Insured For Your Move To Australia? You Should Be…

There is an often-repeated opinion that moving house is one of the most stressful events in a person’s lifetime. There is no denying that the process is time-consuming and can be difficult, but various steps can be taken to avoid major pitfalls. One simple action to take away some concern is the arranging of adequate insurance for your treasured possessions! Especially considering the distance it is to Australia and all the potential risks.

When selecting an insurance company two simple conditions are key: who is the provider and what do they cover.

Many removals companies who offer export services to Australia also provide transit and/or storage insurance for belongings. Up until April this year, only those companies which were regulated by the Financial Services Authority (FSA) were actually allowed to offer insurance. Although the rules have now been relaxed so more firms can now do so, it would still be prudent to choose one that remains registered with the FSA because of the additional vetting required.

You should always check what level of cover you are receiving. Three scales are available ranking from ‘A Clauses’ (the highest, “all-risks” coverage) to ‘C’ (the lowest cover, known as “total loss only” or “restricted” cover).

Secondary to the importance of this is to discover what kind of replacement for items which are harmed or misplaced. “Like-for-like” (reinstatement) cover means that in any claim, wear and tear will be taken into account with its reclaim value based upon its second-hand market value which could be negligible. “New for old” (replacement) cover is for the cost of replacing as a new item without reduction.

There can be multiple exclusions to a policy including a financial limit for the total valuation. Ensure that you take note of all such exclusions when choosing a policy. Also make certain that in the instance of absolute loss the maximum limit of the policy covers the total value of the goods. This means that if all of your belongings were destroyed by an accident en route you would be able to at least claim for the complete value.

When moving abroad, it is best to choose a policy based on a detailed, valued inventory. This can be perceived as a more expensive service although it is more tailored to the individual needs of clients and guarantees better protection in the event of a mishap. The insurance company will charge its premium based on a set rate or at a percentage of the inventory value. This more thorough approach is recommended for those with items which are particularly financially and personally valuable. A bonus is that the pre-prepared detailed inventory often avoids arguments should a claim be necessary and can then be used in negotiations for domestic household insurance in your new country.

Some movers can expand the inventory service to the extent of photographing items of value such as antiques and family heirlooms. It may be the case that a removals company in any case requires a detailed list of fragile and/or high valued belongings in advance of the moving process. To fail to provide such may result in a reduced payment in the event of a claim.

The inventory valuation should match directly to the actual values of the pieces included in a shipment to avoid the insurers ‘condition of average’ which reduces claims by the percentage under insured.

When deciding whether or not to pack your own belongings prior to moving, your insurance should be a consideration. Many decide it is worthwhile paying a little extra to have a professional company do the work for various reasons. Goods which are packed by their owner can only be insured against a reduced level of risks. Common damages like breakage, denting and scratching cannot be covered due to their frequent occurrence through your own bad packing. As a consequence, most insurance companies will also insist upon a detailed inventory for ‘home-packed’ goods. Security requirements around the world also reduce the possibility of sending goods packed by owner.

Insurance seems complicated at first but it is worth following common-sense and expert guidelines from professionals to steer clear of the most likely problems. And remember – if a rate seems too good to be true; it often is!

Handy hint: to further minimise your risk of damages you could ask for your potential removal company’s claims record. A remover with a low history of claims will be pleased to provide it for you. More risky companies may be a little more hesitant…

Article supplied by Abels Moving Services, by appointment to HM the Queen for removals and storage services (www.abels.co.uk).