A Complete Guide To Removals Insurance

A Complete Guide To Removals Insurance

Aug 04, 2022

Dents, scratches, breakage and other severe damage to household belongings are the common moving disasters you may face when relocating home. The risk of losing precious possessions is always in your head, especially when doing it for the first time.

Poor handling of delicate items or using cheap quality packing materials can lead to damage or breakage. Fortunately, you can leverage the benefits of removals insurance for your precious possessions. Apart from hiring good removalists Melbourne, you need to focus on clearing the concept of moving insurance options and their benefits.

Here is a complete guide to give you peace of mind and help you choose the right moving insurance policy for your valuable belongings.

What is Removals Insurance?

It is one of the common insurance policies covering damages and losses to your belongings during the relocation process. This comprises the packing, lifting, unloading, transportation and unpacking belongings in your new home.

You can get it along with removals service or purchase moving insurance from your removalists in Melbourne or a third-party company.

What Does it Cover?

When you purchase a moving insurance policy, your household belongings will be covered during the transition process due to damage caused by:

  • Storms
  • Flooding
  • Theft
  • Malicious Activities
  • An accident
  • Fire

Make sure you read the policy before the final moving date and check the factors that may not be covered. For instance, some policies do not cover damage to fragile items, such as mirrors if they are not packed by professionals.

How Much Moving Insurance Will Cost?

The cost of moving insurance will depend on the distance of your move and volume of belongings, and of course, accessibility. Plus, the standard policy does not include delicate stuff such as heirlooms, antiques, mirrors, and glassware. It is good to purchase additional insurance for these items to achieve peace of mind.

If you avail of the insurance, your belongings can be insured up to a capital of 10 per cent of the total cost of the items covered.

Choosing the right company and insurance policy will help you overcome common moving nightmares and make the process easy for you.

Different Types of Moving Insurance

Many moving companies in Melbourne offer three types of coverage options to help you safely transit belongings. The coverage offered by removalists will cover only $0.30 to $0.60 per pound. The types of moving insurance are:

1. Basic Carrier Liability/Released Value

Basic carrier liability can be purchased when moving household belongings. A reliable and cheap removalists Melbourne will have basic carrier liability and is the minimal amount that must be offered for free when moving household items.

In this type of valuation, you won’t receive full coverage for damaged items. It is also known as the released value, and you will get only $0.30 if you are moving locally and $0.60 for interstate move per pound per article.

For example A 30-pound item that will approximately cost $1000 to replace would only compensate you only $9 for a local move and $18 for an interstate- which is not worth it.

2. Declared Value Protection

It is different from released value because the amount due to you is based on the depreciated value if something is damaged or lost. Declaring the good’s value lets the insurance company keep a record of how much your belongings cost.

With this coverage, the removalists can charge you $7 for each $1,000 liability, and the charge of $70 will be included in your bill. For example, the same 30 pounds of an item we discussed earlier could collect full value if it gets lost or damaged.

However, you may have to pay extra for this insurance coverage. But the downfall is that you will get the depreciated amount. So, keep this point in mind.

So, it is good to protect your valuables during a house move and opt for a third-party insurance policy for your peace of mind.

3. Full Replacement Liability

This is one of the most reliable removals insurance coverage. Under this, you will get full cash value if your belongings get lost or damaged. If you have a moving truck full of precious items that would exceed the $1.2 per pound liability, you must opt for this option. Although you need to pay the extra amount, it will give you peace of mind.

The moving company in Melbourne is liable only for the first part of the coverage, up to $0,60 per pound per article.

If it is more than that, the amount will be covered via the insurance company. This will cover the replacement cost of your damaged or lost item.

Find The Ideal Moving Company

Choosing the best and most experienced removalists Melbourne is important if you are concerned about your precious possessions. It is good to ask everything about the moving insurance options or valuation coverage before making the final decision. A good company always gives you satisfactory answers and keep thing sorted at their end.


Knowing consumer rights can resolve many issues. Most people don’t know that Goods in Transit Insurance should cover all moving companies. This means it covers you from any damage or loss to their items when moving.

However, it should be added to the final removal cost. For more transparency, hire the best moving company in Melbourne and safely move to your home.