10th October 2023

Insurance – Lets Talk about coverage.

Are you insured?

Getting ready to move? Across town or to a new country or maybe continent? During these exciting times, it’s always good to sit down and go through the dreaded boring stuff: Insurance. It’s always important to consider all the worst-case scenarios which may arise during transit. Today we will talk about insurance and discuss how it’s crucial.

Once the shipment is in transit, it is out of our control as there can be many outside factors. There is always a risk of accidents and errors. In the past, there have been countless accidents and incidents with shipments catching fire or going overboard. (Links below)

Not only can accidents happen during transit, but accidents can also occur during the packing and unpacking stages. Insurance also covers accidents caused by human error.

Now you know the risks, it’s time to look through the transit insurance policy. Transit insurance will cover you for the transit only A to B with the possibility of extending the coverage should your items go into a storage facility within your movers’ network. The policy will be full risk coverage and we recommend you read the summary of the cover page in your insurance document carefully. Certain conditions can affect insurance and its coverage such as pre-existing damage to items, items that are not professionally packed and delivery location conditions such as private storage units.

The policy dictates that upon delivery and professional unpacking service given, you must notify of any damages within 30 days to proceed with claims.

Typically, upon an insurance claim, there is an excess fee which is taken from the claim value. Please consult with your mover or insurance provider on this.

Luckily transit insurance policy gives you methods to determine the value of your goods so that an insurance certificate can be raised.

Methods of Transit Value Coverage

Declared inventory.

This entails listing every item you are shipping from the socks to the TVs to antique cabinets, nothing can be left out. The insurance policy also discourages “picking & choosing” items to insure as on the whole it undervalues your shipment. Items that are the same and have similar values can be quantified such as books – individual value 5 USD – quantity x 25 – total 125 USD.

Grouping together items that are the same but varied in value will cause issues upon claiming and likely result in an undervalue claim.

This method does take time but allows you the chance the organise and value your own goods.

Values should be of replacement value. What their value is currently should you need to buy the exact same again.

Lump Sum

This is a easier method to avoid the long process of the inventory method. This method is here to help you do this quickly and its based on fixed calculation from the volume of your shipment.

Firstly, its states the average value of a cubic meter is USD 2,750. The method would then multiply this USDD 2,750 by the volume of your shipment to calculate its value. A much quicker process than listing goods.

Individually, the method will cover items between 1 – 1500 USD. Should you have items valued higher than 1500 USD you must notify the mover or insurance broker of the items and these high value items will be added ontop of the calculation. This way should they get damaged you can claim to their value rather be limited to the maximum 1500 USD set.


Additional Enhancements

Electrical mechanical derangement – If there is no evidence of damage but internal damage, it is considered mechanical and covered if the item is less than 6 years of age.

Mould and Mildew – items affected by mould and mildew due to excess moisture or environmental temperatures. Affected items are also a health hazard.

Pairs and sets – if one of a pair or set breaks then you receive the full replacement set.

Replacement Value Protection.

This covers full comprehensive insurance. In the event of damage, the moving company will take one of the following actions: either repair the damaged item, replace it with a comparable one, or provide a cash settlement based on the current market value of the item. You will be required to declare the value of each item before it is insured to ensure an accurate replacement assessment.