Who pays if a removal company breaks or loses my things in transit?

What the company must and need not insure. The NSW Government is direct about it: a removalist is not required by law to provide insurance for your property during a move, and most companies only have insurance that covers their vehicle if an accident occurs. The Queensland Office of Fair Trading says most removalists only have insurance for their own vehicles, and that you will probably need your own insurance for possible damage or loss of your goods. The Northern Territory’s Consumer Affairs puts it as peace of mind: it says the goods should be insured for loss or breakage, that there are insurers that write this cover, and that you do not have to use the one the removalist recommends. Its advice for anything that cannot be replaced, such as heirlooms or a stamp album, is to carry it with you when you travel. Read any policy carefully: what you need is cover for the cost of replacing lost or damaged items, and you should also check the excess you would pay on a claim, because the cheapest quote may not be the best value over time if your needs are not covered.

Whether your own policy carries the move. The Queensland Office of Fair Trading says that if you already have home and contents insurance, it may have cover for transit and accidental insurance, and that if it does not, you can easily get these added to your existing contents insurance policy. Its warning is to check before the day: you should also get a copy of the policy and read the terms and conditions before you move; check whether it covers both loss and damage; make sure it covers replacement value for your belongings; and find out if there is an excess. It also says your existing insurance may cover your contents when some are still in the old home and some are in the new one after you start moving, for a limited period.

Transit cover, the one built for a move. The NSW Government says transit cover insures your goods while they are being packed and moved by removalists, and that this includes any storage. The Queensland Office of Fair Trading adds that transit insurance covers damage to or loss of your items that the removalist may incur in transit as well as while packing and unpacking, and that you can take it out for a move within Australia or overseas. Consumer Protection WA’s checklist for a cover the company arranges: pin down which damage it covers and in what situations, and request a copy of the certificate of currency.

Three covers, read against the stretches a move passes through. This is the picture the sources draw: your own policy may already carry part of the journey, transit cover is the one made for the goods while the company holds them, and storage is its own product. Where no page read for the table carries a cover at a stage, the cell says so rather than guessing.

Goods in storage, and goods held back. The NSW Government says that if your goods need to be stored you can extend your transit insurance over the storage period, as a separate premium. The Queensland Office of Fair Trading says that for items going into storage for any length of time you should consider storage insurance against events like fires and water damage; accidental insurance, in its words, covers accidental damage to your items that you cause, for instance when you are moving cartons about the house to unpack. On a removal company holding goods against payment, Consumer Protection WA described cases where traders refused to return or deliver furniture until higher fees were paid; no source here says what a company’s right to keep goods for unpaid storage costs is. The Act’s side is settled: the guarantees reach a consumer’s goods in transport and storage, because the business exclusion does not apply where the consignee is not carrying on a business in relation to them (s 63).