Do I need specific insurance for international moves?

Understanding Insurance for International Moves

Yes, specific insurance is almost always necessary for international moves. Standard household contents insurance policies rarely extend coverage for goods in transit overseas, especially for the unique risks associated with international shipping.

Why International Moves Require Specific Insurance

An international move involves a significantly longer journey than a domestic relocation, often crossing borders and involving multiple modes of transport, such as road, sea, or air. Goods are handled more frequently and may be stored in various locations along the way. These factors introduce a greater potential for loss, damage, or delay, which standard insurance policies are not designed to cover.

Types of Cover Available

When moving internationally, the primary types of cover to consider are:

• Removals Company's Standard Liability: All professional removals companies operate under terms and conditions that include a level of liability. For international moves, this is often a minimal indemnity per item or per kilogram, similar to what is sometimes referred to as Released Value Protection. It typically offers significantly less than the actual replacement cost of your items.
• Marine/Transit Insurance: This is a specialised policy designed to cover goods during international transit. It addresses the specific risks of shipping by sea, air, or land, including perils like sinking, collision, fire, theft, and damage during loading or unloading. Policies are usually offered on an 'All-Risk' basis, covering most eventualities, or a 'Named Perils' basis, which only covers specific, listed events.

Key Considerations for International Move Insurance

• Valuation: It is critical to declare the true replacement value of your possessions. Under-insuring items can lead to a reduced payout if a claim is made. Most policies offer two main valuation methods:
  • Full Value Protection: This covers the cost to repair an item to its condition prior to the move, or the current market value to replace it if it cannot be repaired.
  • Declared Value: Where you specify the value of individual high-value items.
• Professional Packing: Many international transit insurance policies require that items, particularly fragile or valuable ones, be professionally packed by the removals company. Claims for damage to self-packed boxes (PBO – Packed By Owner) may be denied or subject to higher deductibles.
• Exclusions: Understand what is not covered. Common exclusions include inherent vice (faults within the item itself), electrical or mechanical derangement (unless there's external damage), loss of data, normal wear and tear, mould, mildew, or damage to prohibited items.
• Policy Excess/Deductible: This is the amount you must pay towards any claim before the insurance company pays out. Opting for a higher excess can reduce the premium.
• Purchasing the Policy: You can typically purchase marine/transit insurance directly from a specialised insurance broker, or your chosen international removals company may offer or arrange it as part of their service.
• Review Home Contents Insurance: While most home insurance policies do not cover international moves, it is prudent to check your existing policy for any limited cover that might apply, especially for items left behind or short-term storage before the main international shipment.

For both customers and removals professionals, arranging robust international move insurance is a fundamental step. It provides peace of mind and financial protection against the inherent risks of shipping belongings across the globe, ensuring that your valuable possessions are appropriately safeguarded from door to door.