Why is Insuring Your Household Articles Important during Transit?

Transit Insurance to Protect Your Household Articles during Transportation

Transit insurance is designed to provide coverage against different transit risks such as accidents, fire, theft and certain other types of losses specified in the insurance policy.

Most of the time, packers and movers give transit insurance that provides coverage of your household articles such as furniture and home appliances against damage due to transit or during storage.

The premium of this marine insurance policy provided by the packers and movers is as per the value of the goods you have declared and the amount of risk that you can bear for your goods that are in transit.

This type of insurance policy may or may not provide coverage related to handling aspects of the articles while unloading or loading or for the household articles that are in storage.

Safety

Even if you have hired the most professional movers and packers for safely relocating your valuable household articles, then also they are exposed to damage, accidents, and theft. All these unfortunate happenings warn you to opt for the most suitable transit insurance policy for a home relocation.

However, on the other hand, a transit insurance policy provides cover against the financial losses related to your household articles from the point they are getting loaded at the origin until it reached and unloaded safely at the destination.

Diversely a transit insurance policy is known as Single Voyage Policy or Marine Inland Transit Policy that offers two types of covers.

• Inland Transit (Road or Rail) A: It is an all-risk cover policy.
• Inland Transit (Road and Rail) B: It provides basic cover for some restricted risks.

These policies do not provide coverage for any oceangoing voyage or out of India transits.

Here’s Why Insuring Household Articles Is Important

The reasons for or importance of insuring your valuable household items while relocating to a new place are mentioned below:

It is a policy of ‘Short Duration’-

A transit insurance policy is a short duration policy wherein the coverage starts from the time your goods leave the place that is mentioned in the policy to the outset for the transit and continues until the normal course of transit, which includes customary trans-shipment if occur any until the item is delivered to the final destination or warehouse that is mentioned in the policy. So, we can easily avail of this policy while shifting our household items.  

For instance, suppose you like to send a consignment valued Rs. 25 lakhs from Mumbai to Chennai. The premium that you have to pay for basic cover will be approximately Rs.3,200 and if you add cover for flood, strike, civil commotion, and riots, then you may have to pay approximately Rs.600 extra for the same. 

While inland transit policy A covers all risks except the rainwater damages, Inland transit B covers basic accidental damages.

Note: To learn about the coverages and exclusions in detail, read your policy documents carefully before purchasing.

Common Mistakes to Avoid When Choosing Transit Insurance

Transit insurance is essential for protecting your belongings during a move, but many overlook key details that can affect their claims. Here are some common pitfalls to be aware of:

1. Declaring a Lower Value - Trying to cut costs by undervaluing your items can lead to reduced compensation if something goes wrong. Always provide an accurate estimate of your belongings' worth.
2. Overlooking Policy Exclusions - Some policies exclude damages caused by poor packing or handling errors. Carefully read through the exclusions to avoid surprises during claims.
3. Selecting Minimal Coverage - Basic policies may not cover events like theft, floods, or strikes. Comprehensive coverage offers broader protection and can be worth the extra cost.
4. Forgetting Storage Coverage - If your items will be stored at any point during the move, confirm that the policy includes coverage for this period. Many transit policies only cover goods while they are being transported.
5. Last-Minute Purchases - Rushing to buy insurance right before the move can lead to oversight. Secure your policy early to ensure all details are in place.

The Final Words!

As per the insurance policy, you being insured, have to make all the necessary efforts to minimize your losses and hence help the transit insurance company to pursue any reimbursements or recoveries of your losses. Generally, there is an excess of approximately 0.50% or a minimum of Rs. 5,000 on each claim you make. The reason for the same is clear which is at least you can purchase a new Television if your old TV is damaged during transit