What moving insurance actually covers (and what it doesn’t)

Moving house comes with risk. Boxes are stacked. Furniture is lifted. Trucks are loaded and unloaded in a hurry.

Many people assume they are covered if something goes wrong. The reality is that moving insurance varies widely depending on the policy, the provider and how you are moving.

Before moving day, it is worth understanding exactly what is covered and what is not.

Moving insurance is often referred to as transit insurance. It is designed to cover your belongings while they are being transported from one address to another.

Depending on the policy, cover may include:

• Damage during packing and unpacking by professional movers
• Damage while loading or unloading the truck
• Loss or damage caused by vehicle accidents
• Theft during transit following forced entry
• Fire or major collision events

Most policies are based on the declared value of your goods. Premiums are commonly calculated as a percentage of that value and in Australia often range between 1 percent and 3 percent depending on the level of cover and risk profile.

Some removalist arranged policies may include limited liability cover rather than full replacement cover. It is important to understand the difference.

Exclusions are where many claims fall over.

Moving insurance may not cover:

• Damage caused by owner packed boxes
• Pre existing damage or wear and tear
• Fragile items unless professionally packed
• Mechanical or electrical breakdown unless caused by an insured event
• Losses where there is no clear evidence of forced entry
• Delays that cause inconvenience but no physical damage

If you are moving yourself using a hired truck, standard rental insurance only covers the vehicle. It does not cover your furniture or personal belongings.

If you engage casual movers through online platforms, they may not provide any insurance at all for your goods. In that case, you carry the financial risk unless you arrange separate transit cover.

Some home contents insurance policies include limited cover while moving, but this varies significantly between insurers.

Common limitations include:

• Cover only applies if you use a licensed professional removalist
• Loading and unloading may be excluded
• A higher excess may apply
• Cover may only apply to accidental damage caused by a vehicle collision

Removalist provided insurance may offer broader transit specific protection, but you need to confirm whether the provider is issuing insurance under an Australian Financial Services Licence or simply offering limited liability.

Standalone transit insurance policies may provide more comprehensive protection, particularly for higher value interstate moves.

If you are paying around $350 to $500 per month for short term storage for a standard unit in a capital city, that fee is for the storage space itself. It does not automatically mean your belongings are insured.

Most self storage facilities charge separately for insurance or require you to arrange your own cover. The monthly rental usually covers the unit, basic site security and access. It does not automatically cover theft, fire, flood or accidental damage to your items inside the unit.

In some cases, you may already have limited cover through your home and contents insurance policy. However, this often depends on strict conditions such as:

• A time limit on how long items can be stored
• Security requirements at the storage facility
• Caps on the value of individual items
• Exclusions for jewellery, cash, collectibles or business equipment

Some storage providers offer insurance as an optional add on. Others require proof that you have arranged cover elsewhere before you move in.

The key point is simple: paying for storage does not automatically mean you are insured. Always check who is responsible for cover, what is included, what is excluded and what the claim limits are before placing your belongings in storage.