Why Your Moving Broker's $75,000 Bond May Not Protect You

Moving brokers are required to carry a $75,000 surety bond. Most consumers assume this bond insures their belongings. It does not. This article explains what the bond actually covers, why it falls short for most moves, and what consumers can do to protect themselves.

The surety bond is a financial guarantee that the broker will fulfill their contractual obligations. If the broker takes your money and disappears, or refuses to arrange the move after accepting payment, you can file a claim against the bond. It does NOT cover damaged, lost, or stolen belongings during transit.

A 2BR household is typically valued at $30,000 to $60,000. A 3BR at $45,000 to $100,000. The $75,000 bond cap means full recovery is possible for a small move but impossible for a larger one. And remember: the bond covers contractual failure, not property damage. For property damage, you need the actual carrier's insurance, not the broker's bond.

When you hire a broker, the broker dispatches a carrier to do the actual move. The carrier's insurance (not the broker's bond) covers your belongings during transit. But you have no relationship with the carrier. You may not even know who they are until pickup day. If the carrier's insurance lapses, you have no recourse through the broker's bond for property damage.

Trunk's analysis of FMCSA data shows that brokers represent 17% to 38% of movers depending on the state. Florida has the highest concentration at 1,082 brokers. Many advertise as "movers" without disclosing their broker status. The only way to verify: check the FMCSA filing. If it says "Broker" under authority type, they don't own trucks.

Ask directly: "Are you a broker or a carrier?" If they hesitate, check their USDOT at safer.fmcsa.dot.gov. Verify the actual carrier who will show up on moving day. Get the carrier's USDOT and verify their insurance independently. Consider booking directly with a carrier to eliminate the broker layer entirely.