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Moving insurance may very well be the last thing on your mind as you prepare for your move. After all, you have so much to do, and you may wonder if moving insurance is worth it. Read on for information on what you need to know about moving insurance in Australia.
This guide defines moving insurance and how it works. It discusses the levels of moving insurance covers, types of moving insurance, and why you should go for transit insurance. You can also learn about moving insurance costs and how to find the best removal insurance for moving.
What is Moving Insurance?
Moving insurance is similar to travel insurance, only that it is designed to protect your belongings during a move. Moving insurance is a type of cover that protects you in cases of damage or loss of your belongings while moving.
This means that moving insurance protects you from unexpected losses. Removal insurance also relieves financial stress when unforeseen damage or loss occurs.
Is Removal Insurance Worth It?
There can be quite a distance between cities in Australia. This can increase the uncertainties during the moving process. Transit insurance will offer protection if your possessions aren't insured if they get lost or damaged.
How Moving Insurance Covers Work
You or the insurance provider value your belongings. After that, the provider will offer you a cover rate in line with the expected replacement cost. Depending on the belonging or item, the provider may offer a repair if possible.
Your provider can make different levels of coverage available for you to choose from. It is wise to properly weigh the policies offered before deciding on one.
Levels of Moving Insurance Covers
The level of coverage you choose for your moving insurance can depend on your belongings and the circumstances of your move. Most insurance policies generally cover basic belongings such as furniture and standard electronics.
On the other hand, you may need a different policy option to cover speciality equipment like medical or lighting equipment. Similarly, you must check your policy to see if it covers different needs like storage.
You may need such a provision if you need a place to store your belongings as protection for longer moves. One recommendation is to transport valuables such as jewellery yourself, as moving insurance policies usually do not cover them.
Types of Moving Insurance
Regarding professional removals, you can choose from two main types of moving insurance. They are full coverage insurance and restricted coverage insurance. However, other types of moving insurance also exist, and they are discussed below.
Full cover insurance
You can go for a full cover. This protects you from every loss or damage during your move.
Restricted cover insurance
A restricted cover offers protection for your belongings in specific events or circumstances. This can be in the form of a traffic accident or flood.
Home contents insurance
You may already have a home contents insurance policy. However, you still need to check what it covers and leaves out. This is because it tends to cover only some of your belongings for transit and storage during house moves.
Storage insurance
Many removal insurance covers provide protection for your possessions even when you are in temporary accommodation. This option extends for 30 days.
Customised insurance
It is possible to customise an insurance policy to meet your needs.
Removalist insurance
Your professional removal company may provide some form of insurance. However, you may see fit to take out separate removalist insurance. This will give you coverage for unexpected situations the removal company's insurance policy does not cover.
You should ensure your removalist is well-qualified and provides insurance. The requirement for accreditation of removalists to perform professional removals includes the following:
- Public liability insurance
- Motor vehicle insurance
- Carriers liability insurance
Standalone transit insurance
You can get standalone transit insurance from a general insurance company. This can be purchased separately from your arrangement with your removal company. Standalone travel insurance can even offer storage options.
However, you should know that the coverage of some transit insurance policies is quite similar to that of contents insurance or removalist insurance policies. Generally, transit insurance covers loss or damage to goods arising from the following situations:
- While being packed and unpacked.
- While in transit, such as accidents, theft, or fires.
- During loading or unloading from moving trucks.
- Mishandling of goods or belongings caused by removalists.
Is Home and Contents Insurance Cover Enough?
As each insurance policy differs, you must confirm this with your home and content insurance policy. There are contents insurance policies that can cover your belongings during transit. Alternatively, you can get an answer from your insurer.
However, conditions may be attached to such home and content insurance policies. For example, the cover may only be under certain circumstances or only when you use professional movers.
Am I Covered for Moving Overseas?
You'll likely need to take out removalist insurance specifically for your overseas move. This is because you won't get cover for your items when they leave the country. This is the case no matter the transit provisions in home contents insurance covers.
Transit Insurance vs Contents Insurance
Remember that your belongings may not be adequately covered by your contents insurance when moving house. This is because of the likely conditions that will be attached. For instance, some contents insurance policies will not cover your move from your home to the moving truck.
Consequently, you should get removal or transit insurance. It can cover your belongings from moving them from your home until they get to your new home or rental property. Moreover, removal insurance policies protect your possessions in storage until you move them to your new home.
Why opt for transit insurance cover?
There are different types of insurance covers, including public liability insurance and carriers liability insurance. You can get such covers from professional removal companies. However, it is much better to go for a transit insurance cover.
Unlike the other types of insurance covers, a transit insurance cover applies when an unexpected accident or weather event occurs. It is not restricted to only damage or loss due to the removal company's fault.
Facts About Moving Insurance Costs
Moving insurance costs depend on the level of coverage you need and the possibility of damage or loss. In addition, it depends on the insurance provider. For instance, the removal insurance costs from a removalist company differ from those you get through your home and contents insurance coverage.
Meanwhile, transit insurance costs can also depend on your move's size, the travelling distance, and the value of your goods. You can use the replacement cost amount insured for your products and the policy duration to calculate moving insurance rates.
Moving Insurance FAQs
Does removal company insurance cover my move?
If your removal company provides insurance here, it will likely be restricted cover insurance. Read the Product Disclosure Statement (PDS) to determine the cover level provided. If insufficient, you may have to get a specific full protection policy.
When is loss or damage not the removalist's fault?
The following circumstances are not classified as the removal company's fault:
- Items that break upon arrival and after being properly secured in the truck.
- An item that is lost or stolen while unloading or in storage.
- Accidental damages that the driver does not cause.
- Unexpected weather conditions that result in a fire or flood.
What are my insurance options during a move?
If you want to insure your belongings when you move house, you can go for the following:
- Contents insurance
- Removalist insurance
- Transit insurance
How do I find the best removal insurance?
You can choose a moving insurance cover that meets your needs. You could opt for insurance coverage from removalists qualified to sell financial products.
Alternatively, you can take out moving covers from specialised insurers. The truth about removal insurance is that not all removalists are qualified and legally authorised to provide removal insurance.
Why hire insured moving services?
It is best to hire professional movers if you want to cover your belongings from mishaps. This way, you can get moving insurance, and they can get your items professionally packed and moved.
Besides, there's the added advantage of enjoying storage if your move takes a while. At the same time, they can give you advice from home insurance brokers.
Get Help from Professional Removalists
You have taken the first step to learning more about moving insurance in Australia. You can contact a removalist company for help with moving and moving insurance. You can depend on them for custom moving solutions like white glove moving. Ultimately, they can help ensure that your moving insurance provides peace of mind.
