Most people assume that once a moving company loads their belongings onto a truck, those belongings are fully protected. That assumption is understandable, but it's also one of the most common and costly misconceptions in the moving industry.
Moving insurance in Canada is not as comprehensive as most people expect. The default coverage offered by virtually every moving company is minimal, and the gap between what people think they're getting and what they're actually entitled to can be thousands of dollars wide.
Before you book a moving company, understanding how moving coverage works, what it protects, and where it falls short will save you from a very unpleasant surprise on moving day.
Moving Insurance vs. Moving Valuation Coverage
The first thing to understand is that what most people call "moving insurance" is technically called valuation coverage. It's not an insurance product in the traditional sense. It's a contractual declaration of how much liability the moving company accepts if your goods are lost or damaged.
True moving insurance is a separate product, typically purchased through a third-party insurer. The distinction matters because valuation coverage is governed by the moving contract, not by provincial insurance regulations. The protections it offers are whatever the contract says, not what consumer insurance law might otherwise require.
When you get a moving quote and the company mentions coverage, ask specifically whether they're referring to valuation coverage in the contract or a separate insurance product. The answer will shape your entire conversation about protection.
The Two Standard Types of Coverage Offered by Canadian Movers
Released Value Protection
Released Value Protection is the default coverage included in nearly every moving contract in Canada. It costs nothing extra, which is the only positive thing to say about it.
Under Released Value Protection, the moving company's liability is calculated by weight, not by value. The standard rate is 60 cents per pound per article. That means if movers damage a 15-pound laptop worth $2,000, you are entitled to $9.00 in compensation.
This is not a typo. Nine dollars.
For a long-distance move from Toronto to Calgary, or even a local move across Vancouver, this level of coverage is essentially no protection at all for anyone with standard household goods. It exists because it allows moving companies to offer low base rates while technically providing "coverage."
Full Value Protection
Full Value Protection is the meaningful upgrade. Under this option, the moving company is responsible for the full replacement value of any item that is lost, damaged, or destroyed. If an item cannot be repaired, the mover must either replace it with a comparable item or pay you its current market value.
This coverage costs extra, typically calculated as a percentage of the total declared value of your shipment. For a household with $40,000 worth of goods, expect to pay somewhere between $400 and $1,200 for Full Value Protection depending on the company and the deductible you choose.
Most reputable Canadian moving companies will offer Full Value Protection and explain it clearly. If a company doesn't mention it or discourages you from purchasing it, that's worth noting before you sign anything.
What Moving Coverage Actually Protects
Even with Full Value Protection, coverage is not unlimited or unconditional. Here is what is typically included.
Damage during transit is covered. If items are broken, scratched, or crushed while inside the moving truck due to shifting loads or impact, you can file a claim.
Loss during the move is covered. If items go missing between your origin address and your destination, you are entitled to compensation under Full Value Protection.
Damage during loading and unloading is generally covered, provided the movers caused the damage and it is documented before they leave.
Fire or collision involving the truck is covered. If the moving vehicle is in an accident or catches fire, your goods are protected.
What Moving Coverage Does NOT Protect
This is the part of the conversation that surprises most people, and it's the most important section to read carefully.
Items You Pack Yourself
This is the most significant exclusion in most moving contracts. When you pack your own boxes, the mover accepts no liability for what happens to the contents. This is called the PBO exclusion (Packed By Owner).
If a mover drops a box you packed and your dishes break, they will point to the PBO clause and decline the claim. If you want full coverage for items in boxes, the movers need to pack those boxes. This adds cost to the move, but it closes one of the largest gaps in your protection.
High-Value Items Not Declared in Advance
Most moving contracts set a per-item value limit, often somewhere between $500 and $1,000 per article, unless you declare items of higher value in writing before the move begins. Antiques, fine art, collectible items, and high-end electronics that are not declared in advance will be subject to that cap even if you have Full Value Protection.
Go through your home before moving day, identify anything with significant value, and make sure it's listed explicitly on your moving inventory with a stated value.
Mechanical and Electrical Failure Without Visible Damage
If your television works perfectly at the old house and refuses to turn on at the new one, but there is no visible physical damage, most movers will not accept a claim. Proving that internal damage occurred during transit without external evidence is extremely difficult, and most contracts exclude this scenario explicitly.
Jewellery, Cash, and Important Documents
These are excluded from moving coverage almost universally. Keep passports, financial records, irreplaceable documents, and valuable jewellery with you personally throughout the move. Do not pack them into the moving truck under any circumstances.
Pre-Existing Damage
Items that were already chipped, cracked, or damaged before the move are not eligible for a claim. This is why reputable professional movers conduct a condition report before loading. Review that report carefully and note any items that are already imperfect so there is no dispute later.
Items Left in Furniture Drawers
Many people leave clothing, small items, or personal effects in furniture drawers during a move. Most contracts exclude these items from coverage because they were not inventoried or packed properly. Empty all drawers before moving day.
Does Your Home or Tenant Insurance Cover Your Move?
It might, but don't assume. Some home and tenant insurance policies in Canada include a transit extension that covers belongings during a move for a limited window, often 30 days. Call your insurance broker before your move and ask these three questions directly: Does my policy cover goods in transit during a move? What is the deductible? Are there exclusions for high-value items?
If your policy does include transit coverage, find out whether it coordinates with or replaces the moving company's coverage, and which applies first in the event of a claim.
Third-Party Moving Insurance: The Option Most People Don't Know About
Third-party moving insurance is a standalone insurance product purchased through a broker or specialty insurer, completely separate from whatever coverage your moving company offers. It's used most often for long-distance moves, international relocations, and moves involving high-value items.
The advantages are meaningful. Third-party policies often cover PBO items, include electronics failure caused by transit, extend coverage during storage, and offer higher per-item limits than most moving company contracts.
If you own antiques, fine art, instruments, or any single item worth more than $2,000, it's worth getting a third-party quote before moving day. Your moving company may be able to refer you to a preferred insurer.
How to File a Moving Insurance Claim in Canada
If damage occurs, the steps you take in the first few hours matter significantly.
Document everything before and during unloading. Photograph boxes, furniture, and fragile items before they come off the truck. If you notice damage, note it on the Bill of Lading before you sign it. Signing without noting damage can affect your ability to claim later.
Report the damage in writing as quickly as possible. Most moving contracts require written notice within 24 to 72 hours of delivery. Check your contract for the specific window and don't let it pass.
Keep all receipts, photos, and purchase records for damaged items. The stronger your documentation, the stronger your claim. Follow up every conversation with an email so there is a written record of the exchange.
Move With the Right Protection in Place
Understanding your coverage before moving day, not after something goes wrong, is what separates a stressful move from a smooth one. Take the time to read your contract, ask about Full Value Protection, declare high-value items, and consider third-party insurance for anything irreplaceable.
At Movers.ca, we work with vetted, professional moving companies across Canada who are transparent about coverage, licensed to operate, and experienced with moves of every size and distance.
Get your free moving quote today and ask about coverage options
Your belongings took years to accumulate. A few minutes of due diligence before moving day is all it takes to protect them properly.
Moving insurance · Canada
Frequently asked questions
Coverage rules, real costs, and what to do when a claim goes sideways — the essentials before you decide how to protect your move.
No. Moving companies aren't legally required to offer insurance, and you aren't required to buy it. But moving with no coverage is a real financial risk — at a minimum, understand exactly what Released Value Protection covers before you decide to rely on it.
Valuation coverage is a clause in your moving contract that sets the mover's liability — it's governed by contract law. Moving insurance is a separate insurance product with its own policy terms, governed by insurance law, which generally offers stronger consumer protections.
Most movers charge between one and three percent of your shipment's declared value. On a $30,000 shipment, that's roughly $300 to $900. Choosing a deductible is often an option and can lower the premium.
Generally not. Moving coverage usually applies only while goods are in active transit. Once items go into a storage facility — even one run by your moving company — you'll likely need a separate storage insurance policy to stay protected.
Start by requesting the denial in writing with a specific reason, then review your contract to confirm whether that reason holds up under the terms. If you believe it's incorrect, you can escalate to the Better Business Bureau, your provincial consumer protection office, or — for disputes under $5,000 — the online Civil Resolution Tribunal available in British Columbia and other provinces.
Still unsure what coverage you need?
A Movers.ca advisor can walk you through your options for free.