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For Californians preparing for a move, one of the most confusing topics isn’t how many boxes to buy or how to get a couch up three flights of stairs. It’s the fine print around what happens if belongings are damaged in transit.
Many people assume their movers provide “insurance” for household goods. In reality, most licensed movers in California are required to provide coverage, which is different from insurance and comes with important limitations.
Insurance vs. coverage
The first distinction is that moving insurance policies are sold by insurance companies, not by moving companies. Sometimes, homeowner’s or renter’s insurance may cover a portion of losses during relocation, but those policies vary. Third-party insurers also allow consumers to cover individual high-value items, such as artwork or antiques.
By contrast, moving coverage is regulated by the California Bureau of Household Goods and Services (BHGS). Licensed movers must offer customers three types of coverage, each with different levels of protection.
Three types of moving coverage in California
- Basic Coverage – Provided at no cost, this option reimburses 60 cents per pound, per damaged article. For example, if a 20-pound television is broken, the payout would be just $12 — regardless of replacement cost.
- Actual Cash Value Protection (ACVP) – Typically $1 per $100 of declared value, this coverage is based on the current market value of items. “In theory, it sounds fair, but in practice, it’s difficult to agree on how much a 3-year-old marble table is worth,” said Emily N., a manager with Got2Move, a licensed moving company serving the Bay Area and Los Angeles.
- Full Value Protection (FVP) – Around $2 per $100 of declared value, this coverage obligates the mover to repair, replace, or compensate for the full declared value of an item. If a chair valued at $999 is broken beyond repair, the mover may replace it with a comparable model or provide a cash settlement.
Importantly, coverage must be purchased for the entire shipment. Unlike third-party insurance, it can’t be applied selectively to just a few items.
Why full value protection is harder to get
In recent years, many underwriters have reduced their willingness to approve FVP policies in California, citing higher risks and fewer insurers operating in the state. This has left many consumers with only two realistic options: accept the free Basic Coverage or purchase third-party moving insurance separately.
According to Got2Move, consumers who want FVP must plan ahead. “We usually need at least five business days to submit a full inventory list for approval,” Emily N. explained. “It’s not something that can be added last minute.”
Prevention matters most
Even with the best coverage, preventing damage is always better than filing a claim. Movers emphasize crew training, furniture padding, protective wrapping, and careful packing of fragile items. Techniques such as “soft crating” — using extra layers of cardboard and cushioning around delicate parts — can reduce risks significantly.
Got2Move’s crews, for example, use protective blankets, shrink wrap, and custom padding for glass and electronics on every move, regardless of the coverage option chosen.
The bottom line
For California families planning a move, understanding the difference between moving coverage and moving insurance is essential. By knowing the options, asking questions in advance, and considering third-party policies when necessary, consumers can avoid unpleasant surprises and move with greater confidence.
Got2Move was founded in 2006 in San Francisco and has become one of the most reputable moving companies in the Bay Area. The Got2Move team specializes in seamless, stress-free local moves in the Bay Area and long-distance moving services in California.
Phone: (415) 936-4109 or (855) 936-4109
Email: info@got2move.com
California License: CAL-T200805 and CAL-T191707
Got2Move was founded in 2006 in San Francisco and has become one of the most reputable moving companies in the Bay Area. The Got2Move team specializes in seamless, stress-free local and long-distance moving services in California.
Phone: (415) 226-4081
Address: 801 Avenue H, Unit 789, San Francisco, CA 94130
Office Hours: Mon-Sun 9 AM to 5 PM
Email: info@got2move.com
California License: CAL-T200805 and CAL-T191707
Learn more about Got2Move
