What it is. Why you need it. What it covers.
Whether it’s our home, our car or our health, most of us realise that insurance is important.
Not only does it give a sense of security, or ‘peace of mind’, but it also helps ensure that things are taken care when they don’t go exactly as planned.
While it may not be the most well-known type of insurance, removal insurance, or rather moving insurance, is actually quite common.
What is moving insurance?
It’s pretty straightforward.
Moving insurance protects your personal possessions during a move. This could mean during the packing stage, the transport stage, the delivery stage, or all of the above.
Is it really necessary?
In my opinion, yes!
Sure, it’s a slight extra expense on top of moving, but take a moment to consider the alternative. A removalist is responsible for transporting some of your most important items, and whether we like to think about it or not, accidents and natural occurrences do sometimes happen.
While we rightly expect any good company to rely on expert team members to ensure our possessions are packed up correctly and efficiently, and then delivered in the same condition, there’s unfortunately always a risk.
Regrettably, solid packing materials and the utmost in care can’t completely avert every scenario, natural disasters included. That’s where removal insurance comes in, and the TOP 6 reasons why you too should consider purchasing moving insurance.
Reason #1: For personal coverage
It’s important to hire a good removalist, one who cares about your belongings and delivering them safely and securely.
Unfortunately, while a removal company likely holds its own insurance policy, it may not necessarily always cover any damage to YOUR belongings during the packing and transit process.
A moving insurance policy is an extra level of protection for your personal possessions.
If storage is a need during the move, you may also want to add that on to your moving insurance policy.
Reason #2: For damages
That brings us to the next good reason for purchasing moving insurance, which is for taking care of unintentional damage.
Again, accidents and natural occurrences do unfortunately sometimes happen.
If an item is damaged, scratched or even broken during a move, by purchasing moving insurance your belongings are covered.
Of course, all policies are different.
- Some provide full coverage
- Others provide more limited coverage
We’ll discuss more on that a little later.
Reason #3: For precious items/antiques
You may also want to specifically ensure that precious items or antiques are covered. You may be asking:
Do I need a full policy?
That depends.
Based on your own personal situation, you may only be in need of a policy that covers specifically named items.
For example, you may find a policy just to cover more expensive, precious items, such as artwork, collectables or irreplaceable antiques.
Reason #4: For on-time delivery
Sometimes, too, a policy covers the delivery time. In other words, it gives you a guarantee of sorts that you’ll receive your items within a previously agreed upon period of time. If not, the policy kicks in.
While any good removalist works to deliver your items within a reasonable amount of time, this can be helpful if there’s an unfortunate delay.
Reason #5: Temporary accommodation
If your items are delayed, moving insurance may even cover temporary accommodation, depending on the plan you choose.
This, alone, may prove well worth it if a disaster or other occurrence prevents your removalist from delivering your items as expected.
Reason #6: Disasters
Sometimes, too, a policy covers unplanned or even natural disasters that are out of your removalist’s hands such as:
- Collisions
- Storms/flooding/natural disasters
- Fires
Remember, not all policies are the same!
It’s important to know BEFORE the move what your own specific policy covers so there are no surprises.
Some policies don’t cover everything. Specifically, they may exclude:
- Items you packed yourself
- Theft
How much does moving insurance cost?
The total cost of removal insurance varies between insurance carriers and policies, but some estimates are between $17-30 per cubic metre.
Of course, the cost also depends on:
- Your particular items
- The value of your items
- The distance of transit
- If storage is necessary
If you’re looking to save some money, be sure and shop around.
Remember, though, not only should you look at price but also at coverage.
The different types of coverage
Policies definitely do vary, but there are two distinct types of moving insurance to consider:
Full
Covers loss/damage during:
- Packing
- Loading
- Unloading
Restricted
Covers loss/damage from things like:
- Fires
- Collisions
- Flooding
There are also extensions that can be added on to cover the period of storage, if necessary.
Settlement
In case of damage or loss, moving insurance policies are also differentiated by settlements.
Market value
- Determined by wear and tear
Depreciation is taken into account when determining the value of your items.
Replacement value
- Determined by overall replacement cost
This refers to the full cost of replacing your items.
Where do I purchase moving insurance?
You can get moving insurance from:
- Moving insurers
- Traditional insurance companies
Wait! I thought I was already covered!
The truth is, you may be covered, depending on your current home and contents insurance policy.
While obviously, I recommend removal insurance, there are some situations where you may NOT need to purchase the extra insurance.
To be safe, check your current policy to see if it covers your items during transit. Keep in mind, in some cases, home insurance policies do not, and that’s a great incentive for getting moving insurance.
Let’s move!!!
As I explained, your possessions aren’t always covered during the removal process, and that can be risky for a number of reasons.
Moving insurance covers:
- Damage
- Loss
Whether from natural disasters, human error or unexpected occurrences, moving insurance can give you some security during your move.
It’s also not very costly, but all policies are not created equal.
Be sure and check out the different types of moving insurance policies, read the fine print and hire a qualified removalist!
If you do, you are already ahead of the game when it comes to protecting your most prized possessions during your next move!