Removalist Insurance: A Plain English Guide for Your Move
Removalist insurance can mean two different things, and mixing them up is how people end up out of pocket. One is the cover a removalist holds to protect its own business. The other is a policy on your belongings, usually called transit insurance. The NSW Government says removalists aren’t legally required to insure your property during a move, so cover for your goods is something to ask about, never assume.
We have worked as Sydney removalists for more than 20 years. We’re AFRA accredited and fully insured, and we offer removals insurance options, so we have a stake in this topic. This guide is general information, not insurance advice. It doesn’t take your circumstances into account, policies differ, and you should read the policy document before you decide.
Do removalists have insurance?
Most do, though rarely the kind people imagine. The NSW Government’s advice on choosing a removalist says most removalist companies only insure their vehicle against accidents, and it recommends getting your own insurance for your move.
AFRA accredited removalists carry more. The NSW page says they’ll have public liability insurance and can provide transit insurance, and AFRA’s moving insurance page adds third party property, motor vehicle and carrier’s legal liability insurance to its membership requirements. Search AFRA’s Find a Removalist directory by suburb or postcode to check a business for yourself.
A removalist’s own cover protects the business
Public liability and carrier’s legal liability policies respond to events the business is liable for. Ours works that way: it’s there if we are responsible for loss or damage to your goods. It isn’t a policy in your name.
The gap is damage that isn’t the removalist’s fault
A fire can spread from next door into the building holding your goods. Another driver can run a red light and hit the truck. A pet can trip a removalist mid carry. In each case the crew may have done nothing wrong.
That matters because the ACCC’s guidance on compensation says a business doesn’t have to pay for damage or loss its service didn’t cause. The space between “the removalist did something wrong” and “something went wrong” is the space a policy on your goods is meant to fill.
Be careful with the words free insurance
Some removalists advertise free insurance. Compare what the policy covers, because a business can be insured for events it’s liable for, as all AFRA members are, without your goods being insured at all.
How does removalist insurance work?
Transit insurance is a policy on your goods while they’re packed and moved. AFRA describes it as cover designed for household goods going from one home to another, including periods in storage. If a removalist arranges it, AFRA says they should give you a Product Disclosure Statement (PDS) and a Financial Services Guide (FSG). If they can’t, they may not be qualified to sell it.
Every policy comes down to three questions: which events are covered, how the payout is worked out, and when cover starts and stops.
Restricted cover vs full cover
Restricted cover answers major events. Full cover reaches into the handling of your goods. Here’s how they compare on the cover we offer.
| What goes wrong | Restricted cover | Full cover |
|---|---|---|
| Fire, explosion, lightning or flood | Covered | Covered |
| Collision or the vehicle overturning | Covered | Covered |
| Loss or damage from an external cause during packing, loading and unloading | Not covered | Covered |
| Accidental damage | Not covered | Covered |
Labels change between insurers, so compare events, not names. Zurich’s Home Removals Insurance PDS, for example, sells Silver, Gold and Platinum. Silver is built around events such as fire, flood and collision. Gold and Platinum add accidental loss or damage.
Market value vs replacement value
This decides what a payout is measured against.
- Market value. What the item was worth at the time, after allowing for age, condition, use and fair wear and tear.
- Replacement value. What it costs to replace the item. On our replacement basis, that’s up to the amount you declared on the insurance declaration form, or the cost of replacing it with a similar make and model.
The gap shows up on older things. A tired lounge may be worth very little on the market, yet replacing it costs real money. Moneysmart says most contents policies pay replacement value, so don’t assume a transit policy works the same way as your home policy.
Consumer law has a similar logic. In one ACCC example, a dry cleaner that ruins worn curtains pays part of the cost of new ones, because they already had wear and tear. A claim against a business won’t necessarily buy you a new item either.
What you declare is usually the ceiling
QBE’s home contents in transit wording says the most it pays can’t exceed the sum insured. Zurich warns that you may be underinsured if you pick too low an amount, and its replacement basis also caps any one item unless a higher amount is agreed and shown on your schedule. It pays computers up to market value, even under replacement cover.
So don’t guess low, and list expensive items individually. The Insurance Council of Australia’s contents calculator gives a rough idea of what a household costs to replace.
Does home contents insurance cover a move?
It might, in part, so check your own policy before you buy anything else. The Queensland Government’s page on using a removalist says home and contents insurance may include transit cover, and that your policy may cover things at both the old and new home for a limited period.
Cover can be narrower than it sounds. Suncorp’s FAQ, as one example, offers some cover during a permanent move for fire, flood, or a collision, overturning, accident or theft of the vehicle carrying your contents, subject to limits and exclusions. That’s a list of events. Whether a television dropped on the stairs counts is a question for your insurer.
Read your PDS or ring your insurer and ask:
- Are my belongings covered in transit, and for which events?
- Am I covered for accidental damage while a crew loads and unloads?
- Is there a limit for the move, or for each item?
- How long am I covered at both addresses, and in commercial storage?
What removals insurance commonly leaves out
Exclusions vary, so the PDS is the final word. Check these first.
Boxes you packed yourself
Read this one twice. Packing your own cartons can mean less cover, even when the rest of the move is on full cover.
On our options, boxes you pack yourself can be insured, but only on restricted cover. Damage to or loss of the contents is excluded unless the carton itself shows external damage, and a missing carton is capped unless you supply an itemised list of its contents before transit starts.
Other insurers draw similar lines. Zurich’s Gold and Platinum are only available when a carrier packs and transports the goods, and if you pack them yourself, its cover starts once they’re on the vehicle and stops when unloading begins. QBE’s wording also ties owner packed cartons to a detailed carton inventory supplied before transit.
Picture a carton of glasses you packed and taped yourself. It arrives with the outside unmarked and the glasses broken. On wording like ours, there’s probably no claim, whichever level you chose for the rest of the household.
You can split the job. Our packing and unpacking team can take just the breakables, one room or the whole house, using packing paper and bubble wrap for glassware, dinner settings and valuables. You pack the linen and books. Ask your insurer how a part packed move is treated. Our packing service guide explains what’s involved.
If you’d rather pack it all, use proper moving boxes, follow our guide to packing fragile items, and list each carton’s contents before the truck arrives.
Cash, jewellery and collections
Zurich’s definition of insured goods leaves out cash, jewellery, precious gems, documents of value, and stamp or other collections, along with living plants and pets. Keep those with you on moving day. If you’re moving antiques or fine art, raise them before you declare anything and ask how they’re treated.
Wear, delay and breakdowns
Zurich also excludes delay and wear and tear. Mechanical or electrical breakdown is out too, unless there’s external evidence of an insured event or you hold Platinum. A fridge that won’t start at the new house, with no mark on it, is a hard claim.
Storage cover is a separate question
Don’t assume transit cover follows your goods into storage. The NSW Government says extending it over a storage period is a separate premium. Zurich says goods stored at your request aren’t insured unless it has agreed and the period is on your schedule, and it won’t cover a self storage unit. QBE’s wording runs for up to 30 days in store unless extended.
We offer two routes: separate storage insurance while goods are at our facility, or a transit policy with a storage extension that covers them there as well. Our modular storage has constant surveillance and restricted access, which helps, but security isn’t insurance.
If settlement slips and your goods stay longer than planned, talk to your insurer before the cover period runs out. Our guide to moving items into storage covers the preparation.
Is removals insurance worth it, and what do I need?
Extra cover isn’t compulsory with us, and we can’t tell you what to insure. That call is yours. These questions usually decide it.
- Could you replace it? Add up what the household would cost to replace if a whole load were lost.
- What’s already covered? Start with your home contents policy, and check how your own packing affects any cover.
- How far is it going? An interstate move means longer in the truck and sometimes storage. Our guides to moving from Sydney to Melbourne and Brisbane cover the planning.
- What’s irreplaceable? Insurance pays money, and it can’t give you back a family piece. Carry those yourself if you can.
- Does everything need cover? No. If you insure only some items, a declaration lists them.
How to complete an inventory and declaration
The inventory says what’s moving: the NSW Government says your contract should include one, and AFRA’s inventory form is a room by room checklist. The insurance declaration says what’s insured and what it’s worth.
Our declaration is set out room by room, with space for specified items and their values. When you sign, you’re confirming the values are correct as far as you know, that you’ve told the removal company anything that could affect the risk, and that you’ve received the FSG, policy wording and PDS. Don’t sign that line until you have. If you don’t want extra cover, you don’t need to complete one.
The signature matters. Zurich’s PDS explains that you have a duty under the Insurance Contracts Act to take reasonable care not to make a misrepresentation, and that the insurer can cancel the contract or reduce a payment if you don’t.
- Note existing marks. The Queensland Government suggests recording scratches and dents, photographing items and boxes, and numbering each carton and item.
- Value things on the basis you’re buying, market or replacement.
- List expensive items separately, and keep a copy of everything you sign. Our moving checklist helps you get organised early.
What to do if something is damaged
Your policy sets the rules for a claim, so follow it first. As a general guide, work in this order.
- Check what you can before you sign. QBE’s wording says not to sign a delivery docket unless everything has arrived in good order. Short of time? It suggests adding “Subject to checking when unpacked”.
- Open any carton that looks damaged, wet or stained first. Zurich’s PDS asks for this on delivery.
- Photograph the damage and keep the item and its packaging. NCAT lists photographs among the evidence to gather for a claim.
- Tell your removalist straight away, then confirm it in writing. The ACCC says contacting the business is your first step.
- Notify the insurer as soon as you can. Time limits vary: Zurich’s PDS allows 30 days, and QBE’s says as soon as possible.
- Don’t repair or replace anything until the insurer agrees. Zurich and QBE both require this.
- Keep notes of every call and a copy of every email.
Your consumer rights, whatever cover you have
Insurance sits on top of your consumer rights. The NSW Government says consumer guarantees include removalist services, which must be provided with due care or skill, taking all necessary steps to avoid loss and damage. The ACCC’s consumer guarantees page says a business can’t take those rights away, including by saying it isn’t responsible for problems. Remedies can include a refund, further service to fix the problem, and in some cases reimbursement for damages.
Know which complaint goes where
The ACCC says consumer guarantees don’t apply to financial products such as insurance, so the path depends on who you’re dealing with.
- Your removalist. Raise it with the business first. If that fails, NSW Fair Trading takes complaints, with details of the issue and copies of your correspondence. NCAT hears consumer claims, generally within 3 years of the problem arising, and can order payment of money.
- Your insurer. Start with the insurer’s own complaints process, set out in the PDS. After that, the Australian Financial Complaints Authority is a free, independent service for complaints about its member firms, including insurance.
If you’re moving a business
Office moves work differently. The ACCC says services to transport or store goods for business purposes aren’t covered by consumer guarantees. If you’re planning office removals, read the contract and the cover closely. Our office relocation guide covers the planning.
Questions to ask before you book
Ask what insurance the removalist holds, whether a policy on your goods is included or extra, whether you can read the PDS and FSG before you commit, and who you contact to claim. Get the answers in writing. Our guide to choosing Sydney movers covers the other checks, our removalist cost guide explains how a move is priced, and our removalists Sydney page lists the services we offer.
Frequently asked questions
Do removalists have insurance?
Most do, but usually for their own vehicle or business, not your belongings. The NSW Government says removalists aren’t required by law to insure your property during a move. AFRA members must carry public liability and carrier’s legal liability insurance, and accredited removalists can provide transit insurance on your goods.
How does removalist insurance work?
You take out a policy on your goods, usually called transit insurance, through your removalist or on your own. If an insured event happens, you claim from the insurer. Our insurance options page explains the cover we offer, and the PDS has the full terms.
Are removalists liable for damage?
They can be. Under Australian Consumer Law a removalist must use due care and skill and take steps to avoid loss and damage, and it can’t remove those rights by saying it isn’t responsible. It generally doesn’t have to pay for damage its service didn’t cause, such as another driver hitting the truck. That’s where a policy on your goods helps.
Is removals insurance worth it?
It depends on what your goods would cost to replace, what your contents policy already covers, who is packing and how far they’re going. We can’t advise you on what to insure. Weigh the cost of cover against what you could afford to lose, then read the PDS.
Does home contents insurance cover moving house?
Sometimes, and often only in part. Some policies include cover in transit, or at two addresses for a limited period, but events and limits vary. Check your own policy or ask your insurer.
Can I insure boxes I pack myself?
Usually, but with less cover. On our options, boxes you pack yourself are limited to restricted cover, and damage to the contents is excluded unless the carton shows external damage. Other insurers set their own limits, so check the PDS, or ask our packing team to handle the breakables.
Is moving insurance in Australia compulsory?
Extra cover isn’t compulsory with us, and the NSW Government says removalists aren’t required by law to insure your property during a move. It still recommends getting your own insurance. If you skip it, check what your home contents policy covers.