Cover contents for move
Moving is stressful and it’s easy to gloss over small details, such as your insurance cover. You’re only moving down the road after all. What could go wrong?
Most home contents policies give some cover for goods in transit and/ or storage. But don’t bank on it unless you’ve read every word of your policy.
Even if there is cover, it is almost certainly of a lower standard than your ordinary contents cover. Accidental damage cover often isn’t included while your goods are moving from A to B. The cover is usually only for fire and a few other risks such as theft by violent or forced entry into the removal vehicle, or a collision or overturning of the vehicle.
Pity the Kiwi who dropped his TV on his property as he was walking to the removal van. Because he was moving, the insurance company declined the claim for accidental damage. The Insurance & Savings Ombudsman sided with the homeowner because the TV hadn’t left the property.
At some insurers you’re not covered if your belongings are in storage temporarily rather than the removal vehicle. Others cover your belongings in storage but only if they’re in a facility operated by a commercial storage company.
With many home contents policies you’re out of luck if your container falls off a ship. If you’re moving between North and South islands that’s essential.
One homeowner had her claim declined when the container with the contents of her home toppled off a stack of containers at a South Island port. The insurer declined on the basis that her belongings were not in a vehicle at the time. The Ombudsman overturned that decision as well because it was not fair and reasonable for the owner to have cover for parts of the transit only.
It’s sometimes possible to pay for extra cover through your insurer or a carrier company. Vero, for example, has a Move NZ policy that provides accidental loss cover, which is more comprehensive than the limited fire and specified causes cover for moving within most household contents policies.
Homeowners do need to be careful that the additional policies they buy from an insurance or removal company cover for replacement value, not indemnity ( second- hand value).
Watch out for exclusions for items used for business purposes, collections, items over a certain value or sets where only one piece is lost or damaged but the whole set is then worthless. It’s also common for an “average” clause to be included in a transit policy. It means that if the insurer determines your belongings are worth $ 150,000, but you only insured them for $ 100,000, it will only pay two thirds of any claim.
John Gray of the Home Owners and Buyers Association of New Zealand ( Hobanz) was caught when some of his contents were stolen while moving and his old and new insurer and the transit cover wouldn’t pay out. “The ridiculous things is that because I could not provide ‘ evidence’ of when the items went missing they all declined cover.”