The Role Of Insurance In Your Move: Understanding Your Coverage

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The Role Of Insurance In Your Move: Understanding Your Coverage

Nov 01, 2023 Are you concerned about the safety of your precious possessions during home relocation? Though the number of belongings damaged during a move in Sydney has decreased over the last few years, the percentage is still distressing, especially if you have expensive items and bulky pieces. According to the Australian Furniture Removers Association (AFRA), large furniture pieces are the most commonly damaged items, accounting for around 30 per cent of all damage claims. Appliances account for 20 per cent, while electronics are the third most damaged item during a house move. If you want to protect your belongings from damage or loss during the process, purchase the right moving insurance. You can’t predict accidents, but you cover the losses and damages to your valuable items during a move. You can purchase moving insurance from professional removalists Sydney or a third-party insurance provider, depending on your specific requirements. Here is a complete guide to help you understand the role of insurance in a house move to help you make the right decision:

What is Moving Insurance?

Relocating household belongings from one place to another involves a lot of risk due to potential factors. It is important to understand that home insurance doesn’t cover the damage or loss to your items while in transit. Thus, you need to purchase moving insurance to keep your items intact throughout the process. It is basically a policy that covers the risk for household and office belongings while they are being shifted from one place to another by road, air or rail. It covers the potential risks, such as damages to your items due to natural calamities, robbery, explosion and unfortunate perils. These policies can be purchased from a hired moving company or general insurance provider. Therefore, it is good to know everything about the coverage options and other details before making the final decision. You can also hire professionals who can pack your entire home without causing any damage.

What Does Moving Insurance Cover?

  • The coverage provided by moving insurance may vary from policy to policy. However, it may include:
  • Damage or loss to your belongings when being loaded or unloaded onto the truck.
  • Loss or damage to your items during transportation, such as caused by road accidents, theft or malicious damage.
  • Damage or loss due to mishandling of removalists.
Read on the pros and cons of hiring a cheap removals company if you are moving your house.

List of Insurable Items:

  • The majority of moving insurance policies cover the following items:
  • Electrical equipment
  • Furniture
  • Kitchen appliances, such as oven, microwave, etc
  • Home appliances, etc

List of Items that Cannot be Insured:

  • Valuable pieces, jewellery and cash
  • Fine arts and collectables
  • Antiques and silverware
  • Documents
  • Food and perishable items.
You can hire the best removalists in Sydney to pack and relocate precious and delicate household items. They use quality supplies and take extra care of your belongings while in transit.

What are the Moving Insurance Options?

Knowing your rights and responsibilities as a consumer in NSW will help you pick the right level of coverage for the safety of your belongings. In Sydney, Moving companies offer two types of coverage or valuation options:

Released Value Protection

This is a basic coverage option, which is often added by default with most removal companies in Sydney. It is one of the most economical options and provides limited protection to your items. In short, it provides coverage depending on the weight instead of value. This means the company is liable for only 60 cents per pound per article against the damage to your household belongings. For instance: If a 20-pound kitchen appliance is damaged during a move, the company will reimburse (60 cents * 20 pounds), i.e. worth $1200. Thus, it is not an ideal option if you have high-value belongings to relocate. So, create a moving timeline, book removalists Sydney and ask them about the valuation options or purchase a third-party one for your belongings.

Full Value Protection

Also known as full replacement value protection, it is an optional insurance policy that offers comprehensive protection for your belongings. If anything is damaged or lost during the process, the company will repair or replace the item at its current market value. This is the best option if you have high-value items or are moving across the state. It will provide you with the highest level of coverage in case of damage or loss of your items while in transit. Caveat: However, the movers are not liable to reimburse an item valued at more than $100 per pound unless mentioned in the shipping document. Therefore, people go for a third-party moving insurance that provides complete coverage when moving a house, especially for the first-time.

Wrapping Up

Understanding insurance coverage plays a vital role in protecting your precious items while in transit. With the help of this guide, inclusions, types of coverage and other key aspects, you can easily choose the best option and ensure peace of mind throughout the relocation journey.