Anything can happen during a move, whether it's a short local move or a lengthy cross-country move. Items can get misplaced, damaged or even stolen at any point during the move. Thankfully, moving insurance coverage can help you replace or repair your belongings if anything happens to them. However, you'll need to pay close attention to the type of moving insurance you purchase. Understanding your options for moving insurance can help you protect your furniture, memorabilia, appliances and other belongings throughout the course of your move. 

Full Value Protection vs. Released Value Protection

Full Value Protection (FVP) and Released Value Protection (RVP) are the two most common types of valuation coverage that are usually offered by movers. Both types have their own sets of advantages and caveats.

FVP offers the most complete coverage for your belongings throughout the move. If any of your items are lost, damaged or stolen, the mover becomes liable for the full replacement value of the items in question. This excludes items that exceed the $100 per pound valuation threshold unless those items are specifically highlighted in the shipping documents prior to the move.

RVP coverage usually costs less than its FVP counterpart, and in some cases, it may even be offered free of charge by your moving company. However, RVP offers less protection for your belongings than FVP coverage. Under this coverage, the moving company's liability for lost, damaged or stolen items is limited to a maximum of 60 cents per pound per article. This means that if you have a television or piece of furniture that's valued at thousands of dollars, you'll only receive a fraction of its value in compensation.

Keep in mind that the valuation coverage offered by most moving companies only applies to items that the movers themselves pack. If you pack your own items and have the moving company transport them, your moving company won't be held liable if they're damaged in transit. As a result, you may need some form of supplemental coverage to help bridge the liability gap if you decide to pack your own items prior to moving.     

Total Loss Only (TLO) Coverage

Some movers may offer Total Loss Only or TLO coverage to their customers. This option provides complete liability coverage for your belongings, but only when there's a complete loss. A "complete loss" usually means that the entire shipment was lost or destroyed during transit. This can happen if the moving van catches on fire, is stolen and unable to be recovered, or is swept away in a flood.

If your shipment is only partially damaged or only a single piece of that shipment is damaged, the mover won't be held liable for replacement or compensation. As a result, TLO coverage is usually cheaper than most Full Value Protection coverages.

Couldn't You Just Use Your Homeowner's Insurance?

If you have a homeowner's or renter's insurance policy, then you're probably wondering if you could use it instead of relying on a separate moving insurance policy. After all, a homeowner's insurance policy will cover your personal property before it leaves your old residence and after it arrives at your new residence.

But there's a glaring caveat to relying on your homeowner's insurance policy -- it won't cover your belongings while they're in transit, since they're considered to be under the care of the moving company. If anything happens to your belongings while they're being moved or stored by your movers, you're simply out of luck.

Most insurance providers offer trip transit insurance to bridge this noticeable gap. It covers your personal belongings against theft, loss, fire and other perils. However, it won't cover your items if they're accidentally broken during the trip.

For more options and advice on which kind of coverage is best for your needs, talk with local moving companies in your area.