Move Bank Contents Cover: Check Before You Rent
Yes, you should check what a removalist’s move bank contents cover actually includes before you buy it, because the word “contents” is often narrower than you think. This article explains what move bank contents cover typically is, what it usually excludes, how it compares to separate transit insurance, and what to check before you pay for it.
What Is Move Bank Contents Cover?
Move bank contents cover is an optional insurance product offered by many removalist companies. It is designed to protect your household goods while they are being transported from one address to another. Unlike the removalist’s basic public liability insurance (which protects their own equipment and third-party property), contents cover protects your belongings against loss or damage during the move.
The term “move bank” comes from the way removalists pool many customers’ goods onto a single vehicle or container, similar to a bank pooling money. When your items are loaded with other people’s goods, the risk of damage from shifting, stacking, or accidental drops increases, so the cover is meant to address that specific risk.
What Does Move Bank Contents Cover Actually Include?
Most move bank contents policies are “all risks” cover, meaning they cover accidental physical loss or damage to your items during the move. However, the exact terms vary by provider and policy. Typically, the cover includes:
- Damage caused by collision, overturning, or derailment of the transport vehicle
- Fire, lightning, explosion, or earthquake during transit
- Theft, burglary, or attempted theft while goods are in transit or in temporary storage
- Damage from water, including rain, flood, or leaking containers
- Damage caused by rough handling, dropping, or crushing during loading and unloading
It is important to note that this cover usually applies only while the goods are in the custody of the removalist. Once the goods are delivered and signed for, the cover ends.
What Is Typically Excluded?
Move bank contents cover has significant exclusions that often surprise renters. Common exclusions include:
- Items that are not professionally packed by the removalist (e.g., if you pack your own boxes, they may not be covered for damage due to poor packing)
- Fragile items like glassware, ceramics, and electronics unless they are packed by the removalist in their own materials
- Items with pre-existing damage, wear and tear, or manufacturing defects
- Valuable items like jewellery, cash, documents, and collectibles unless they are specifically listed and valued in the policy
- Damage caused by insects, vermin, or mould
- Loss or damage due to inadequate packaging or labeling
- Consequential loss (e.g., if a damaged item causes other items to be unusable)
Many policies also have a limit on the maximum value per item, often around $500–$1,000, unless you declare higher values and pay extra. If you have expensive furniture or appliances, you may need to list them separately.
How to Check the Cover Before You Buy
Before you agree to purchase move bank contents cover from a removalist, take these steps:
- Ask for the full policy wording, not just a summary. The summary may not list all exclusions.
- Check the definition of “transit” – does it include loading, unloading, and any temporary storage? Some policies only cover the time the vehicle is moving.
- Verify the per-item limit and the total sum insured. If your items are worth more, you may need to declare them.
- Ask whether the cover is “new for old” or “market value”. Most policies pay the depreciated value, not the replacement cost.
- Check if the removalist is an agent for an insurance company. If so, you may have direct recourse with the insurer, which is often easier than dealing with the removalist.
- Compare the cost with a standalone transit insurance policy from a general insurer. Sometimes the removalist’s cover is more expensive for less coverage.
Move Bank Cover vs. Transit Insurance vs. Home Contents Insurance
There are three main types of insurance that can cover your goods during a move:
- Move bank contents cover – offered by the removalist, covers goods in their custody, usually limited to transit and temporary storage.
- Standalone transit insurance – bought from a general insurer, covers goods during a specified move, often with broader coverage and higher limits.
- Home contents insurance – may cover goods while in transit if you have the right extension, but many policies exclude or limit transit cover. Check your policy or ask your insurer.
In many cases, your existing home contents insurance may already cover your belongings during a move, but only if you have added “removal” or “transit” cover. If you have it, you may not need the removalist’s cover at all. However, home contents policies often have a lower limit for transit (e.g., 10% of the total sum insured) and may not cover damage caused by professional movers if they are negligent.
Common Problems and Misconceptions
One common misconception is that move bank contents cover is compulsory. It is not, but removalists often make it sound like a standard part of the service. You are free to decline it, but then you bear the risk of damage.
Another issue is that many renters assume the cover includes packing materials and labour. It does not. If the removalist packs your items, that is a separate charge, and the cover only applies if the packing is done by them.
Also, be aware that the removalist’s liability is limited by law in many jurisdictions. For example, in Australia, the Australian Consumer Law requires removalists to provide services with due care and skill, but they can limit their liability for damage to goods if they offer you a choice of insurance. This is why they push the cover – it protects them from having to compensate you beyond the limit.
Costs and How to Decide
The cost of move bank contents cover is usually a percentage of the declared value of your goods, often around 1–2% of the total value. For example, if you declare $10,000 worth of goods, the cover might cost $100–$200. This is relatively cheap compared to the cost of replacing damaged items.
However, before you buy, calculate the actual value of your belongings and compare it with the cost of the cover. If your goods are worth less than the excess (the amount you pay on a claim), the cover may not be worth it. Also, consider the risk: if you are moving locally and the removalist is experienced, the risk of damage is lower than an interstate move with multiple handling points.
Frequently Asked Questions
Is move bank contents cover the same as full insurance?
No. Move bank contents cover is a limited transit policy. It does not cover everything that a comprehensive home contents policy would, and it has many exclusions. Always read the policy document to see exactly what is covered.
Can I claim on my home contents insurance instead?
Possibly. Check your home contents policy for transit cover. If it includes goods in transit, you may be covered, but often with a sub-limit and only if the goods are being moved by a professional. If you are unsure, ask your insurer before the move.
What happens if my goods are damaged during the move but I didn’t buy the cover?
You can still make a claim against the removalist under consumer law, but their liability is often limited to a certain amount per kilogram or a fixed sum. This may be far less than the actual value of your goods. That is why the cover is offered.
Do I need to list every item separately?
No, but you should list high-value items. Most policies have a per-item limit (e.g., $1,000). If you have items worth more, you must declare them and pay extra to increase the limit. Otherwise, you will only receive the per-item limit if they are damaged.
Does the cover include storage if my goods are held before delivery?
It depends on the policy. Some include temporary storage for a limited number of days, while others exclude it. If you need storage, ask specifically whether it is covered and for how long.
Can I buy the cover after the move has started?
Usually no. The cover must be purchased before the goods are collected. Once the move is in progress, the insurance cannot be backdated. Make your decision before the removalist arrives.
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