Moving home from one place to another is not a five-finger exercise. It can be one of the most daunting and stressful times of your life. There can be the risk of damages of 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.
A Guide on Moving Insurance
It is always the best decision to move with one of the insured and experienced packers and movers companies to have a smooth and damage-free shifting experience. If you hire professional packing and moving services from one of the best and experienced companies there will a fewer risk of damages to your goods.
Since movers and packers will also provide you the moving insurance you will not need to worry about the loss. You can claim for insurance if your goods are damaged unfortunately in transit or during the shifting process.
Availing moving insurance while moving from one city another will cost you a significant amount of money. The cost of moving insurance varies from 1.5% to 3%. But it is worth to pay if you wish to have no risks of damages to your goods that are being relocated by professional packers and movers.
It is crucial to have proper moving insurance especially when you are on a long-distance or intercity home shifting. But you must understand that moving insurance thoroughly if you are paying for the insurance cost.
I have personally met a person who had relocated to a new city without availing moving insurance. Thankfully, he didn’t encounter any damages. But what if he had ended up with damages of their belongings. Whom he could make responsible for that damages?
I have also encountered some cases in which customers complain that there was no valid insurance even after paying for moving insurance. There was hardly anything that can be properly covered by availed insurance. Hence, knowing about moving insurance is a must.
Moving insurance is the best tool to protect belongings that are being handled by professional movers and packers. Unfortunate damages may happen either due to human errors or natural calamities.
But if you have availed a valid insurance policy for your household items, you can get compensated for damages, if any, from the moving insurance provider.
So, don’t take the risk to save just a few bucks. Avail valid moving insurance and move to your new place without much stresses and tensions.
Let’s understand now what moving insurance, types of moving insurance, the cost of moving insurance and other appropriate information about the relocation insurance.
What is moving insurance?
You have heard about home insurance that does not cover the loss or damage to your belongings while in transit. But you can make your belongings insured in transit by availing a valid moving insurance or transit (transport) insurance from one of professional packers and movers.
If you are shifting your household belongings to a new home using your own vehicle, even your vehicle insurance policy would not cover your belongings. But you don’t need to worry at all. You can avoid putting your valuable belongings at risks by availing 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 insurance policy can be either acquired form general insurance providers or hired packers and movers. There are certain items which are not covered by moving insurance policy.
As a responsible person, you ought to purchase moving insurance on your move because you care about your belongings. It is crucial to go through moving insurance policy’s terms and conditions before purchasing the same. This will help you what items are insured and what items are not insurable.
Some items that cannot be insured in transit
- Fine art
- Sport memorabilia
- Perishable items
It is recommended that you should handle these items on your own. You should pack such items on your own and carry with you only to avoid unfortunate damages.
General insurable items
- Electrical equipment
- Home appliances
- Kitchen appliances
- Garden equipment
Some factors that play a part in 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
What are the types of moving insurance offered by packers and movers?
Broadly speaking, there are two main types of moving insurance that are offered by professional packers and movers companies in India. All companies that offer relocation services must offer two specific kinds of insurance to their customers when making a long-distance or intercity house shifting.
Most packers and movers companies in India will offer these two options to choose from.
- Transit Insurance
- All-inclusive 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 the damages during transit. For examples, if your belongings are damaged during the transportation then is it covered in transit insurance.
Keep in mind, 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 valid transit insurance.
The transit insurance policy offers coverage to household items against risks of damages to goods associated with fire, earthquake, explosion, fire, collisions, accidents, robbery, etc. But you can claim for coverage only if damages happen during transportation only.
Nowadays, acquiring transit insurance has been easy. You can avail it either from general insurance providers or the packers and movers you have hired or you move.
If your packers and movers are buying transit insurance on behalf of you, then don’t forget to collect the original insurance certificate and bills of insurance providers. If you want to purchase transit insurance on your own then you can easily acquire the same online and pay the premium online as well.
Popular insurance buying portals in India
You can avail transit insurance by paying a nominal fee, i.e. 1.5% of the declared value of goods.
If you don’t want to take a chance to encounter even single item damage in your move, then it is recommended that you should consider about buying an all-inclusive insurance policy. In this option, you claim for 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 a cash settlement for any lost or damaged items. Movers can charge you 3% of declared value as all-inclusive insurance fee.
More often than not, all-inclusive is offered only by professional packers and movers. Hence, don’t forget to check if your company is insured. Check their credibility and market reputation so that you cannot feel yourself cheated on the name of all-inclusive moving insurance.
Furthermore, you must verify valid insurance documents before taking the all-inclusive insurance policy. You should terms and conditions carefully and ask for the valid bill for the same. Generally, all-inclusive moving insurance can be availed at 3% of cost 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 which are insurable.
- Declared Value Protection: In this version of moving insurance, you can get the insurance for only those items you need actually. For example, if you need moving insurance only for home appliances then you can get the same.In other words, you can say it custom insurance. You need to declare the items that need to be insured on your move. Later, packers and movers will analyze your declared items and state the current value of the items.
What are the cost of moving insurance in India?
There is a tremendous confusion among customers that what are the actual insurance charges levied by professional packers and movers companies in India. Most customers complain that they are heavily charged at the names of insurance coverage. Different customers are getting charged at the 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 upon the types 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 then you will be charged with the rates of 1.5 extra charge as insurance fee. Some companies may ask you 2% extra charge as transit insurance but you should never agree for that rate. You can purchase transit insurance online on your own.
If you buy all-inclusive moving insurance from your movers then you will have to pay 3% extra charge as insurance fee. But in this option, you will coverage against damages of goods during the entire shifting process not only in transit.
Depending upon whether you are buying transit insurance or all-inclusive insurance, you will need to declare the total value of your belongings.
For example, you want to shift the following items of different values.
- Washing Machine – Rs 27000
- Refrigerator – Rs 20000
- Air Conditioner – Rs 34000
- Microwave Oven – 12000
- Air Cooler – Rs 14000
- Sofa Set – Rs 45000
- Almirah – Rs 16000
- Geyser – Rs 8000
Hence, what amount you will have to pay as extra charges if you able the moving insurance. Let’s know the same in the context of this example.
If you choose transit insurance then the insurance rate will be @1.5% of declared value + taxes. If you choose all-inclusive insurance then the insurance rate will be @ 3%. Of declared value + taxes
The total worth of your items to be shifted or insured is Rs 176000.
Cost of transit insurance @ 1.5% = Rs 2640 + applicable taxes
Cost of all-inclusive insurance @ 3% = Rs 5280 + applicable taxes
You can learn here applicable GST Rates for Movers and Packers in India.
What documents are required to file a claim for a transit insurance policy?
Depending upon the circumstance, the insurance provider (insurer) may ask you the following documents.
- Original voice
- Bill of lading
- Packing list (inventory)
- Transportation specification
- Claim bill
Key points to remember
- Ask your movers about different insurance options available or they can offer you.
- Make it clear insurance is applicable on only those items they will pack or also on you pack.
- Ask your movers who they will determine the value of damaged items.
- Ask your movers, at what rates they will insurance service on your move.
- Check the contract properly whether your movers offer you transit insurance or all-inclusive insurance.
- If you wish to buy all-inclusive insurance then make sure the moving company is licensed, registered and credible.
- If your packers and movers are buying transit insurance on behalf of you, then don’t forget to collect the insurance certificate and original bills from the insurer.
- Check the terms and conditions of insurance policy carefully.
Disclaimer: The views expressed above are for informational purposes only. The author of this article has done proper research on exploring various industry reports and related stories. Moving Solutions does not guarantee the accuracy and completeness of the aforementioned information. We strongly advise that you must buy transit insurance on your own to avoid higher charges. If you buy insurance for moving from a general insurance company then the role of packers and movers automatically ends. So, please take this piece of article as a standard guide for moving insurance.