Everyone is going to tell you that you need moving insurance when you move homes, but very few people are actually going to explain what it is, why you need it and how you get it. There’s a pretty good reason for this. Moving insurance varies a lot in terms of what it covers, who provides it and how much it costs. One of the biggest pitfalls when getting moving insurance is choosing the wrong insurer. Some specialised moving insurers will try to get you to purchase packages far more expensive than you may need. However, while getting a cheap insurance policy might seem beneficial in the short run, if something goes wrong you may end up having to pay out of pocket expenses that far outweigh the initial savings.
So, to avoid these common mistakes and to make sure that you’re financially protected for your move, we’re going to cover everything you need to know about moving insurance. Starting off with what moving insurance is, we’ll also answer why you need it, how you can apply for it, what to expect and what to look out for when choosing a good policy. For more information about moving insurance options, get in touch with our experienced insurance team today. We offer free quotes and flexible insurance policies to meet your budget and your needs.
What does moving insurance cover?
Moving insurance is not a generic one-size-fits-all policy. As such, there is a wide range of insurance types to suit your needs, but also a wide discrepancy in costs and coverage from different insurers on the market. Moving insurance can cover as much or as little as you need, depending on the type of moving service you’re getting, the items you have, the distance of their transit and the level of risk you’re willing to accept. This is to ensure that you only pay for the protection you need and don’t waste money on any unnecessary insurance. Allied Transit Insurance has an extensive range of flexible options including:
- Pairs and sets insurance
- Mechanical and electrical derangement insurance
- Packing and moving insurance
- Mould and mildew insurance
- Motor vehicle insurance
- Packed by owner insurance
- Storage Insurance
In addition to the type of insurance policy you choose, you need to consider the level of coverage that the insurance provider offers. Some may deduct value from your items for their age or only cover the value up to a certain threshold. Allied has one of the most comprehensive insurance policies available because it covers your belongings up to their full replacement value. This means that regardless of age, if your items are subject to damage through an accident or incident beyond control, they will be completely covered. Comprehensive coverage is an important element to look out for in a good insurance policy in order to provide sufficient financial protection and peace of mind.
Why do you need moving insurance?
Moving insurance is an essential part of protecting yourself in the event of unforeseen accidents or incidents beyond control. It’s important to remember that no matter how much experience, training and qualifications a moving company may have, there is always a chance that forces such as extreme weather, turbulence, atmospheric changes or any number of things can interfere with the condition of your belongings. When moving long distances such as inter-island, to Australia or internationally, your items may also pass through the hands of third parties such as airlines, shipping companies or postal services. In these cases, it can be harder to ascertain how well trained the staff are and how much care is being used when moving your valuables. In all these cases, moving insurance can provide the extra level of support to prevent you from being liable to pay the costs of replacing items that have been lost, destroyed or damaged during transit.
Moving homes is a period of huge change in your life that comes with a lot of uncertainty. It is also a time when keeping to a budget and reducing your expenditure is an important way of enabling a smooth transition and minimising the obstacles that you face in settling into your new home. Having an issue with your valuables in transit without the benefit of insurance coverage could result in you paying some hefty bills to fix or replace those items. This sort of unplanned expense can throw out your budget and add unnecessary stress to an already tumultuous time in your life. Moving insurance brings with it the benefit of stability and certainty. It allows you to plan your budget and know that you won’t have to pay out of pocket for any incidents that occur in transit.
How do you apply for moving insurance?
Applying for moving insurance through an external provider involves several extra steps to your moving process. Acquiring insurance through Allied skips these steps and allows you to directly attach your insurance policy to your moving services. It also means that in the unlikely event of needing to submit a claim, you can do it all through the one company without needing to navigate between different parties. The application process for moving insurance is quick and easy with Allied. Simply let your moving consultant know that you would like moving insurance and they will guide you through the process. It’s important that you do this before receiving any moving services to ensure that you are protected and to allow you to correctly budget for all costs upfront.
What should you expect in the insurance process?
When you apply for moving insurance, you will be provided with a number of documents to work through. The main ones will be the Product Disclosure Statement (PDS) and the Financial Services Guide (FSG). These are important documents that are designed to help you make an informed decision and to provide you with all the information you need to understand the insurance policy. It will describe essential elements and features of the insurance policy, including the benefits, terms, conditions, limits and exclusions. It is important that you read these documents before purchasing the insurance. If there is anything you don’t understand, or would like to discuss further your cover, simply get in touch with our team who will be happy to answer any of your questions and guide you through the policy.
What to look out for when choosing a good policy
The first thing to know when considering the right insurance policy is that there is a difference between the insurance that protects the removalists and the one that protects your belongings. Most moving companies will be insured with public liability insurance, third-party property, motor vehicle insurance and carriers’ legal liability insurance. However, these help the company pay any claims arising from negligence, but do not protect your valuables for a range of other circumstances. So even when removalists state they are “fully insured” - you still need to get moving insurance for your own financial protection.
The next thing to look out for is the limitations of the insurance policy. Whether it’s transit insurance, storage insurance or any other package, most plans will not cover you in the event that you have packed dangerous or hazardous material. For instance, removalists will provide you with a list of restricted items that cannot be packed for the risk of damaging the rest of your items in the move. This includes perishable food, flammable liquids, explosive material etc. By packing any of these items you will be at risk of voiding your insurance coverage. So be sure to discuss with your insurance provider if you have any of these items that you are moving that may require a specific, flexible insurance plan.
If you have items of significant value that you wish to insure, you must make sure you inform your insurance provider upfront and in writing to enable this to be included in your coverage. Failure to do so may mean that you aren’t covered up to the full value of that item.
What to avoid when getting moving insurance?
When it comes to getting insurance, make sure that you are only paying for coverage that you actually need. This means that you should absolutely get the insurance that covers you for all items of value and all types of risk they will be exposed to. However, you should avoid any insurer that tries to sell you an insurance package that covers extra items or services that you don’t need. Wide-ranging insurance plans are an unnecessary expense when they cover things irrelevant to your particular circumstance. For this reason, you should absolutely avoid any one-size-fits-all policy. Always choose the coverage that is tailored to your needs, your circumstances and that meets your budget.
Get insured today
Allied’s moving services include experienced insurance professionals that can create a flexible plan to meet your needs. Bring some financial security to your move with an insurance policy that covers your items to their full replacement value. To get started, reach out to our friendly team on 0800 255 433 today.