Understanding Moving Insurance Types and Charges: An Expert Perspective

Moving is not an easy task; it can be one of the most daunting and stressful times of your life. There can be the risk of damages to your valuable belongings in the process of shifting or in transit. Moving insurance that if offered by professional packers and movers companies in India can be the best option for securing belongings against the possible risks.

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Discover Moving Insurance Types & Expenses in India


I have met a person who relocated to a new city without availing of transit or relocation insurance. Thankfully, he didn’t encounter any damage. But, what if, he had ended up with damage to his belongings? Whom could he make responsible for those damages? Additionally, I have encountered cases customers complaining that there was no valid insurance, even after, paying for moving insurance. There was hardly anything that the insurance could properly cover. This is why understanding moving insurance is crucial. 

It is crucial to have proper moving insurance, especially when you are on a long-distance or intercity move. Make sure to go through the moving insurance policy thoroughly. Ensure you understand the policy well if you are paying for the insurance.

Plan your move with insured and experienced movers and packers

Consider moving with one of the insured and experienced packers and movers to have a safe and hassle-free shifting experience. If you hire one of the best and most experienced movers, you will hardly see any risk of damage to your belongings. You do not need to worry about the safety of your belongings. Because movers and packers will provide you with moving insurance. If, unfortunately, your goods get damaged in transit, you can claim insurance. Availing moving insurance while moving will cost you a significant amount of money. The cost of relocation insurance varies from 1.5% to 3%. But it is worth paying if you wish to have no risk of damage to your goods in transit. 

Don’t take the risk to save just a few bucks.

Unfortunate damages may happen, either due to human errors or natural calamities. Having insurance for your household goods transportation is beneficial. If any damages occur, you can seek compensation from the insurance provider. They will cover the costs of any losses or damages that happen during the move. Avail of valid moving insurance and move to your new place without much stress and tension. Let’s now understand what moving insurance is, the types of moving insurance, the cost of moving insurance, and other appropriate information about relocation insurance.

What is Moving Insurance?

Home insurance does not cover the loss or damage to your belongings while in transit. But you can make your belongings insured in transit with a valid transit or transport insurance. Most movers and packers offer relocation insurance, you know it well. 

If you want to shift your possessions to a new home using your own vehicle, even your vehicle insurance policy would not cover the risk. But you don’t need to worry at all. You can avoid putting your valuable belongings at risk by availing of a moving insurance policy.

“Moving insurance is a policy that covers the risks for personal as well as commercial goods while they are being transported from one place to another by a certain mode of transport such as road, rail, or air. It covers the risks like damages to goods due to unfortunate perils or natural calamities like accidents, fire, earthquake, explosion, and robbery.”

Moving or relocation insurance policies can be either acquired from general insurance providers or hired packers and movers. There are certain items that are not covered by the moving insurance policy.

As a responsible person, you ought to purchase relocation insurance on your move because you care about your belongings. So, go through the moving insurance policy’s terms and conditions beforehand. This will help you what items are insured and what items are not insurable.

Some items that cannot be insured in transit

  • Valuables, cash, and jewellery
  • Fine arts, heirlooms, collectables, and sport memorabilia
  • Antiques, silverware, fine chinaware, and glassware
  • Documents and medications
  • Food and perishable items

We recommend you handle these items on your own. Pack such items on your own and carry them with you only to avoid unfortunate damages.

General insurable items

  • Furniture
  • Electrical equipment
  • Home appliances
  • Kitchen appliances
  • Garden equipment

Factors that affect the insurance premium charges

  • The nature of items
  • The age of items
  • The real value of items
  • The distance to be travelled
  • Claim history, if any

Types of Moving Insurance by Packers and Movers

Generally speaking, professional packers and movers in India offer two main types of moving insurance. All companies that offer relocation services must offer two specific kinds of insurance to their customers when making long-distance or intercity house moves.

Most packers and movers companies in India will offer these two options to choose from.

  1. Transit Insurance
  2. All-inclusive insurance

Transit insurance

Transit insurance for moving is the most basic coverage option that most Indian packers and movers offer. As the name suggests, this version of moving insurance will cover damages during transit. For example, if your belongings are damaged during transportation, they are covered by transit insurance.

Keep in mind that transit insurance will not cover the loss if your belongings are damaged before or after transportation. For example, if goods are damaged while packing, loading, or unloading, you will not be compensated even if you have availed of valid transit insurance.

The transit insurance policy offers coverage for household items against risks of damages to goods associated with fire, earthquake, explosion, fire, collisions, accidents, robbery, etc. But you can only claim coverage if damages happen during transportation.

Nowadays, acquiring transit insurance is easy. You can avail it either from general insurance providers or the packers and movers you have hired, or you can move.

If your packers and movers are buying transit insurance on your behalf, then don’t forget to collect the original insurance certificate and bills from the insurance providers. If you want to purchase transit insurance on your own, you can easily acquire it online and pay the premium online as well.

Popular insurance buying portals in India

  1. Policybazaar.com
  2. Coverfox.com

You can get transit insurance by paying a nominal fee, i.e. 1.5% of the declared value of the goods.

All-inclusive insurance

If you don’t want to take a chance on encountering even single-item damage in your move, consider buying an all-inclusive insurance policy. In this option, you claim coverage against damages during the entire shifting process, including packing, loading, transporting, and unloading.

But all-inclusive insurance can be an expensive affair. It comes with an extra cost because packers and movers will have to replace or make a cash settlement for any lost or damaged items. Movers can charge you 3% of the declared value as an all-inclusive insurance fee.

The majority of the time, only experienced packers and movers offer all-inclusive services. Hence, don’t forget to check if your company is insured. Check their credibility and market reputation so that you do not feel cheated by the name of all-inclusive moving insurance.

Furthermore, you must verify valid insurance documents before taking out an all-inclusive insurance policy. Read the terms and conditions carefully, and ask for a valid bill for the same. Generally, all-inclusive moving insurance can be availed of for 3% of the total cost of the declared values of items.

Full Value vs. Declared Value Protection

Whether you wish to buy transit insurance or all-inclusive insurance, your movers may offer you two kinds of protection.

  • Full Value Protection: In this option, moving insurance will include coverage for repair, replacement, or cash settlements of entire household items that are insurable.
  • Declared Value Protection: In this version of moving insurance, you can get insurance for only those items you actually need. For example, if you require moving insurance only for home appliances, you can get the same. In other words, you can say it’s custom insurance. You need to declare the items that need to be insured for your move. Later, packers and movers will analyse your declared items and state the current value of the items.

Cost of Moving Insurance or Transport Insurance in India

There is tremendous confusion among customers about the actual insurance charges levied by professional packers and movers companies in India. Most customers complain that they are heavily charged for insurance coverage. Different customers are getting charged at different insurance service rates, such as 1.5%, 2%, 3%, and even more.

What should be the real rates for insurance coverage by packers and movers companies?

It totally depends on the type of insurance you want to purchase. I have already discussed the types of moving insurance, i.e. transit insurance and all-inclusive insurance.

If you purchase transit insurance, you will be charged an extra 1.5% as an insurance fee. Some companies may ask you for a 2% extra charge as transit insurance, but you should never agree to that rate. You can purchase transit insurance online on your own.

If you buy all-inclusive moving insurance from your movers, you will have to pay a 3% extra charge as an insurance fee. But with this option, you will have coverage against damages to goods during the entire shifting process, not just in transit.

Depending on whether you are buying transit insurance or all-inclusive insurance, you will need to declare the total value of your belongings.

Example of Moving Insurance

For example, you want to shift the following items to different values:

  • Washing Machine: Rs. 27,000
  • Refrigerator: Rs. 20,000
  • Air Conditioner: Rs. 34,000
  • Microwave Oven: Rs. 12,000
  • Air Cooler: Rs. 14,000
  • Sofa Set: Rs. 45,000
  • Almirah: Rs. 16,000
  • Geyser: Rs. 8,000

Hence, what amount will you have to pay as extra charges if you avail of the moving insurance? Let’s know the same in the context of this example.

If you choose transit insurance, the insurance rate will be 1.5% of the declared value + taxes. If you select all-inclusive insurance, the insurance rate will be 3% of declared value + taxes

The total worth of your items you want to shift and insure is Rs. 176,000.

Cost of transit insurance @ 1.5% = Rs. 2,640 + applicable taxes

Cost of all-inclusive insurance @ 3% = Rs. 5,280 + applicable taxes

You can learn here about the applicable GST Rates for Movers and Packers in India.

Documents Required to File a Claim Transit Insurance

Depending on the circumstances, the insurance provider (insurer) may ask you for the following documents:

  • Original invoice
  • Bill of lading
  • Packing list (inventory)
  • Transportation specification
  • Claim bill

Essential Takeaways

  • The goods in transit insurance fee is 1.5% of the total value of declared goods.
  • The all-inclusive insurance fee is 3% of the total value of the declared goods.
  • Ask your movers about different insurance options they can offer you.
  • Make it clear that insurance is applicable to only those items they will pack or also to those you pack.
  • Ask your movers how they will determine the value of damaged items.
  • Ask your movers at what rates they will insure your move.
  • Check the contract properly to see whether your movers offer you transit insurance or all-inclusive insurance.
  • If you wish to buy all-inclusive insurance, make sure the moving company is licensed, registered, and credible.
  • If your packers and movers are buying transit insurance on your behalf, don’t forget to collect the insurance certificate and original bills from the insurer.
  • Check the terms and conditions of an insurance policy carefully.

Disclaimer: The views expressed above are for informational purposes only. The author of this article has done proper research by exploring various industry reports and related stories. Moving Solutions does not guarantee the accuracy or completeness of the aforementioned information. We strongly advise that you buy transit insurance on your own to avoid higher charges. If you buy insurance from a general insurance company, the role of packers and movers automatically ends. So, please take this piece of writing as a standard guide for moving insurance.

FAQs about Moving Insurance

Q. What is moving insurance?

Moving insurance is a policy that provides coverage for the risks and damages associated with transporting personal or commercial goods from one location to another. It protects against perils such as accidents, fire, theft, and natural disasters.

Q. What does moving insurance cover?

Moving insurance typically covers damage to goods during transportation. The extent of coverage depends on the type of insurance chosen. Transit insurance covers damages specifically during transit, while all-inclusive insurance offers coverage throughout the entire moving process, including packing and unloading.

Q. What items does moving insurance not cover?

Moving insurance does not cover certain items, such as valuables, cash, jewellery, medications, heirlooms, fine art, collectibles, and perishable items. So, handle and transport these items separately.

Q. How do I select between transit insurance and all-inclusive insurance?

Transit insurance is suitable if you primarily want coverage for damages occurring during transportation. All-inclusive insurance, although more expensive, provides coverage for the entire moving process, including packing and unloading. Consider your specific needs and budget to make an informed decision.

Q. Can I purchase moving insurance directly from an insurance provider?

Yes, you can purchase moving insurance from general insurance providers. Online platforms like Policybazaar.com and Coverfox.com offer options to buy transit insurance. However, seasoned packers and movers frequently offer all-inclusive insurance.

6. How is the cost of moving insurance determined?

The cost of moving insurance depends on factors such as the nature and value of the transportable items, the distance of the move, and the chosen insurance coverage. Transit insurance typically costs around 1.5% of the declared value, while all-inclusive insurance can be around 3% of the declared value.

7. What documents do I need to file a claim for transit insurance?

When filing a claim for transit insurance, you need to provide documents such as the original invoice, bill of lading, packing list (inventory), transportation specifications, and the claim bill. These documents help substantiate your claim.

8. Should I solely rely on the moving insurance that packers and movers provide?

It is advisable to carefully review the terms and conditions of the moving insurance policy that packers and movers offer. Some customers have encountered issues where the insurance coverage was not as expected. Consider verifying the validity of the insurance and the reputation of the company before making a decision.

9. Are there any alternatives to moving insurance?

If you prefer not to rely solely on moving insurance, you can explore other options, such as self-insuring valuable items or opting for additional insurance coverage through your homeowner’s insurance policy. Consult with your insurance provider to understand the available alternatives.

10. Is moving insurance necessary for every move?

Moving insurance is not mandatory. But it becomes essential, especially for long-distance or intercity moves. It provides peace of mind and financial protection in case of any unforeseen damages or losses during the moving process. Assess the value and importance of your belongings to determine if moving insurance is necessary for your specific move.

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