Insurance Coverage for Your International Move
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It might be your grandmother’s baby grand piano or a painting you’ve had in your family for generations. No matter what kind of household goods you have to move, an important part of getting them overseas is beginning with the right documentation, knowing any shipping regulations, and getting the proper international moving insurance.
The right coverage gives peace of mind throughout your journey—whether by sea or air. Options vary by shipment value and protection level, and the final price is also influenced by your destination country and the specific risks associated with your move.
Why is International Moving Insurance Necessary?
Relocating overseas subjects your possessions to long-distance travel and a variety of risks, including damage, theft, or total loss. While moving companies are highly advanced, unforeseen accidents like containers falling overboard, labor disputes leading to intentional “loss,” or mechanical failures can damage large numbers of shipments.
Since shipping companies do not automatically provide comprehensive coverage for these events, international moving insurance is not just an optional extra—it is a critical safeguard. It ensures you have financial recourse and peace of mind, protecting you from bearing the full cost of replacing your belongings in a foreign country where replacement costs are often significantly higher.
The transportation process itself makes the necessity for protection further clearer. There are many things that can cause extra handling or damage, so getting good insurance is a smart move.
Random Inspections
Random Manual Inspections: Improper paperwork can trigger random manual inspections on approximately 5% of containers, thereby increasing the risk of handling damage.
Labor Disputes
In some ports, unionized dockworkers may intentionally “lose” containers as part of labor actions, leading to a total loss of your shipment.
Logistical Handling
The use of storage facilities and smaller vans for difficult-to-access final destinations results in additional handling cycles for your goods.
Maritime Accidents
Severe weather, mechanical failure, or other unexpected events at sea can cause whole stacks of containers to go missing.
Higher Replacement Costs
A key advantage of insurance is reimbursement based on the replacement cost in your destination country, which is often much higher than the item’s original value in the United States.
Types of International Insurance
When you look into insurance, you will usually come across four primary types. To choose the correct coverage for your needs, you need to know the difference between them.
Full Value Protection (FVP)
This policy gives the maximum coverage and is best for valuable or delicate things like antiques and fine art. It ensures full compensation for the actual value or replacement cost of your belongings in the event of loss or damage.
Declared Value Protection
This option provides a balanced approach for insuring standard household goods. You declare a total value for your entire shipment, and this serves as the maximum liability for the carrier. It is not a dollar-for-dollar payout per item but offers substantially more coverage than RVP.
Released Value Protection (RVP)
Released Value Protection (RVP) is the cheapest and simplest choice, and it is often offered for free. There isn’t much coverage; it’s based on weight (for example, $0.60 per pound) instead of actual value. It only works for cheap, sturdy things that you can afford to replace.
Third-Party Insurance
Third-party insurance gives you a separate, flexible way to have the most peace of mind. When you buy insurance from a company that specializes in it instead of the mover, it frequently has more customized coverage and can fill up the gaps left by the regular mover-provided policy.
Each international moving company offers different types and degrees of protection, so be sure to have a thorough conversation about the available coverage and what each type provides. Be sure to discern the difference between insurance for air freights versus ocean freights, respectively.
International Cargo Insurance Options
Here are some sorts of coverage that many firms offer (the titles may be different), but you might also want to call a third-party provider to see what your alternatives are:
Legal liability
This is your most basic insurance for many international moving companies, where your goods are automatically covered under a legal liability standard based on what the transportation industry sets.
Usually, the ocean carrier is responsible for approximately $500 per package (coverage for air shipments is determined by weight). While this protection is minimal, it ensures a basic level of compensation in the event of total loss, though partial losses are usually excluded.
Total loss coverage
Under Total Loss Coverage, compensation applies only if your entire shipment is lost, destroyed, or damaged beyond recovery. The policy does not provide coverage for individual items that sustain partial damage. It’s a low-cost option for those shipping non-fragile, replaceable goods but is not recommended for high-value moves.
All-Risk Cargo Insurance
The safest (and most expensive) bet when it comes to shipping your goods covers any possible loss or damage during ocean transit. Usually, this includes water or fire damage, theft, partial loss, breakage, and more.
Additionally, it covers non-delivery of goods and improper stowage by the shipping company. This type of insurance is recommended for all household goods and automobile shipments.
What is not covered by International Moving Insurance?
Most of the standard international moving insurance policies contain these key exclusions:
Pre-Existing Damage & Poor Packing
Damage that existed before the transfer or was caused by poor packing (especially if you did it) isn’t covered.
Inherent Vice & Natural Deterioration
The policy will not cover damage caused by an item’s inherent weakness or natural aging, such as wood cracking from climate changes, leather drying out, or glass breaking under its stress.
Confiscation & Prohibited Items
Losses from items being seized or destroyed by customs authorities, or any items that violate international trade laws, are excluded.
Pests, Neglect, and Nuclear/War Risks
Damage from bugs, mice, mold from unsafe storage, or catastrophes like war and nuclear mishaps is usually not covered.
Valuables & Data
Most policies do not cover high-risk items—such as cash or jewels or significant papers and securities, including data on computers and other electronic equipment—unless they are specifically listed in the policy.
How to Choose the Right Insurance?
Choosing the right insurance coverage for your international relocation comes down to three primary considerations: what you’re moving, how much money you have to spend, and what you need specifically. These are the main coverage options:
Goods and Belongings Insurance
Moving companies typically offer different levels of liability coverage for your household items as discussed above, i.e.,
- Full Value Protection (FVP)
- Declared Value Protection (DVP)
- Released Value Protection (RVP)
Additionally, companies also offer all-risk coverage insurance that has larger benefits. For those requiring temporary storage during their move, additional storage insurance can be arranged to protect your belongings while they’re in storage facilities.
The best way to choose the right insurance is to get in touch with our expert and get a free quote based on your overseas moving type and destination.
Third-Party Insurance Policies
Specialized coverage through independent insurance providers is available to fill gaps in typical moving company policies. These separate policies:
- Cover risks that are typically not included in standard moving company policies
- Give you more protection than just your basic moving insurance
- Give customers more options for customization and flexibility
- This insurance typically covers theft and accidental damage.
Vehicle Shipping Insurance
This coverage is tailored for vehicle transportation and provides insurance on your car while you ship it overseas. Key features include:
- Safeguard against damage, theft, shipping accidents, and conveyance mishaps
- Above and beyond the basic liability most moving companies provide
- Essential protection for luxury, classic, or high-value vehicles
- Complete protection against repair or replacement costs
Each kind of insurance fulfills a unique role in protecting different facets of your international moving, enabling you to tailor coverage to target specifically what valuables and concerns matter most.
What Will Insurance Cost?
The cost of international moving insurance depends primarily on the type of policy you choose, the value of your goods, and the extent of coverage. As a general rule, premiums typically range from 1% to 3% of your shipment’s total value.
For instance, if you have $25,000 worth of goods, you will probably want to take out a policy that covers at least that, right? In this case, you may be looking at a price of somewhere around $200 to $250.
Your destination country and the specific risks associated with your move also influence the final price.
Shipping regulations for Household Goods
Your shipping rules for household goods will depend on the country you’re moving to. In most cases, you can ship your household goods duty-free, provided they were used and in your possession for at least six months to a year prior to your move.
Typically, electronics and new items are restricted, and you will need to pay duties and list these items separately.
Shipping Tips
- It is not advised to pack household shipments by yourself for international moves—especially artwork or antiques—for the following reasons:
- Your items will be traveling a long way, and you’ll want experienced professionals to pack and ship your goods to avoid any damage
- Many countries will not accept “PBO” (Packed By Owner), which could cause a delay at customs
- It may be difficult to obtain an insurance policy that will cover shipments that are not professionally packed. And if you can find one, it will likely be expensive
- Before you have a surveyor come to your home to give you your moving estimate, you should have your artwork, antiques, or any other valuable items appraised—this will give you an idea of each piece’s value
- Upon having your valuables appraised, you should then have a better idea of how to insure your items
Ready to Protect Your Belongings?
Need an international moving company that offers top-notch insurance at affordable prices? We can help! Call International Sea & Air Shipping to schedule your in-home survey and find out more about what we have to offer!
FAQs
Which is the best insurance for international moves?
The best protection is usually in the form of coverage that insures against everything and will cover damage, loss, or theft in transit. This is most popular for valuables and belongings. Please consult our moving professionals for specifics on this insurance coverage.
Is moving insurance mandatory?
Despite not being legally required, most reputable moving companies insist on basic liability coverage. Though you may not need as much coverage for small shipments, we strongly suggest full insurance so that no incident can damage or destroy your items during overseas transport.
What is the process for filing an insurance claim?
Claims must be made at delivery by sending the insurance carrier photos and written details of any damage. Most providers have filed claims within 30–90 days of reporting the delivery with supporting evidence, such as repair estimates and original purchase receipts.
Could you please let me know what type of evidence or documentation is required to submit a claim?
Make sure to pack the bill of lading, original inventory list, and photos/videos of damage, as well as the estimate for repairs, your insurance policy, and claim form. Keep receipts for large purchases.
What’s the typical claims timeframe?
Time constraints range between 30 and 90 days to claim from receipt and notification of damage/loss on delivery.