Should I buy third-party moving insurance?
Quick Answer
Consider it if your belongings are worth more than $50,000 or you have items of high sentimental value. Third-party policies cost $100 to $500 and often provide broader coverage than full value protection, including coverage for owner-packed boxes.
Third-party moving insurance is a standalone policy purchased from an insurance company (not the mover). It can supplement or replace the mover's valuation coverage.
Advantages over full value protection: often covers owner-packed boxes (FVP may not), may include coverage for items in storage, can cover high-value items without a separate declaration, the claims process goes through an insurance company (potentially faster and more objective than the mover's process), and can cover losses the mover excludes (like acts of God in some policies).
Disadvantages: additional cost on top of moving expenses, you may still need released value or FVP (some policies are supplemental), and filing a claim with a third party adds another entity to coordinate with.
When third-party insurance makes sense: your belongings have a total replacement value over $50,000, you have high-value items (art, antiques, electronics, jewelry), you are packing yourself and want coverage for self-packed items, you are using a portable container or self-service move (where mover valuation may not apply), or you want broader coverage than what the mover offers.
Providers: MovingInsurance.com, Bakers International, and some homeowner's/renter's insurance riders. Costs range from $100 to $500 depending on the declared value and deductible.
Before purchasing: check your existing renter's or homeowner's insurance policy. Some policies cover belongings during a move (in transit). If yours does, you may already have the coverage you need. Call your insurer and ask specifically about "personal property in transit."