Moving Insurance - Am I Covered?

Every single person that is moving house - whether you are going interstate, or two streets over - is advised to get moving insurance. Standard home and contents policies don't cover the moving period; and a removalist will always need you to legally relieve them of responsibility for damage to your goods ... otherwise their massive insurance premiums would double the cost of hiring a removalist.

However, even for those that do the right thing and take out moving insurance, there is the potential to be left with damaged items and no insurance payout at the other end. If you save cash by packing your own goods, you may render your moving insurance null and void. PBO (Packed By Owner) goods are often excluded from insurance policies, so today we explore whether you are covered by moving insurance for goods that you pack yourself.

Why Are PBO Goods Not Usually Covered by Insurance?

PBO goods are usually not covered by insurance for the same reason that moving companies don’t have their own general damage insurance - the level of risk to the insurance company is simply too great. There is quite a lot of expertise involved in packing containers for moving, and PBO goods quite often include one or more of the following weaknesses:

• Overloaded containers
• Heavy items are packed on top of lighter items
• Improper wrapping and buffering
• Poor construction of the container itself

Also, the moving company hasn’t had the opportunity to inspect the contents of the cartons before they were in transit. From the insurance company's point of view, there is no guarantee that the damage didn’t already exist prior to the move.

But my moving insurance policy says that PBO goods are covered...

While most insurers simply refuse to offer coverage for goods that have been packed by the owner, some will have a limited insurance option for these goods. Owners need to be aware of the limitations of these policies, though. Ordinarily only certain events would be covered, such as:

• Loss of an entire container of goods
• Damage to contents that is caused by fire, vehicle overturn or a collision

Loss of individual boxes from within the consignment, or damage to goods within the consignment is usually not covered.

In policies where it is quite clear that damage to goods packed by the owner is covered by the premium, owners need to take special care to verify the initial condition of the goods. This means taking measures like:

• Taking dated photographs of everything that goes into your boxes, which clearly show the condition of the item
• Having the moving company sign an inventory of goods, listing the number and type of boxes that you're transporting with them
• Ensuring that you have proof of the value of each item, should it need to be replaced. You'll need an original receipt in many cases.

There's no guarantee that PBO goods are in the best shape to be lifted, stacked, unstacked, driven, flown or shipped hundreds of miles. Even if your insurance company chooses to cover you, making a claim can become time-consuming and draining, especially without solid proof of initial condition. In many cases, the added premium for an insurance company to cover PBO goods can equal the cost of simply having the moving company do the packing for you! It is always advisable to have your goods professionally packed, for safety's sake.