Moving house can be a long and tedious process, but it’s something that needs to be done. But what happens when after all that packing, moving, and then unpacking you discover that some of your possessions have been broken, damaged, or stolen? What then?
Many Australians may not be aware that there are relocation insurance policies that can protect their possessions. Regardless of whether you are hiring movers or DIY moving, these insurance policies can provide protection from many unexpected events and they can also give you peace of mind.
With relocation insurance in place, you will be compensated for all the possessions that have either been damaged, broken, or stolen. Let’s see what home relocation insurance really is and all its types.
What is home relocation insurance?
Home relocation or moving insurance (also known as transit insurance) is the type of insurance that helps cover losses or damages made to your household during transit and storage. Depending on the type of move, you can employ insurance to protect and safeguard your goods.
If you’re moving a couple of items across the city, there really is no need for insurance. However, if you’re moving your whole household across the country or somewhere long-distance, then having home relocation insurance is preferable.
If you’ve hired a company that will help you pack and move, check to see if they offer relocation insurance. Many professional removalists from Sydney offer insurance but there are also companies that don’t. Before making all arrangements, make sure you find out whether they offer insurance or not.
Types of relocation insurance
Generally, depending on the country you live in, there are three types of relocation insurance. These three types include full-value protection, released value protection, and separate liability coverage. Let’s see what each of these types of insurance stands for.
1. Full-value protection
If you choose full-value protection insurance, the company you hired to relocate your goods has to completely replace all your possessions in case of loss or damage during the shipment.
Basically, if there is some sort of damage to your possessions, if your items have been lost or destroyed during the relocation, the movers your hired can either choose to replace, repair, or offer money for the cost of the repair or the current replacement value of the item.
This type of insurance is the most recommended by experts. However, keep in mind that the cost of full-value protection coverage can vary.
2. Released value protection
If you opt for released value protection, you will only get minimal protection. Released value protection also known as basic carrier liability, is the cheapest relocation insurance. You are required to ask for this type of coverage because movers don’t automatically provide it.
As we mentioned, this is the cheapest insurance, and in case of a loss or damage to your goods, they won’t be replaced based on their real value but based on their weight. And that usually means 60 cents per pound for each item.
3. Separate liability coverage
The third type of insurance is called separate liability coverage and this insurance is usually used when valuation insurance doesn’t provide enough protection for your valuables. This means that the separate liability coverage provides extra protection for your valuables.
This is an optional type of insurance and you can usually buy it through your moving company or you can seek out a third-party provider. If you decide to buy this type of insurance, always ask for coverage details in writing so that you can figure out what’s covered and what is excluded.
Types of relocation insurance for DIY movers
If you decide that you can transport your goods yourself without the help of movers and packers, in either your own car or rental vehicle, renters or homeowners policy can cover your valuables. But there are also some other insurances that you can look into.
1. Relocation or trip transit insurance
This type of insurance is similar to separate liability coverage as it protects your valuables when your regular policy doesn’t. You can get this insurance in addition to your homeowners policy and be sure that all your goods are fully protected.
This third-party relocation insurance covers natural disasters, mold and mildew, damages to pairs and sets, electrical/mechanical accidents, and high-value items, to name a few things.
2. Rental truck moving coverage
If you decide to rent a moving truck from a rental company, they might provide coverage for you, your passengers, your cargo, and the truck. Of course, the rental truck coverage will depend on the package you opt for.
Most commonly, rental companies cover damage waivers for accident damage to the truck, cargo protection, medical and life insurance for you and passengers in the truck cab, and so on. What is usually excluded from the insurance is damages caused by improper packing, normal shifting, and theft of cargo.
When in doubt, always buy relocation insurance. Moving is a stressful and tiring process as it is without adding the worry about your valuables. Any kind of relocation insurance is better than none at all.