What is Relocation Insurance?

Relocating is possibly one of the most stressful experiences you may have in your life! Aside from organising logistics, you’ll also have to ensure that your family settles down smoothly and safely. Fortunately, having relocation insurance can greatly help you navigate this challenging international move. 

This article will cover everything you need to know about relocation insurance – ranging from the types of moving insurance coverages and how the value is being calculated. Looking to safeguard your relocation journey? Get in touch with our Relo Buddies today! 

What is Relocation Insurance?

Relocation insurance consists of a range of comprehensive coverage plans designed specifically to give you a peace of mind during your move. There are a number of insurance products available, including marine cargo insurance, house contents insurance, and also personal insurance.

Marine Cargo Insurance

Marine Cargo Insurance covers the physical damage to, or loss of your goods, whilst in transit by land, sea or air. Common triggers for cargo insurance include:

  • Natural disasters
  • Vehicle accidents
  • Acts of war
  • Piracy
  • Cargo abandonment
  • Customs rejection

The cost of your marine cargo insurance is calculated by a simple formula:

Total Value of Shipped items * Insurance Rate = Cost of Your Insurance

(What is the Total Value of Shipped Items? – Depending on your chosen type of insurance – “All Risk” Full Replacement Value Coverage or “All Risk” Full Replacement Value – the total value of shipped items will either be a sum of individual item values, or one lump sum.)

These are the main types of marine cargo insurance available:

“All Risk” Marine Cargo Insurance

This means that the international relocation service provider is obliged to repair or replace any item that is damaged, except those that are excluded from the terms of the policy. “All risk” marine insurance is further divided into 2 sub-categories:

1. “All Risk” Marine Cargo Insurance Full Replacement Value Coverage at Destination

This is the most comprehensive type of insurance, which can only be purchased if all your household items are packed professionally by your moving company. This coverage will fully replace your item at its value, with no depreciation. 

However, if you choose this type of coverage, you will need to attach your insurance application and inventory list, indexing every item you are moving. You will also need to declare the replacement value amount of each item according to their full value at the destination country. Do this thoroughly as items that are not listed will not be covered by the insurance.

You can refer to cost of living information and price index data at the embassy of your destination country, to ascertain the worth of your items.  Remember to insure the full value of your items, or risk getting reimbursement for only a certain amount of the repair cost.

2. “All Risk” Marine Cargo Insurance Full Replacement Value – Lump Sum insurance

You can simply declare a lump sum amount, which reflects your total desired coverage for your shipment. For this option, you’ll need to list down those items individually, valued at the price which is requested by your insurance company. These items will then be considered as part of the declared lump sum for your shipment.

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House Contents Insurance

House contents insurance provides protection for your personal possessions. These include household contents, such as fixtures and fittings, furniture, and other personal belongings you may have. Getting insurance for the contents of your home is definitely important during your relocation journey, as you will never know what may happen along the way.

Contents insurance plans differ according to insurance companies. So do make sure to source around for the coverage that suits you best. 

Personal Insurance

At the same time, you may also want to consider purchasing travel insurance to protect yourself against the risks associated with an international relocation. From cancelled or rerouted flights to the loss of your passport or valuable items, travel insurance is a cost-effective solution to mitigating those risks. 

Also, having international health insurance coverage can ensure that you and your loved ones are protected from the high costs of medical treatment no matter the country you are in. Depending on where you’re relocating to, healthcare in your destination country could be very expensive. Hence, having the right health insurance coverage can support the costs of your treatment as and when you need it.


Undoubtedly, it is important to ensure that you have the right relocation insurance coverage to protect your shipment and yourself when you relocate! At Moovaz, we provide a one-stop relocation platform and curate a list of trusted and quality partners who can fulfil all your relocation needs.

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