Why is transit insurance important for home relocation?

You relocate to a new city for a new opportunity or a job transfer for growth or to nurture an ability to start something new. Although exciting and rewarding your home relocation maybe, moving also needs a whole lot of preparation and requires you to undergo certain pain. You must do a lot of research to hire the right set of Packers and Movers to help you relocate with ease. But even if you have hired the professionals to do the job for you, your belongings are still vulnerable to damage, theft and accidents warranting you to opt for ideal transit insurance for home relocation.

Why is transit insurance important for home relocation

Most individuals think they can complete the home relocation process without having to buy an insurance cover for their belongings. This idea often props up when the moving company you have hired will promise to deliver your goods safe or will take care of the loss during transit. This is exactly where they are found mistaken since none of the Movers and Packers and transporters cover transit damages. The truth is, they charge you an illegal fee of flat 3% of the declared value while the actual transit insurance premium may be between 0.9% to 1.4%.

 What is transit insurance?

Transit insurance policy is designed to cover cargo against various transit risks like accident, theft, fire or damage due to natural calamity. Usually, Movers and Packers offer transit insurance that covers your belongings like home appliances and furniture against transit damage or during storage. The premium is based on the value the insured has declared for the goods in transit and the amount of risk the insured can bear for their goods in transit. The insurance may or may not cover the handling aspect of the goods while loading or unloading or for goods in storage.

What are the various types of transit insurance policies?

Depending upon your specific requirements, the transit insurance policies are standardized under the following types;

  1. Cargo insurance: This policy exclusively covers the cargo on the truck.
  2. Time policy: This type of transit insurance is covered for a limited period as agreed upon
  3. Valued policy: This type of insurance policy covers goods subjected to a pre-determined value. In case of a mishap, they claims are reimbursed subject to the fixed value mentioned at the time of buying the policy.
  4. Hull Insurance: This is the insurance against the value of ship loss. It covers the torso and hull of the vessel.
  5. Liability insurance: Insurance compensation in this case is measured based on the total liability insured.
  6. Mixed Policy: This type of policy covers a mix of time and voyage policy
  7. Unvalued Policy: In this type of policy, the exact insurance amount is calculated by surveying and inspecting the total damage. The exact claimable amount is assessed after the accident.
  8. Port risk policy: In this type of policy, the risk is covered when the ship is stationed at the port.
  9. Floating policy: Multiple shipments are covered in this type of policy. A fixed sum is determined to cover multiple shipments.
  10. Fleet policy: Several ships or trucks belonging to a single owner are covered under a single policy.
  11. Block policy: This type of insurance policy covers the cargo on door-to-door basis even if it includes the transport with a mix of land and water at either end.
  12. Single Vessel Policy: Only one vessel or truck is covered under this type of policy
  13. Named Policy: Ships are covered under their name in this type of transit insurance policy. The name of the ship is mentioned in the policy.
  14. Blanket policy: Protection amount is pre-paid at the time of buying the policy. The amount is adjusted during the claims settlement.
  15. Composite policy: One insurance policy has multiple owners under this policy and each owner of the policy is accorded a fixed sum.

Tips of avail transit insurance

That you need to insure your goods against transit damage is given. You are not only securing your goods, but are also securing the memories attached the goods you have painstakingly collected during each phase of your life. Realizing that all your belongings are secured during transportation will help you breathe easy once you have purchased the transit insurance policy.

You are required to identify your household goods that carry an extraordinary value. Likewise, you must advise the insurance company about the value you want to declare for the goods in transit. The items may be;

  1. Crystal
  2. Leather sofa
  3. Antiques
  4. Home appliances
  5. Cameras
  6. Computers
  7. Expensive carpets
  8. Piano
  9. Marble statues

How to claim transit insurance?

  1. Utmost care: Firstly, the insurer is supposed to take utmost care of the goods as if they are not insured. They must consider all measure to take reasonable care of the goods in transit.
  2. Serving notice to insurance company: Communicating with the insurance company for the loss or damage of goods is the first step to be taken to claim transit insurance.
  3. Survey of goods: Survey of the goods is the next step to be followed under the standard procedures. A certified insurance surveyor is appointed by the insurance company to carry out the survey of damaged goods.
  4. Condition of goods: The goods owner takes the delivery unsuspectingly when the outward condition is normal. On opening the packages, they may find the goods in damaged condition. The insured should immediately call the insurance company in such a case and call for the surveyor.
  5. Missing goods: The insured must immediately lodge a complaint in case any of the packages are found missing. This is one of the formalities to claim transit insurance under import and export trade.

The importance of IBA approval for Transporters

We at MovingNow hope we could explain well about the documentation of transit insurance policy and claims procedure. If you wish to have more information about the formalities, please call us on 8886663106 or mail us on wecare@movingnow.in to guide you further on the formalities of buying transit insurance cover and settlement of claims.

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