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Types of transit insurance cover
Protection is available for single transits or even on an annual basis, and companies will work with you to produce specific wordings for a particular type of risk or commodity, such as perishable foods or bulk goods.
Household Removals insurance protects the financial investment in your property during transit. Cover includes an extended transit period, from the “floor” of one residence to the “floor” of another, including storage in the normal course of transit.
There are conditions that can give you the option to either insure your property for loss or damage caused by specified events including:
- fire, flood, collision or overturning of the land conveyance
- fire, collision, crash or forced landing of the aircraft
- fire, collision, stranding, sinking or contact of the ship or vessel
Or all risks from any external cause, including breakage, scratching, denting, chipping, bruising, theft, pilferage and non-delivery.
Sea or air transit insurance and other terms
There are policies that can provide, where the transit is by air or sea, automatic cover for salvage and general average contributions and loss or damage to property caused by war or warlike activities while on board the carrying vessel or aircraft.
You can choose to insure your property for its current market value or for its new replacement cost (property up to 10 years old). Benefits for which you are insured under a policy are payable when your application for insurance has been accepted, the premium has been paid, an insured event (causing loss or damage to your property) occurs during the period of insurance and when your claim is accepted by the company.
When a claim is paid a number of aspects in calculating the amount payable are considered, and these can include the amount of loss or damage, the excess (if any), the sum insured, the terms and conditions of the policy and your taxable status for GST purposes.
The amount companies will charge for an insurance policy is the total amount of the premium that they calculate to cover the risk plus any relevant government charges (such as stamp duty). This is the total amount payable, shown on your schedule, and is the amount you must pay. If you change your policy in any way you may be required to pay an additional premium.
Before accepting a policy, it is important that you read all of the details to be sure that it gives you the protection you need; insurance that doesn’t cover the necessary basis may be the same as no cover at all. You should be aware of the limits on the amounts a company will pay out, and be aware of policy definitions, exclusions and limitations. Check with a trusted insurance broker if you aren’t sure and make certain that your treasured possessions aren’t left open to risk.
