Transit insurance for household goods, explained properly

The gap between what is said and what is covered

“Insurance included” is one of the most commonly used and least meaningful phrases in this industry.

It usually means a token declared value — often a fraction of what your goods are worth — with exclusions broad enough to cover the most likely kinds of damage.

Four things determine whether a policy will actually help you. Ask about all four before you buy.

1. Declared value

The total value you declare for your goods, and the ceiling on any payout. Under-declaring to save premium is a false economy: most policies apply average, meaning if you declare half the true value, they pay half of any claim.

Work it out honestly. For a furnished 2 BHK, ₹5–8 lakh is a realistic range once you count appliances, electronics and furniture at replacement cost.

2. Premium

In India, typically 1.5% to 3% of declared value for household goods in transit. On ₹6 lakh declared that is ₹9,000 to ₹18,000. It is a real cost and worth deciding about deliberately rather than accepting as a line item.

3. Deductible

The portion you bear on any claim, usually 1% to 3% of declared value. On ₹6 lakh declared with a 3% deductible, the first ₹18,000 of any loss is yours.

This is why basic cover often pays nothing on a single broken television — the loss is below the deductible.

4. Exclusions

The list that decides most claims. Common exclusions worth checking:

• Items you packed yourself, unless surveyed and separately listed
• Scratches, dents and minor surface damage
• Mechanical or electrical failure with no external damage — the classic refrigerator dispute
• Cash, jewellery, documents and valuables — carry these yourself, always
• Pre-existing damage, which is why a photographic condition record protects you as much as it protects the mover
• Consequential loss, such as hotel costs during a delay

What a claim actually needs

Note that four of those five have to exist before anything goes wrong.

Insurance is only as good as the evidence trail underneath it — which is why the mover who takes condition photographs is worth more than the one who merely sells you a policy.

• The inventory the goods were listed on
• Condition photographs from before packing
• Photographs of the damage taken at delivery, before the crew leaves
• The delivery note with the damage recorded on it
• The invoice and the policy document

Should you buy it?

For a local move of a modest household, often no — the premium can approach the value of the most fragile items.

For an intercity move of a furnished home, usually yes, and comprehensive rather than basic, because the deductible on basic cover will absorb most realistic claims.

Decide on the numbers, not on the word “insured”.