Do I need moving insurance? A basic guide to what moving insurance covers

Moving house is stressful enough without the added fear that damage may be done to your possessions. When choosing a removalist company, it's best to check out what their standard insurance policy covers and if it will be enough for you.

Whilst mainly touted as an essential for long distance moving, moving insurance is applicable even to those relocating within the same suburb.

Choosing a moving insurance policy: Finding coverage that suits you

Most moving companies offer a standard insurance policy that covers your goods based on weight. For example, a typical policy may offer $2.00 per kilogram, so if your possessions have a total weight of 5,000 kilograms, the moving company will be liable for up to $10,000. This may suit some people; however, if your goods are particularly valuable it's definitely worth investigating additional coverage. Some things to look out for include:

• When comparing prices, make sure that one policy isn't offering less inclusions than the others. This is definitely a case where you shouldn't base your decision solely on price.
• Ask if the company will provide new replacements if property is stolen or damaged beyond repair.
• Many moving companies will state that they are not liable whilst your possessions are in transit. You may want to consider purchasing extra transit insurance if this is the case.
• Compose a list of all possessions that will be moved and an estimate of how much it would cost to replace each. Add up the total and make sure your policy will cover this amount.
• Moving insurance won't always cover belongings that owners have packed. If you plan to do your own packing, make sure the policy is still valid.

What type of moving insurance policy do I need?

There are a variety of coverage options available if you're looking into purchasing coverage for your move. Moving insurance policies usually come under three options:

• Declared value- This is the standard weight-based policy where your goods will be covered for a certain figure per kilo. This option is useful if you're moving a lot of heavy furniture, but not if you're moving some lighter, more delicate goods.
• Assessed value (or lump sum value) - This type of policy is the same as above, except it is value-based. Be sure that you're happy with the estimated value sums before signing off on anything. Assessed value policies are suitable for anyone moving light valuables such as expensive artwork or electronic equipment.
• Full value protection - This coverage will provide replacements and/or repairs for any lost, damaged or stolen property.

Additional moving insurance information and tips

Something many people are not aware of is that your belongings may already be partially covered for moving under your current home contents insurance. If you can purchase additional moving insurance on top of your existing contents insurance, it may bridge the gaps between standard moving insurance.

Something else that may come in handy is taking photographs of all possessions that will be moved. This provides you with some useful evidence should you need to make a claim. Also remember not to pack valuable jewellery or documents. It's best to handle these smaller valuables yourself.