“Licensed and insured” are two of the most commonly used phrases in moving company marketing, and they’re also two of the most commonly misunderstood. When a Florida mover tells you they’re insured, that insurance primarily protects their business, not your belongings. Understanding what actually covers your items during a move, and how much, is one of the most important things you can do before signing any moving contract.

The Difference Between Valuation Coverage and Moving Insurance

Valuation coverage and moving insurance are not the same thing, and confusing them is one of the most common mistakes people make when planning a move. Valuation coverage is the mover’s contractual liability for your belongings, essentially, the maximum amount the moving company is legally responsible for if they damage or lose something. This coverage is regulated by federal law and must be offered by all licensed interstate moving companies. Moving insurance, by contrast, is a separate policy purchased from a third-party provider that covers losses the mover’s valuation doesn’t.

Critically, valuation coverage only applies when the moving company is negligent. Many people assume that because they hired a “licensed and insured” moving company, they have comprehensive coverage, but that’s rarely the case without purchasing additional protection.

Released Value Protection: The Free Option That Covers Very Little

Released Value Protection is the minimum coverage that moving companies are legally required to provide at no extra cost. Under Released Value Protection, the moving company’s liability is limited to $0.60 per pound per item.

The math on this is painful. A 50-pound television worth $1,200 gets damaged during the move. Under Released Value Protection: 50 pounds × $0.60 = $30 in compensation. That’s it. A 100-pound antique dresser worth $3,000 pays out $60. This is the free coverage, and it’s free because it covers almost nothing.

Florida law mandates that moving companies must offer valuation coverage for lost or damaged goods at no less than 60 cents per pound per article. That’s the floor. For interstate moves regulated by the FMCSA, this minimum is set by federal regulation.

Full Value Protection: The Comprehensive Option

Full Value Protection requires the mover to repair, replace, or pay the current market value for any damaged or lost item, your $3,000 dresser would be repaired to pre-move condition, replaced with an equivalent item, or settled at market value. Neither Released Value nor Full Value Protection is technically “insurance”, they are valuation coverage tiers regulated by the FMCSA under federal law.

Full Value Protection typically costs about 1% of the declared value of your shipment. If your belongings are worth $30,000, you’d pay approximately $300 for Full Value Protection. That’s a meaningful cost, but it’s often far less than the out-of-pocket replacement cost of a single high-value item damaged in transit.

If you do not select Released Value in writing, the mover is required by federal law to automatically transport your shipment under Full Value Protection. This means if you don’t actively opt out of Full Value Protection, you have it, but you’ll be charged for it. Read your contract carefully to understand which option you’ve selected.

Third-Party Moving Insurance: The Additional Layer

Both Released Value and Full Value Protection have limitations, they only cover loss or damage caused by the mover’s negligence, and there are exclusions and deductibles in the full value option. Third-party moving insurance from an independent provider offers coverage for events that mover-provided plans don’t cover, such as accidental damage during unpacking. These policies often allow for customized coverage levels and can fill gaps that neither federal valuation tier addresses.

Homeowners insurance may also provide some coverage during a move, but the specifics vary widely between policies. Most homeowners insurance covers theft and fire damage, but damage during transport due to mishandling, poor packaging, or vibrations is typically not covered. Before your move, check your Coverage C (personal property), off-premises limits, sublimits, and deductibles to understand exactly what applies.

For high-value items, fine art, antiques, jewelry, collectibles, high-end electronics, a dedicated third-party policy that specifically names those items is the most reliable protection.

What Florida Specifically Requires

For interstate moves, any move crossing a state line, FMCSA regulations require the carrier to hold a minimum of $750,000 in liability coverage, with a BMC-91 filing proving this insurance to the federal government.

For intrastate moves within Florida, including moves from Gainesville to Ocala, or within Alachua or Marion County, Florida law governs the requirements. Florida mandates that movers offer valuation coverage under state law, though the specific terms may differ from federal FMCSA requirements. Ask your mover specifically what coverage options are available for your local Florida move.

Practical Checklist Before Signing

Before signing any Florida moving contract, work through these questions:

Which valuation option am I choosing, Released Value or Full Value Protection, and is that documented in the contract? If I’m choosing Released Value, do I understand that I’m capped at $0.60 per pound per item for any loss or damage? Does my homeowners or renters insurance provide any coverage during transit, and what are the limits? Do I have high-value items that should be covered by a third-party policy? Has the mover provided proof of their cargo and liability insurance upon request?

Your selection of valuation coverage must be made before pickup and documented in the moving paperwork, specifically in the Bill of Lading. Once the truck leaves, your options are locked in.

The most important takeaway: the default free coverage provides almost no real protection. For any move involving items of genuine value, either upgrading to Full Value Protection or purchasing a third-party policy is worth serious consideration. Talk to Later Gator Moving LLC about the coverage options available for your specific move before the truck is loaded.