How to Read a Moving Contract

Hiring a professional moving company can save you a lot of time and stress. We’ve talked quite a bit about how to choose your movers, including what you should look for in a moving company and the five important questions you should ask before you hire one. Any moving company that you hire should be licensed, insured, and well-reviewed. They should also provide you with a sound moving contract.

A moving contract (also referred to as an order for service) outlines the terms and conditions of your move. In it, both parties are agreeing to certain specifics that dictate the moving service that’s going to be provided. All reputable professional moving companies provide their clients with a moving contract. If a company doesn’t offer you a moving contract, hire someone else.

A moving contract, just like any other contract, is a legally binding document. Before you sign, it’s important that you understand what you’re looking at and what it all means. In this article, we’ll review different parts of a moving contract so that you know what to expect. Your contract may look a bit different, but it should always include the features overviewed below.

Description of Services

This is typically the first section that you’ll see in a moving contract. It should list all of the services they provide for you, as well as your initial and final destinations. Make sure that all of the services you are expecting are included in this section. You can amend it if there’s an additional service that you would like to be provided; however, note that this will likely raise your estimate.

Scope of Services

Think of this section as a timeline of events that will take place during your service. It’s also where expectations are set for both parties. The scope of services section will often be broken down into a numbered list that goes over each step. For example: inventorying, loading the truck, and unloading the truck. You may see additional information regarding what’s required of you like making sure you agree that all of your items are packed up and ready to go when the movers arrive. The service provider (your movers) will also agree to take proper care not to damage your belongings upon loading and unloading the truck.

Payment

In this section, you’ll see information regarding how you are to pay for your service, when you are expected to pay it, and what happens if you don’t. Depending on the verbal agreements that you have made with the moving company that you hired, your moving contract may include a set fee for your service, or it may include a breakdown of how the service is going to be priced (i.e. fixed rate vs. hourly rate and how those will be calculated). Pay close attention to this section. Once you sign on the dotted line you are legally agreeing to pay the amount disclosed on the contract or follow the set pricing structure. If you have a question about payments or pricing, it’s important to ask them before you sign, not after.

Term

This short section just states that the moving contract is valid until completion of the services dictated within it. There’s not much to worry about here, but read it over just to make sure that you fully understand the term of the contract.

Confidentiality

This is a standard part of most contracts, and not specific to just moving contracts. The confidentiality section simply states that the moving company will not share any information about the client during the term of the contract, such as any records, documents, or notes related to your move.

Other Moving Contract Terms You Should Know

While the sections above encompass the general outline that you’ll probably find in your moving contract, there are other terms and conditions within it that you may not have come across before. You may also be provided with additional binding contracts. Below, we’ll go over some of the most common (and confusing) moving contract and moving contract-related terms to take the guesswork out of figuring out exactly what it is that you’re agreeing to.

Additional charges. You may see a section or sub-section on your moving contract that lists additional charges you might face, also sometimes referred to as accessorial charges. These charges are extra fees for certain variables related to your move, such as if your movers have to navigate their truck through areas not fit for large vehicles or if you’re not ready when they arrive and they have to pack some of your belongings.

Bill of lading. A bill of lading is a copy of your moving contract that you receive on moving day. It will include the sections overviewed above and should be held on to since it also serves as the receipt for your service.

Binding estimate. A binding estimate is a guarantee that the price listed on the moving contract is the price that you pay. In order to change this amount, a moving company must submit an amendment to the contract and both parties must sign it.

Full-value replacement and released-value replacement. Moving companies offer two levels of protection for their clients, full-value replacement coverage and released-value replacement coverage. Look to your provided documentation to see which one your mover is agreeing to. Under full-value replacement, you’ll receive the full value or replacement value of any damaged items, up to about $100 a pound. Under released-value replacement, you’ll get a much lower amount—about $0.60 a pound.

High-value inventory. Your mover may decide to include a high-value inventory list. This list should include a list of the items they’ll be moving and the values of said items. These items may have additional costs related to packing or moving them, as well as unique terms.

Line haul charges. These charges refer to the distance that the moving company will be transporting your belongings and the gross weight of the load.

Non-binding estimate. A non-binding estimate is an estimate of payment that may change over the course of the service, meaning the amount that you see listed is not a guarantee of what you owe. Fortunately, in 2013 the Federal Motor Carrier Safety Administration passed the 110 percent rule, which states that the final amount you owe may not be more than 110% of the estimated price.

Valuation. The declared value of what your belongings are worth. In the case of damages, your movers will not be responsible for more than the valuation amount.

Need to Hire Movers?

We can help with that! Use our free online list of movers to quickly and easily search reputable movers in your area. we recommend reaching out to at least three different moving companies to get quotes so that you can ensure you are getting the best price possible. If you have any questions about what a company includes or doesn’t include in their moving contracts (such as whether their estimates are binding or non-binding) be sure to ask that as well when you reach out.