Should I Buy Removals Insurance?
To answer this question, we need to look at the different types of cover on offer.
Extended liability
Some movers offer full insurance as part of their quote. This is usually an extended liability whereby the customers goods are temporarily covered by the removers insurance. This type of cover is often limited and does not protect the customer if the remover goes out of business. As there is no declaration of the value of the goods, the insurer will usually limit pay-outs to £40.00 per item, or whatever value is written in the removers Terms & Conditions.
Removals Insurance
During the process of getting a quote from your removals company, you may be asked if you want to take out removals insurance. This insurance is specific to your goods and offers a greater level of protection than the limited liability option, for various reasons. Full removals insurance requires you to sign a declaration of the value of your goods and the cover is specific to your move, whereas limited liability requires no such declaration but limits potential pay-outs to (usually) £40.00 per item. Pay-outs are also limited to loss or damage that is specifically due to the negligence of the removals company. The cost of removals insurance can vary but is usually calculated as a percentage of the removals cost. This cover also includes loss or damage that is not necessarily the fault of the removals company. For example, if the van that is transporting your goods is involved in a motorway accident, with removals insurance your goods are covered and you can expect a pay-out. However, without removals insurance, there could be a long battle to determine who was at fault, before you receive your (up to) £40.00 per item. So, in this scenario at least, removals insurance is the far better option.
Important Notes on Removals Insurance
Most removals insurance policies are indemnity only. That is to say; not new-for-old. Insurances vary, but generally, liability will not exceed a sum equivalent to the repair or replacement of goods, whichever is the lowest sum. The insurance is taken out by the customer, directly with the insurance company. This means, even if the removals company goes out of business, the insurance is still valid. The insurance requires a signed declaration of the value of your goods. There are some items that can not be covered by removals insurance. These are usually the same items that are listed in the removals company’s terms & conditions under the section “Excluded Goods”. The contents of a carton or box may not be covered for damage if the carton or box was packed by the customer. However, if the box is lost, this rule doesn’t apply. This is a good reason to have your packing done by a professional packer from the removals company. If responsibility for your goods is transferred from one company to another, (for example if shipping overseas) you will need to have a full and detailed inventory. This is usually completed by the remover and signed by the customer. If your goods are going into storage, you will need to have a full and detailed inventory. Insurance will not cover loss or damage to goods which are seized, confiscated, removed or damaged by Customs Authorities or other Government Agencies, unless the removals company has been negligent. As the insurance policy is agreed between the customer and the insurer, any excess on the policy is the responsibility of the customer.
