Frequently Asked Questions
How much does it cost to move?
If hiring professional movers for a relocation, you can expect to pay at least $1,000. As mentioned above, the average cost of a local household move is $1,250, and the average cost of a long distance move is $4,890. Of course, the cost of your move will depend on a number of factors including distance traveled, weight of belongings, move date, labor costs and any additional services needed such as insurance or packing.How much does valuation coverage cost?
All interstate movers are required by federal law to offer Released Value Protection and Full Value Protection to customers. The cost of Full Value Protection varies by mover, so be sure to ask your moving company for details. The most basic level of liability, Released Value Protection, is automatically included in the cost of your move. This basic protection covers 60 cents per pound per item. While this type of coverage won’t cost you anything extra, it is considered the bare minimum. Those looking for more comprehensive coverage should opt for Full Value Protection. This level of liability means that if the mover damages or loses a belonging, the mover must either replace your item or reimburse you for its current cash value.
Difference between Direct Carrier and Broker?
When you’re shopping for a full-service mover, you’ll probably notice that moving companies call themselves one of two things: moving brokers or moving carriers. But they rarely explain what either of these terms means. We think you should know exactly what you’re getting when you hire a mover, so we’ve broken them down for you.
Moving brokers, also called brokerages, are like travel agents for your move. They don’t own any moving trucks or hire moving staff. Instead, they coordinate your move with other companies. This process can make your move a little easier and cheaper since the broker manages all the logistics and gets quotes from multiple competing carriers. However, a lower price isn’t guaranteed, and some brokers are reportedly pretty shady.
Moving carriers, on the other hand, own their own moving van fleets, hire in-house moving staff, and facilitate moves themselves. This business model is a bit more transparent since it guarantees your belongings will be shipped by the same company you selected for your move. However, carriers can be more expensive than brokers, and they may require extra research and planning on your part. Though the differences between these two models may seem obvious, the boundary isn’t always black and white. For example, some companies are registered as both carriers and brokers. This allows them to change between the two roles depending on what a customer needs.
Can moving costs be deducted?
Yes! Save those receipts because your moving expenses could be tax-deductible. If donating household items to a charity before or after the move, be sure to itemize all belongings and record their current cash value on the donation receipt. You should be able to claim a tax deduction on these donations. In addition, those moving for work may be eligible to receive a tax deduction on moving expenses.
Are moving costs for a job tax-deductible?
Possibly. If you are moving for work, your moving expenses could be tax-deductible. According to the IRS, “if you moved due to a change in your job or business location, or because you started a new job or business, you may be able to deduct your reasonable moving expenses but not any expenses for meals.” The IRS claims that you can deduct these moving expenses if: 1) Your move closely relates to the start of work. 2) You meet the distance test. 3) You meet the time test. To deduct these expenses, you must fill out and submit IRS Form 3903.
What should I consider before hiring a moving company?
Before hiring a pricey moving company, be sure to consider whether or not the expense is worth the money. If the answer is no, consider less expensive DIY alternatives such as truck rentals or moving containers. However, if your budget is more flexible, and you’d like to save time and energy on the move, then hiring movers may be worth the price. Whatever you do, be sure to weigh the pros and cons of each choice carefully before deciding on a move method.
How are moving costs calculated?
The cost of an interstate or long distance move is determined by the weight of the shipment, the mileage between the origin and destination, and the labor costs. Calculating the cost of a local move is slightly different. Intrastate moves are based on a flat dollar amount per hour. Factors that affect this hourly rate include labor costs, services such as packing or climbing an excessive number of stairs, assembling furniture and extra add-ons. In addition, many local movers also offer customers a flat rate option. A flat rate is typically the moving company’s estimated number of hours the move will take, multiplied by their hourly rate. Many times this fixed price includes the cost of add-ons as well.
What is moving insurance?
Moving insurance works basically the same way as auto insurance. Just like you can get into a fender bender no matter how good a driver you are, moving accidents can happen to even the most careful people.
Moving insurance offers protection for your belongings that get damaged during a move. The details of what your insurance covers depend on your policy, but it can range anywhere from fires or floods to a mover accidentally dropping your new 70-inch TV.
Technically, moving companies can’t sell insurance, but under federal law they are required to provide valuation options. You can also get insurance from third-party insurance providers, which we’ll get into later.
Here are the three different options available to you:
Released value protection
Offers coverage up to $0.60 per pound for items
Doesn’t cover full market value
Comes standard in moving package
Full-value protection (FVP)
Gives full coverage on all your inventory
Repairs broken items
Replaces broken item with a similar one
Offers a cash settlement equal to the item’s market value
Doesn’t cover items of extraordinary value (more than $100 per pound)
Third-party insurance
Covers damage from natural disasters (e.g., floods, tornadoes)
Covers items of extraordinary value (more than $100 per pound)
Supplements value protection valuation
What is valuation?
Insurance can cover any damage done to your goods during the move, while valuation is the amount of liability a moving company takes if your belongings get damaged during transit. Coverage under valuation is much more limited than insurance and usually refers only to how much a company will reimburse you on an item.
Different moving companies offer different types of valuation. Below are the two most common forms of valuation.
Released value protection
Also referred to as basic coverage protection, this option offers bare minimum coverage and is included in intrastate moves and interstate moves. For intrastate moves, this option covers $0.30 per pound per item, and for interstate moves, it covers $0.60 per pound per item. For example, if you had a 100-pound dresser that broke during the move, you would receive $60 for it.
It’s important to note that your items won’t be covered as high as their market value, but this option is nice because it’s always included in the cost of your move.
Full-value protection (FVP)
This type of valuation—which costs extra—offers more extensive coverage than the basic coverage but is still not as comprehensive as insurance. With FVP, moving companies are liable for the current market value of your belongings and will offer three solutions if they break one of your belongings during a move:
Repair the item
Replace the item with a similar one
Offer a cash settlement equivalent to the broken item’s current market value