International Moving Insurance
Planning an international move involves many important decisions, and one of the most critical is whether to purchase moving insurance. While you may have already consulted with a relocation specialist or logistics team, it’s essential to understand your insurance options to protect your belongings during transit.
Why You Need International Moving Insurance
Relocating overseas means that your possessions will travel long distances and may face various risks, including damage, theft, or loss. While self-insuring against certain losses might seem more economical, having comprehensive moving insurance provides peace of mind and ensures that you are financially protected against unforeseen events.
What’s on this page?
01 | Total Loss Insurance
02 | All Risk Cargo Insurance
03 | International Moving Insurance Policies
Today’s international shipping industry is highly automated and technologically advanced. Around the world, ports are being deepened to accommodate even larger ships, allowing for more efficient and cost-effective transport.
The Scale of Modern Shipping
Giant cargo ships can carry up to 35,000 shipping containers per voyage, often stacked 20 high on the deck. These massive vessels are capable of loading and unloading containers, rearranging them for the next port, and setting sail for the next destination—all within the same day. Despite the scale, everything is highly automated, and even the largest ships operate with only a skeleton crew.
What Could Go Wrong?
With such advanced technology, it might seem like nothing could go wrong—but unfortunately, mishaps do occur. Just as packages sometimes get lost in the mail or luggage goes missing from a flight, it is rare but possible for shipping containers to get lost at sea.
Protect Your Shipment with Insurance
Given the potential risks, it’s important to protect your belongings with comprehensive international moving insurance. This coverage ensures that you are financially protected against the unlikely event that something goes wrong during transit.
While the international shipping industry is highly advanced, accidents and unexpected events can still occur. Occasionally, entire stacks of containers fall into the sea. In some countries, where labor issues persist, unionized dockworkers may intentionally “lose” containers as part of labor actions. Additionally, mechanical problems or technical failures can result in damage to large numbers of containers or their contents.
You might assume that shipping companies would automatically insure against these types of losses, but unfortunately, they do not. For small clients — the owners of one of the many containers damaged at a time — there is often no effective recourse or compensation from the shipping companies.
International Moving Insurance: Total Loss Insurance
When planning your international move, it’s important to understand the different types of insurance available to protect your belongings. There are two main types: insurance against damage to your cargo and total loss insurance.
What is Total Loss Insurance?
Total loss insurance provides coverage if your entire shipment is destroyed or lost. For example, if a stack of containers collapses and your shipment is lost, this type of insurance will compensate you for the declared value of your belongings. It’s the most comprehensive coverage for major disasters or accidents that result in the complete loss of your shipment.
Preparing for Total Loss Insurance
To obtain total loss insurance, you will need to provide a detailed list of all insured items. When our movers load your shipment, we will create an inventory list for customs clearance. However, this list may not be suitable for insurance purposes, as it lacks the level of detail required for a claim. Make sure to prepare a thorough list that includes the value of each item you want to insure.
- Valuation of Precious Items: If you are insuring valuable items, you may need to provide a sales receipt or an estimator’s valuation to prove their worth.
- Flexible Coverage Options: You are not required to insure your entire shipment. The choice of what to insure is entirely at your discretion, allowing you to tailor the coverage to your needs.
Learn More About Your Insurance Options
For more information on total loss insurance and other options, consult our comprehensive guide on international moving insurance. Protect your belongings and enjoy peace of mind during your move.
Total loss insurance is typically less expensive than insurance against any risks. The policy usually covers either the entire loss or nothing.
Andrew Michaels
International Moving Insurance: All Risk Cargo Insurance
When planning your international move, it’s essential to understand the difference between insurance options to choose the best coverage for your needs. All-risk cargo insurance is the most comprehensive option, providing coverage for both total loss and partial damage to your shipment.
What is All Risk Cargo Insurance?
All-risk cargo insurance covers your entire shipment against total loss and any damage to part of your belongings. Although every effort is made to ensure your cargo arrives undamaged, multiple handling steps during transit increase the potential for damage.
Even when using a private container or a Less Than Container Load (LCL) option, such as consolidation or groupage, your belongings may be handled several times. In some countries, even private containers may need to be unloaded and transferred to moving vans for final delivery. Learn more in our guide on International Shipping Containers Explained.
Potential Risks During Transit
Several factors could cause extra handling or potential damage to your belongings:
- Manual Inspection: Approximately 5% of shipping containers are subject to random manual inspection, which could also be triggered by improper paperwork or suspicious items on the shipping inventory.
- Storage and Accessibility Issues: Storage, small vans for difficult-to-access locations, and other logistical challenges can result in additional handling.
With total loss insurance, only the complete destruction or loss of your shipment is covered. In contrast, all-risk cargo insurance protects against damage to individual items, such as a missing box or a few damaged goods.
Requirements for All Risk Cargo Insurance
To purchase all-risk cargo insurance, you must have your shipment professionally packed. This requirement ensures that your belongings are securely prepared for transit, minimizing the risk of damage. If you choose to pack your shipment yourself, you will still be able to purchase a total loss insurance policy, but not all-risk cargo insurance.
Insurance for Vehicles and Specialty Items
Automobiles, motorcycles, and other licensed vehicles must also be insured. Depending on the method of shipping, your vehicle may require different levels of protection:
- In-Container Shipping: If your vehicle is shipped in a container with your belongings, it must be securely packed by professionals. Placing a car into a container requires special equipment, such as a unique lift, which we will provide.
- RO-RO (Roll-On Roll-Off) Shipping: For larger vehicles like full-sized pickup trucks, RVs, or boats on trailers, we often use the RO-RO method. If you choose this method, ensure your vehicle is insured separately to protect it against potential damage during transit.
Get Expert Advice on All Risk Cargo Insurance
For more details on all-risk cargo insurance and how it can protect your belongings during your move, consult our guide on international moving insurance. Speak with our relocation specialists to find the best coverage for your needs.
International Moving Insurance Policies
When moving internationally, it’s important to understand that standard U.S. insurance policies do not cover damage or loss during an international shipment. Because international moves involve multiple countries and jurisdictions, your insurance policy must be truly global.
Why You Need a Global Insurance Policy
International moving insurance is typically provided by specialized marine cargo insurance companies that work with shipping companies, as they do not sell directly to consumers. This global coverage ensures your shipment is protected no matter where damage or loss may occur during transit.
Benefits of International Moving Insurance
One of the key advantages of purchasing a global insurance policy through SDC International Shipping is that we can reimburse you for the value of damaged or lost items at the destination. For example, if you are shipping a six-month-old Toyota Highlander Hybrid to Belgium, you will want to insure it for the replacement cost in Belgium, not the cost in California. Remember, the cost of items in foreign countries can often be higher than in the United States, which is one reason you might choose to ship internationally.
Choosing the Right Insurance Policy
When selecting an international moving insurance policy, be cautious of options that seem too cheap. Often, these policies only cover a portion of the move. A valid international insurance policy will provide full coverage for your shipment from door to door, protecting against loss, damage, and weather conditions.
- Ensure Accuracy: Your insurance policy is only as good as its accuracy. Make sure to provide correct valuations for all items and ensure that they are legally permitted in your destination country.
- Full Coverage: Choose a policy that offers comprehensive protection against all risks, from departure to arrival.
Our Commitment to Your Peace of Mind
At SDC International Shipping, we hope our customers never have to activate their insurance policy. However, in the rare case that it becomes necessary, we want our clients to have the best coverage available. Learn more about our international moving insurance options to ensure you have the right protection for your move.
