual replacement value. FVP usually comes with a choice of deductible, and you declare a total value for the shipment (the mover's minimum is typically the shipment weight × $6.00). If you under-declare to save money and then have a large claim, the settlement is reduced proportionally — so declare honestly.
California intrastate moves: a different default
A move that stays inside California — San Jose to Sacramento, Palo Alto to Los Angeles — isn't federal. It's regulated by the Bureau of Household Goods and Services (BHGS), part of the California Department of Consumer Affairs, under a rulebook called Maximum Rate Tariff 4 (MAX 4). The headline difference from interstate:
- On a California intrastate move, the default minimum liability is the same 60 cents per pound — but here it is the starting point, not automatically upgraded to full value the way interstate FVP is.
- Every legitimate California mover must offer you the option to declare a higher value and buy added protection. Refusing to let a customer declare more than 60¢/lb is an actual CPUC/BHGS violation that has been cited in enforcement actions.
Translation: inside California, you have to opt up. If you say nothing, you're at 60¢/lb. Ask your mover — in writing, on the paperwork — to declare the real value of your shipment and add the protection. A reputable mover will walk you through it without being asked; if yours won't, that's a flag worth reading our rogue-mover verification guide over.
The third option: separate moving insurance
Because valuation is capped by the mover's contract, some people buy a genuine third-party insurance policy on top — sold by a licensed insurer, not the moving company. This is worth considering when:
- You're moving items of unusual value (fine art, a wine collection, heirloom furniture) where you want true replacement coverage with a named beneficiary and a claims process backed by an insurer.
- You want coverage for risks valuation specifically excludes (see below), such as items in boxes you packed yourself.
- Your homeowner's or renter's policy has a moving/transit rider — many do, and it's worth a five-minute call to your agent before you buy anything separate.
For most ordinary household moves, Full Value Protection from a reputable mover is sufficient. For a move heavy in irreplaceable or high-dollar items, layering a separate policy on top is a reasonable, conservative choice.
What is never covered — no matter what you pay
Even at the highest valuation level, some categories are limited or excluded by the standard contract. Knowing these in advance prevents the worst claim-day surprises:
- Boxes you packed yourself ("PBO").If a carton is owner-packed, the mover is generally liable only if there's visible external damage to the box. The fix: have the mover pack your fragile and high-value cartons, or buy separate coverage for owner-packed items.
- Items of "extraordinary value" you didn't declare. Federal rules let movers cap liability on any single item worth more than $100 per pound— jewelry, furs, rare collectibles, important documents — unless you specifically list it on a high-value inventory form before the move. Declare them; don't assume.
- Mechanical or electronic failure with no external damage.If a TV or appliance powers on but the screen is dead and the cabinet is intact, that's typically excluded.
- Cash, valuable papers, and irreplaceables. Carry passports, jewelry, hard drives, and cash yourself — never put them on the truck.
- Inherent vice, mold, pests, and perishables. Damage from the nature of the item itself — or from leaving food, plants, or liquids on the truck — isn't the mover's liability.
How to file a moving claim (and the deadlines that bind)
If something is lost or damaged, the claims process for interstate moves is governed by federal regulation (49 CFR Part 370), and there are hard deadlines on both sides:
| Step | Deadline |
|---|---|
| You file a written claim | Up to 9 months after delivery (or the expected delivery date if goods never arrived). File earlier if you can — memories and evidence fade. |
| Mover acknowledges receipt | Within 30 days of receiving your claim, in writing. |
| Mover pays, denies, or makes an offer | Within 120 days. If they can't resolve it in that window, they must update you on the status and reason for delay. |
To make a claim go smoothly, build your evidence on move day, not after the loss:
- Photograph high-value items before they're wrapped — condition, serial numbers, and any pre-existing wear.
- Check the inventory sheet the crew creates and note any condition codes you disagree with before you sign.
- Inspect at delivery and note visible damage on the inventory/delivery paperwork before the crew leaves.
- Keep receipts or replacement-cost evidencefor anything you're claiming.
A quick decision framework
- Moving across a state line? Full Value Protection is your default — keep it unless you have very little of value. Only waive down to 60¢/lb deliberately.
- Moving within California? The default is 60¢/lb — you must actively declare a higher value and add protection. Do it in writing on the paperwork.
- Have art, wine, heirlooms, or a home full of high-dollar items? Consider a separate third-party policy on top of FVP, and list anything over $100/lb on a high-value inventory.
- Packing your own boxes to save money? Understand that owner-packed cartons have limited coverage — let the mover pack the fragile and valuable ones.
How we handle it
Silicon Valley Moving & Storage is a licensed California household mover (CAL-T 188960) and a Bekins Van Lines interstate agent (USDOT 70719). On every estimate we lay out your valuation options in writing — the federal Full Value Protection / Released Value choice on interstate moves, and the declare-higher-value option on California intrastate moves — and we'll tell you honestly when a separate policy is worth it and when it isn't. If you're comparing movers, our guide on what an interstate Bekins agent actually does explains why a single accountable carrier matters at claim time, and you can always request a free quote or call us at (408) 941-0600 to talk through the right level of protection for your move.
Sources: Federal Motor Carrier Safety Administration, Your Rights and Responsibilities When You Move and ProtectYourMove.gov valuation guidance; 49 CFR Part 375 (consumer protection / valuation) and 49 CFR Part 370 (claims processing, 9-month filing / 30-day acknowledgment / 120-day resolution); FMCSA $100-per-pound extraordinary-value rule; California Bureau of Household Goods and Services (BHGS) Maximum Rate Tariff 4 (MAX 4) and household-mover FAQs; California Public Utilities Commission enforcement actions on intrastate valuation. Rules and rates change; confirm current details with the FMCSA, BHGS, and your mover, and consult a licensed insurance agent before buying separate coverage.