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 you need International Moving Insurance?
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 a lot of things that can cause extra handling or damage, so getting good insurance is a smart move.
Random Inspections
Approximately 5% of containers are subject to random manual inspections, which can also be triggered by improper paperwork, 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 guarantees complete payment for the real worth or replacement cost of your things if they are lost or damaged.
Declared Value Protection
A balanced option for 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 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 a lot of 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.
Most of the time, 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. This policy does not cover individual items that are partially damaged. 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 shipping 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 was already there before the transfer or that happens because you didn’t pack items well (especially if you did it yourself) is not 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 bad storage, or catastrophes like war and nuclear mishaps are 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 have 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 out 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 most moving companies don’t cover
- Give you more protection than just your basic moving insurance
- Give customers more options for customization and flexibility
- Usually cover theft and damage that happens by accident
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.
The final price is also influenced by your destination country and the specific risks associated with your move.
Shipping regulations for Household Goods
The first thing you should know is that your shipping rules and regulations for household goods will vary depending on the country you are moving to. In most cases, you can ship your household goods duty-free provided the goods are used and were 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/or 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!
FAQ’s
Which is the best insurance for international moves?
Best protection is usually in the form of coverage that insures against everything, and will be insured from 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?
Most reputable moving companies insist on some type of basic liability coverage, even though they are not legally bound to. 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?
All claims must be made at time of delivery by including details of any damage in photographs and writing the insurance carrier. Most providers have filed claims within 30-90 days of reporting the delivery with supporting evidence such as repair estimates and original purchase receipts.
What sort of evidence or documentation do I have to submit a claim?
Make sure to pack the bill of lading, original inventory list and photos/video 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 30-90 days to claim from receipt and notification of damage/loss on delivery.