You’re preparing for a big move, and you want to hire the best moving company to get the job done. But are you concerned about how to read a moving contract before signing with your chosen mover? Moving contracts are more than just pieces of paper—they’re legally binding contracts that spell out the terms and conditions of your move, so it’s crucial you feel comfortable before you sign on the dotted line and make things official.

Moving contracts are designed to protect you and your moving company, but they only serve their purpose if you know what’s written inside them. Skipping over the fine print can lead to unwanted surprises, such as extra fees, liabilities, and more. By investing time upfront to review each section of your moving contract, you can ensure you avoid any hiccups and your move goes smoothly. Let’s break down the key sections of a typical moving contract so you can move forward with confidence and peace of mind.

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Key Sections of a Moving Contract

Each moving contract has key sections you should understand before proceeding with your move. By familiarizing yourself with the following components of the moving contract, you’ll better understand your rights, protections, and responsibilities.

Description and Scope of Services

Your moving contract’s description and scope of services section will contain a detailed list of all the moving services your mover will perform. These services may include the following:

• Packing your belongings
• Loading your items onto the moving truck
• Transporting everything to your final destination
• Unloading your belongings
• Unpacking all of your items

Double-check that every service you agreed upon with your moving company is listed in this section of your moving contract. If you’ve arranged for additional services, such as temporary storage or packing fragile and high-value items, ensure those are included as well. 

Any limitations and exclusions will be outlined in this section, and it’s important that you review what can and can’t be transported before moving day arrives.

Payment Terms

When reviewing the payment terms in your moving contract, you may come across the following types of estimates:

Non-Binding Estimates

Non-binding estimates are based on the approximate weight of your belongings and which services you’ve chosen to pay for. Some moving companies ask you to provide an inventory list so they can calculate the total weight of your belongings, while others complete an in-home survey or virtual walkthrough and create the list themselves. 

If the actual weight of your household goods ends up being lighter than anticipated, you’ll pay less than your estimate. If your items are heavier, you’ll have to pay the extra cost to transport them.

Binding Estimates

Binding estimates lock you in at a specific cost that is based on the weight of your belongings and agreed-upon services. They’re often priced higher than non-binding estimates because your moving company wants to protect itself and cover potential variations. Plus, if your items weigh less than estimated, you won’t save any money.

Binding Not-To-Exceed Estimates

Movers that offer binding not-to-exceed estimates, or guaranteed not-to-exceed estimates, will provide a maximum cost for your move. If your belongings weigh less than estimated, you’ll pay a lower cost, but if they weigh more, you won’t pay more than the maximum total they stated. If your mover offers this type of estimate, we encourage you to accept it, as there are little to no drawbacks.

Liability and Valuation Coverage

The liability and valuation coverage section is one of the most important, yet potentially confusing, parts of the moving contract. This is where your moving company will outline who’s responsible in case of loss or damage to your belongings. Accidents happen, and you want to know your items are protected. The two primary coverage types you should be aware of are the following:

• Released value protection: All moving companies are required by federal law to offer free released value protection to their customers. Under this option, the moving company’s liability is limited to 60 cents per pound per item. While this provides some level of compensation in case your belongings are lost or damaged, it will often fall short of the actual value of your items.  
• Full value protection: Movers must also legally offer full value protection as a liability option. With this type of coverage, the moving company is responsible for repairing, replacing, or making a cash settlement for the current market value of any lost or damaged items. While this coverage option comes at an additional charge, it could provide you with greater peace of mind during your relocation. 

In some cases, even full value protection may not cover all your belongings. For high-value items, ask about additional coverage through your moving company or consider purchasing insurance through a third-party provider. This will ensure all your belongings are fully protected against any unforeseen circumstances during your move.

Dispute Resolution

Disputes between customers and moving companies can occasionally arise, so it’s important to be prepared and understand the dispute resolution process. If you find yourself in this situation, start by looking for information in your moving contract about the company’s complaint handling procedures. All reputable moving companies will have a step-by-step process for addressing customer complaints. This usually includes contacting customer service, submitting a written complaint, and allowing the company to respond in a timely manner. 

Many movers include mandatory arbitration clauses. These clauses require that disputes be handled through arbitration rather than in court. While arbitration is often quicker and cheaper than going to court, it means you’ll waive your right to a jury trial. Ensure you fully understand these procedures before signing your moving contract.

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Important Moving Contract Terms To Know

When reviewing your moving contract, you may come across moving terms that you’re unfamiliar with. Don’t worry—you’re not alone. Here are definitions for some of the most important terms you’ll come across:

• Accessorial charges: These charges are fees for additional services, such as temporary storage and fragile item packing.
• Arbitration clause: An arbitration clause is a contract provision that requires disputes to be resolved in arbitration rather than in court. This process is often quick.
• Bill of lading: The bill of lading is the official contract between you and your moving company that details the services to be provided, the moving schedule, and all moving costs. This is often simply referred to as the moving contract.
• Broker: A broker is a company that schedules the transportation of your belongings with a registered moving company.
• Carrier: This is the moving company responsible for transporting your belongings from one location to another.
• Estimate: An estimate is an approximate calculation of the cost for your chosen moving services based on the weight of your items. Estimates can be binding, non-binding, or not-to-exceed.
• Full value insurance: This is comprehensive coverage offered by the carrier where the moving company is liable for the current market value of any lost or damaged items, with options to repair, replace, or compensate.
• High-value article: This is an item that is valued at more than $100 per pound, such as a piece of jewelry, an antique, or a collectible.
• Inventory: This is a detailed list of all items being moved, including their condition and weight. Inventory is used for tracking and insurance purposes.
• Line-haul charges: These charges are the cost of transporting your belongings from your old home to your new home, typically calculated by weight and distance. They are often incurred during long-distance or interstate moves.
• Order for service: The order for service document is attached to the bill of lading and authorizes the moving company to perform its services. It details the chosen liability, pickup and delivery dates, and any special moving instructions.
• Released value insurance: This is basic liability coverage offered by the moving company at no extra cost, limiting the mover’s liability to 60 cents per pound per item.
• Valuation: This is the value you declare for your belongings, which determines the level of liability the moving company assumes in case of loss or damage.
• Weight addendum: A weight addendum is added to the moving contract, and it outlines the actual weight of your shipment and any adjustments to the cost based on this weight. 

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Red Flags in Moving Contracts

While many moving companies are reputable and operate with integrity, some may use deceptive or unfair practices. Before you sign a moving contract, be sure to look out for the following red flags that could indicate a company is a scam:

• Blank or incomplete contracts: Never sign a contract that has blank spaces or missing information. Dishonest movers may fill in these blanks with information after you’ve signed, leading to unexpected charges and conditions. 
• Extremely low estimates: If an estimate seems too good to be true, it likely is. Lowball estimates are a tactic used to lure customers in, only for the final bill to be much higher than expected.
• Lack of a physical business address or license number: A mover without a physical address or license number may be a fly-by-night operation that could disappear if issues arise.
• Large deposit requirements: Be wary of companies that demand large upfront deposits, as most reputable movers typically request a small deposit or none at all.
• Limited liability for lost or damaged items: If a company only offers basic liability coverage, you may be left with minimal compensation for lost or damaged items.
• Poor reviews or no references: If you research a moving company and come across several complaints and unsatisfied customers, proceed with caution.
• Pressure tactics: Beware of companies that pressure you to quickly sign a moving contract or avoid answering your questions. Professional movers will always walk you through the process and explain everything you need to know before signing a contract.

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Tips for Negotiating a Moving Contract

A moving contract isn’t set in stone until you sign it, so feel free to negotiate with your movers. Here are a few tips for getting the best deals:

• Ask about discounts and promotions: Ask if the moving company offers any discounts or promotions, such as seasonal deals, military discounts, or reduced rates for booking in advance.
• Clarify payment terms: Ensure you understand whether you have a binding, non-binding, or not-to-exceed estimate—and request the latter. 
• Get multiple estimates: Request estimates from at least three movers to compare pricing. You could also use offers as leverage to negotiate the best deal. 
• Negotiate liability coverage: Discuss available liability coverage options and see if you can get better terms or lower rates for full-value protection.

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Questions To Ask Before Signing a Moving Contract

We recommend asking for detailed answers to the following questions before you sign your moving contract:

• Are you licensed and insured?
• How long have you been in business?
• What services are included in your estimate?
• Are there any additional fees or charges?
• What is your claims process for lost or damaged items?
• What happens if the moving truck breaks down or encounters bad weather?
• What are the available payment options?
• What type of liability insurance is included, and do you offer additional coverage options?

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Our Conclusion

Now that we’ve gone through how to read a moving contract, you can work with your moving company to receive the best possible deal on your relocation services. Don’t be afraid to ask questions and negotiate better terms. As long as you carefully review the key sections of your moving document, brush up on your moving terms, and watch out for any red flags, you can feel confident signing your moving contract and officially hiring your mover.

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FAQ About How To Read a Moving Contract

Do you need valuation protection?

Value protection is always a good idea to protect your assets. Basic valuation coverage is free, federally mandated, and offered by all moving companies. Whether or not you need additional insurance, such as full value insurance, depends on the belongings your moving company will be transporting and your comfort level with potential loss or damage to those items.

What should I look for in a moving contract?

When reviewing your moving contract, look for five key components—a price estimate, a detailed inventory list, payment terms, insurance coverage options, and services provided. Look for any red flags that may indicate the company is a scam.

Should I purchase additional insurance for my move?

Whether or not you should purchase additional moving insurance depends on several factors. If you’re moving large pieces of furniture, such as mattresses, bed frames, and couches, or high-value items, such as jewelry and collectibles, additional insurance is likely a good idea. If you’re only moving small items and personal belongings, you may not need additional insurance.

How are moving quotes calculated?

Moving quotes are generally calculated based on weight and mileage for long-distance interstate and intrastate moves. If you’re only moving a short distance, your mover may have an hourly rate instead. Many movers offer free quotes for your convenience.

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