Moving Insurance: What’s Covered And Why You Need It

Moving Insurance: What’s Covered And Why You Need It

Jul 11, 2024

Planning to relocate home soon? Packing up all household belongings and moving to an unfamiliar location can be overwhelming. The process can be challenging and stressful because valuable possessions are always at risk of being damaged or lost during the journey.

Mishandling of plush furniture pieces or expensive appliances can lead to financial losses and ruin the entire experience. If you want to safeguard your household items, select the most suitable moving insurance. You can ask the best removalists Perth for the coverage options or consider buying a third-party insurance to meet your specific needs.

Today, we share a comprehensive guide on moving insurance to help you know what’s covered and why people need it when relocating home. Make sure you ask relevant questions and make the right decision.

Let’s Get Started! 

1. Definition: What is Moving Insurance?

Like any other insurance option, moving insurance also provides coverage against losses. To be precise, it allows you to file a claim if covered items are lost, damaged or stolen during the transit. However, you will get the compensation depending on your specific coverage plan:

• Pay to repair the damaged or lost item
• Pay to replace the item
• Offer a cash settlement depending on the item’s current value.

Remember that expert Removalists Perth is not liable to provide insurance. However, they can offer two types of valuation coverage to safeguard your belongings. For complete protection, opt for third-party insurance.

2. Key Reasons: Why You Need It?

Have a look at the following reasons and understand why you need moving insurance for your much-loved possessions:

• Safeguard Your Belongings: This is one of the most basic reasons because relocation processes are unpredictable. Your items might get damaged or lost during the journey. So, is good to opt for moving insurance and protect your items. Make sure you move piano and other delicate items carefully to prevent damage.
• Reduce Financial Loses: Moving insurance coverage can be taken as a precautionary shield to help you protect in case of extreme conditions, such as road accidents, etc. The company will repair, replace or provide case settlement against your damaged or lost items- save you from incurring losses.
• Alleviates Moving Stress: Believe it or not! Insuring your valuables can give you a sense of relaxation, and you can focus on other important things, such as decorating your new home, etc.

3. Types of Moving Insurance In Perth

Whether you are relocating next to the apartment or a new state, consider the following moving insurance options for your precious possessions.

Released Value Protection

It is the most basic type of moving insurance offered by moving companies in Perth. Released-value protection provides minimal coverage, no more than 60 cents per pound per item if damaged or lost during a move. It comes at no additional cost when you outsource professional services.

For example, if a 10-pound item priced at $2,000 is lost during the process, the company will compensate you only $6, which won’t cover your losses. That’s one of the reasons why basic or released value protection is not ideal for house moves.

Full-Value Protection Coverage

This is a better option for a long distance move. It is because the company is obligated for the replacement value of damaged or lost belongings during the journey. In simple terms, the removal company reimburses you for the actual value of your damaged/lost items, depending on their current market value or replacement cost.

Keep in mind that FVP (Full-Value Protection) is based on a pre-determined amount per kg of your total shipment weight- which might not be an ideal option for many people. Still, it is good compared to released or basic valuation coverage when safeguarding household items.

So, read the coverage plan, as many companies might exclude extraordinary items unless they are specifically valued or declared.

Declared Value Protection

This type of valuation coverage allows you to declare the total value of your shipment (that needs to be relocated) within certain limits and company policies. The coverage is based on the declared value of your items instead of the actual replacement cost. Compensation may not cover the full replacement cost of lost or damaged belongings, but it is more affordable than full-value protection.

Third-Party Moving Insurance

This will provide comprehensive coverage and compensation against the loss or damage of your belongings during a move. It may include supplemental liability coverage, relocation insurance, trip transit insurance, etc., which can be expensive but can reduce your moving stress.

4. What is Covered in Moving Insurance?

Consider the following guide because valuation policies generally cover:

• Items damaged during the loading/unloading process and transportation.
• Damaged items that were packed/unpacked by removalists Perth.
• Items that are lost, damaged or stolen during transit

This may also vary from company to company. So, ask the necessary questions and clear all your doubts.

5. What’s Not Covered in the Valuation Policy?

Here is the list of conditions not covered in the moving insurance:

• The full value of damaged or lost items worth over $100 per pound
• Items packed by customers
• Relocating hazardous items, such as paint containers, thinners, chemical cleaning products, etc
• Natural disasters or events that are not caused by removalists
• Damages occurred during storage at a third-party location.

Safeguard Your Belongings: A Complete Guide on Moving Insurance

Wrapping Up

This guide will help you choose the right moving insurance or valuation coverage for the utmost safety of your precious belongings. Make sure you consider all the crucial factors and enjoy a seamless home relocation in Perth.