Transit insurance when moving house

Arriving at your new home after a move to discover that your furniture has been broken, your glassware chipped and some of your clothes are missing, can be a disappointing and costly experience. If you have an existing contents insurance policy it may include cover to protect your belongings while in transit. If not, there are other insurance options you can consider.

What is transit insurance?

Transit insurance can help provide a level of financial cover for your possessions if they are damaged or lost whilst in transit from your old home to your new one. It can be purchased as a standalone product from a specialist insurance provider, removalist or freight company. This is dependent on where you are moving to and from, and the type of cover you are looking for. Some transit insurance policies may include similar coverage to a contents insurance or removalist insurance policy, but they should not be confused with each other.

Alternatively, some contents insurance providers in Australia may include transit insurance as a feature of their policies, so if you have a contents or home and contents policy on your old home, it could be worth checking whether it includes goods in transit insurance before you cancel it.

Who should consider transit insurance?

Home movers, whether moving to a new rental home or a home you own, within Australia or abroad, might consider taking out some form of transit insurance if they want protection for valuable items that they own.

What does transit insurance cover?

The cover provided by transit insurance will differ depending on the policy you have chosen and the provider. It may include cover for:

• Loss or damage to your goods when being packed and unpacked

• Loss or damage to your goods when being loaded into or unloaded from a mode of transport

• Loss or damage to your goods in transit

• Loss or damage to your goods caused by removalist mishandling

• Incidental storage costs

• Alternative accommodation expenses if required.

How can you get transit insurance for moving house in Australia?

Options for insuring your belongings when you move house include contents insurance, removalist insurance, and standalone moving or transit insurance.

1. Contents insurance

Canstar research has found that contents insurance policies differ when it comes to cover for your belongings in transit. Some insurance providers do offer a level of cover for your contents if damage or loss is caused by events such as fire, flood, theft or a road accident while a vehicle is carrying your items to your new home. However, exclusions and conditions may apply. For example, some policies may cover the items in transit, but not when they are being loaded and unloaded from the vehicle.

Other policies may not provide cover if you fail to let your provider know about your moving plans, or if you use a removalist that is not deemed to be professional. There may also be an exemption if your belongings are stored in a facility. Some providers may restrict transit coverage, or will only provide this additional cover if you pay a premium. As policies differ, it’s a good idea to read the Product Disclosure Statement (PDS), Target Market Determination (TMD), Key Facts Sheet (KFS) and other important product documentation, and to contact the provider if you have any questions about a policy you’re considering signing up for.

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2. Removalist insurance

If your current contents policy does not provide cover for your belongings while they are being moved, you can check to see if insurance is available from your removalist. Removalists are not legally required to have insurance to cover you for your belongings, though they may have insurance to cover themselves against legal claims.

The Australian Furniture Removers Association (AFRA) recommends that you ensure your removalist is properly qualified to offer you insurance. For professional removal companies to be accredited by AFRA, they must have public liability, third-party property, motor vehicle and carriers’ legal liability insurance. These types of insurance may provide some cover for your items should they be damaged or lost as a result of negligence by the removalist, but not other events or accidents. This is where standalone transit or moving insurance, which can provide some financial protection for your belongings, may be an option.

AFRA accredited removal companies are authorised to offer transit insurance as part of their service, and it will typically come at an extra cost. This cost will vary depending on the level of cover you take out (e.g. full replacement or value-only cover) and the excess you select—which is the amount you pay the provider if you need to make a claim. If your removalist offers this insurance, they will need to provide a PDS and Financial Services Guide (FSG) regarding the cover. Check these carefully before you purchase the insurance to understand exactly what you are covered for and whether it suits your needs and budget.

If you decide to hire a removalist, research your options carefully and ask family and friends for recommendations. It may be a good idea to use a company accredited by AFRA. Removalists who have this accreditation are guaranteed to meet certain equipment, premises and staff training standards; along with carrying certain insurance. You can visit AFRA’s website to search for accredited members.

3. Standalone moving or transit insurance

If you decide that the insurance cover on offer from your contents insurance provider or qualified removalists aren’t suitable for you, there are some specialised moving and storage companies who may also offer transit or moving insurance. The price of these policies will depend on a range of factors, including the value you place on your belongings and what circumstances you would like to cover. Before buying one of these policies, it is important to check the PDS and other documentation, or contact the provider directly to understand the policy’s inclusions and exclusions. You may also want to obtain quotes from a number of different providers to help you gauge the costs you are likely to pay.

Are any items excluded from cover while being moved?

Some items may be excluded from insurance cover while they are in transit, but this may vary depending on the policy and provider.

Some Australian contents insurance providers specify (in their PDS) that they will not cover any loss or damage while in transit for items such as cash, phones, cards, documents able to be cashed or traded, and items which are excluded from cover elsewhere under the contents policy. These items may include some electrical items, building materials, business or trade stock, pets or animals, plants, trees and shrubs, chemicals, pesticides and firearms. Some standalone moving or transit insurance providers may also exclude particular items from cover or restrict the amount of cover on offer. AFRA specifies there are some items that your removalist may not be able to move, such as animals, plants and prohibited or dangerous goods. If these items are not able to be moved by your removalist company, then the insurance available for these items in transit will also not be available. Check with your removalist and in your policy’s PDS for more information.

If you are looking to transport a pet and have a pet insurance policy, it may be a good idea to check whether your transit insurance or pet insurance policy covers your pet, in case they are injured during the move.

How much does transit insurance cost?

If you choose to purchase transit insurance through your removalist or as a standalone product, AFRA says the costs will differ depending on several factors, including:

• The level of cover chosen

• Whether you choose ‘full replacement’ or ‘market value’ in your cover

• The types of belongings you are transporting

• The distance the belongings need to be transported

• The method of transportation you’re using

• The policy excess.

Coverage options and premium details are available from providers directly. Many of the key policy terms and conditions such as PDS documents are also generally available from insurance provider’s websites. If you are using transit insurance provided by an AFRA-accredited removalist, you can contact AFRA for more details.

Related: How much do removalists cost?

What if I am moving overseas or back to Australia?

If you are relocating abroad or moving back to Australia and want to ship your belongings to your new home, there may be transit insurance options available. These may be available through your chosen shipping, freight or cargo company, or from an insurance provider that specialises in international transit cover. You can research transit insurance options online or talk to an insurance broker about policies that may suit your needs and budget.

What about insurance once you are in your new home?

If you have an existing home and contents insurance policy, you will need to contact your insurance provider to notify them you are moving, and to discuss any changes that need to be made to your policy. For example, you may need to adjust the amount your property is insured for based on its location and value, or if you buy more belongings for your new home. Your existing policy may provide some cover for your belongings for a limited time after your moving date. Make sure you review your policy documents or check with your insurer for details.

If you don’t have home and contents insurance or are looking to review your cover, consider comparing your options and requesting quotes from different providers. Some home insurance providers may offer sign-up deals and discounts for new policies. Keep in mind the cheapest policy or one with a sign-up deal may not always provide the cover you require, so it’s a good idea to read a policy’s PDS before making a decision. You can compare home and contents insurance policies with Canstar.

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