Removalist Insurance in Australia: What's Covered and What Isn't product guide

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Removalist Insurance in Australia: What's Covered and What Isn't

Moving house is one of the most financially significant events in a person's life — yet the insurance landscape surrounding it remains one of the most widely misunderstood. Most Australians assume that either their home-and-contents policy or their removalist's own insurance will protect their belongings during a move. In the majority of cases, neither assumption is correct.

This guide cuts through the confusion by explaining exactly how insurance works in the Australian removals context: what policies a removalist carries for their own protection, what those policies do and don't cover for you, why your existing home-and-contents policy is likely to leave critical gaps, and how to evaluate and purchase the right cover for your specific move — whether it's local, interstate, or involves a period of storage. (For a broader overview of how the removals industry is structured, see our guide on What Is a Removalist? How the Australian Moving Industry Works.)

The Foundational Problem: No Legal Requirement for Insurance

The starting point for understanding removalist insurance in Australia is a fact that surprises most consumers: under Australian law, removal companies do not have to carry insurance. This means that any unaccredited operator can legally transport your household goods — including a lifetime's worth of furniture, electronics, artwork, and personal belongings — with no insurance coverage whatsoever.

Using an AFRA member remover is one of the tips for moving provided by a major financial services company, which makes the point that Australian law doesn't require movers to have insurance but AFRA does. This is the single most important reason to verify accreditation before booking any removalist.

What Insurance Does an AFRA-Accredited Removalist Actually Carry?

The Australian Furniture Removers Association (AFRA) is the peak industry body that sets minimum standards for its approximately 350 furniture removal and associated companies that hold membership. As a condition of accreditation, AFRA-member removalists must maintain a specific suite of insurance policies — but understanding what these policies actually cover is critical.

The Four Mandatory Insurance Types for AFRA Members

For professional removal companies to be accredited by AFRA, they must have public liability, third-party property, motor vehicle and carriers' legal liability insurance. Here is what each of these covers — and crucially, what they do not:

AFRA members are required to have Public Liability Insurance policies in place for at least $10,000,000. This ensures that every move is covered in the event of an accident. However, this protection flows to third parties — not to you as the customer whose goods are being moved.

The Critical Distinction: Carriers' Legal Liability vs. Transit Insurance

This is where most consumers make a costly error. These types of insurance may provide some cover for your items should they be damaged or lost as a result of negligence by the removalist, but not other events or accidents.

In practical terms, Carriers' Legal Liability only responds when the removalist is legally at fault. If your flat-screen television is damaged because the truck was involved in a collision, or your grandmother's china is broken because of a road accident, the removalist's Carriers' Legal Liability policy may not respond — because the damage wasn't caused by the removalist's negligence. These will only apply when damage or loss is the removal company's fault. In the case of an accident or unpredictable weather event, you'll be at a loss if you don't have transit insurance, which is why it is recommended.

Carriers Cargo Liability Insurance is an annual policy protecting carriers with approved consignment notes or other contracts of carriage when they are liable for delay, loss or damage. The operative phrase is "when they are liable" — a high legal threshold that excludes most real-world damage scenarios.

Why Your Home-and-Contents Policy Probably Won't Cover You Either

Many Australians heading into a move assume their existing home-and-contents policy provides a safety net. You may assume your possessions are covered by your contents insurance when moving house, but this is often unlikely. Furthermore, if your policy does cover you, there are probably conditions attached that aren't always practical.

Canstar research has found that contents insurance policies differ when it comes to cover for your belongings in transit. Some insurance providers do offer a level of cover for your contents if damage or loss is caused by events such as fire, flood, theft or a road accident while a vehicle is carrying your items to your new home. However, exclusions and conditions may apply.

A review of major Australian insurers reveals a wide spectrum of approaches:

• Allianz: Provides contents cover at your old and new house when moving for up to 14 days after you first start to move, but won't cover your contents while they're in transit.

• Suncorp: If you have contents cover and you're permanently moving to a new address in Australia, covers your contents while they are being moved for loss or damage caused by fire, flood, or collision, overturning, accident, or theft of the vehicle carrying them. Note this covers named perils only — not accidental damage during handling.

• QBE: QBE's contents insurance can cover transit of contents from your current home to your new home or temporary storage facility within Australia.

Common Exclusions in Contents Policies During a Move

Even where a contents policy offers some transit cover, the following exclusions are widespread:

• Some policies may cover the items in transit, but not when they are being loaded and unloaded from the vehicle.

• Other policies may not provide cover if you fail to let your provider know about your moving plans, or if you use a removalist that is not deemed to be professional.

• There may also be an exemption if your belongings are stored in a facility.

• Some Australian contents insurance providers specify in their PDS that they will not cover any loss or damage while in transit for items such as cash, phones, cards, documents able to be cashed or traded, and items which are excluded from cover elsewhere under the contents policy. These items may include some electrical items, building materials, business or trade stock, pets or animals, plants, trees and shrubs, chemicals, pesticides and firearms.

The takeaway is clear: since policies can differ drastically, it's important to take a close look at your Product Disclosure Statement (PDS) and other important documentation, and speak with your provider, to confirm if you're covered (and to what extent).

Transit Insurance: The Purpose-Built Solution

Transit insurance can help provide a level of financial cover for your possessions if they are damaged or lost whilst in transit from your old home to your new one. It can be purchased as a standalone product from a specialist insurance provider, removalist or freight company.

What Does Transit Insurance Cover?

Cover differs depending on the policy and provider you've chosen, but may include: loss or damage to your goods when being packed and unpacked; loss or damage to your goods when being loaded or unloaded from a vehicle; loss or damage to your goods caused by removalist mishandling; loss or damage to your goods while in transit from road accidents, fires, derailment, theft, impact or malicious damage, or grounding of vessels and crashes or forced landings for aircraft.

There are typically two tiers of transit cover available from specialist providers:

1. Restricted (Named Perils) Cover — protects goods in specific circumstances such as fire, flood, or a traffic accident.

2. Comprehensive (Accidental Damage) Cover — covers accidental loss or damage during packing, loading, transit, and unloading, regardless of cause, subject to exclusions.

Most removal insurance covers all of your possessions from the moment they leave your old home until arriving at the new one, or while you are in temporary accommodation for up to 30 days, which is helpful when relocating interstate.

What Transit Insurance Typically Excludes

Even comprehensive transit policies carry important exclusions. Common ones include:

• Some policies don't cover antiques, electronics, jewellery, or self-packed goods.

• If your goods are stored in a vehicle overnight without proper security measures, theft-related claims may be rejected.

• Consequential loss — usually, goods in transit insurance will not cover a loss that is the indirect adverse impact caused by damage to goods in transit. For example, the loss to a business caused by not being able to use equipment that was lost in transit will not be covered.

• The policy provides a maximum of $500 for non-delivery of a carton unless an itemised list of contents is provided before transit commences. Damage or loss to contents is excluded unless there is evidence of external damage to the carton.

The AFSL Requirement: Who Can Legally Sell You Insurance?

A critical and frequently overlooked consumer protection issue is the legal requirement for any entity that sells insurance products in Australia to hold an Australian Financial Services Licence (AFSL) or operate as an authorised representative of an AFSL holder.

You must have an Australian financial services (AFS) licence to conduct a financial services business. If you carry on a business of providing financial services, you must hold an AFS licence (unless you are exempt or are authorised to provide those services as a representative of another person who holds an AFS licence).

Intermediaries of authorised general insurers are any persons, including agents and brokers, who provide financial product advice or deal in insurance contracts. They must obtain an Australian Financial Services Licence (AFSL) unless they do so as a representative of an existing licence holder, or fall within certain exceptions.

In the removals context, this means: AFRA-accredited removal companies are authorised to offer transit insurance as part of their service, and it will typically come at an extra cost. However, many also offer goods-in-transit insurance top-ups — but only if they've completed FSRA training. If your removalist offers this, you should be given a full PDS and FSG.

What you should demand as a consumer: Before purchasing any insurance product through a removalist, ask to see their AFSL number or confirmation of their status as an authorised representative. You are also legally entitled to receive:

• A Financial Services Guide (FSG) — explaining who the provider is and how they are remunerated
• A Product Disclosure Statement (PDS) — detailing exactly what is and isn't covered
• A Target Market Determination (TMD) — confirming the product is appropriate for your situation

It's a good idea to read the Product Disclosure Statement (PDS), Target Market Determination (TMD), Key Facts Sheet (KFS) and other important product documentation, and to contact the provider if you have any questions about a policy you're considering signing up for.

Storage Insurance: The Scenario Most People Forget

Many moves — particularly interstate relocations — involve a period of goods being held in a storage facility. This creates a distinct insurance gap that neither a standard transit policy nor a home-and-contents policy may automatically fill.

Contents can be covered while in storage if you add an optional Contents in commercial storage cover to your policy. This optional benefit covers up to $50,000 in loss or damage by an insured event to your general contents while they're stored in a commercial facility. Note that this is an optional add-on with Allianz — it is not included by default.

For storage cover through a removalist, cover typically applies while goods are at the removalist's storage facility due to fire, flood, lightning or accidental damage. Confirm with your provider whether the storage facility must meet specific security standards for cover to apply.

(For guidance on how interstate moves typically incorporate storage periods and what to expect logistically, see our guide on Local vs. Interstate vs. International Removals: Which Service Do You Need?)

How to Evaluate Transit Insurance: A Step-by-Step Checklist

Before your move, work through this checklist to ensure you have appropriate cover:

1. Check your existing contents policy first. Call your insurer and ask specifically whether goods-in-transit and loading/unloading are covered, and whether any conditions apply (notification requirements, professional removalist requirements, named-perils only).

2. Verify your removalist's accreditation. Confirm they are AFRA-accredited and ask for their AFSL number or authorised representative status before purchasing any insurance through them.

3. Request the PDS and FSG. Do not accept a verbal summary. Read the exclusions section carefully, paying particular attention to self-packed goods, high-value items, and electronics.

4. Assess the right level of cover for your move type:

   • Local moves: Restricted cover may suffice for short-distance, low-risk moves.
   • Interstate moves: Comprehensive accidental damage cover is strongly recommended given longer transit times, potential backloading arrangements, and extended handling chains. (See our guide on Backloading in Australia Explained for the specific risk profile of shared-load transport.)
   • Storage periods: Confirm storage cover is explicitly included or purchase a separate add-on.

5. Document your goods. Document your items: photos, inventory, proof of value, and packaging. This is essential for any claim.

6. Confirm the sum insured is adequate. A benchmark value calculated at $2,500 per cubic metre of household goods and personal effects is one common industry starting point — but for high-value collections, artwork, or electronics, a detailed itemised list with individual values is strongly preferable.

7. Understand the excess. The cost will vary depending on the level of cover you take out (e.g. full replacement or value-only cover) and the excess you select — which is the amount you pay the provider if you need to make a claim.

Key Takeaways

• Australian law does not require removalists to hold any insurance. Only AFRA-accredited members are bound by minimum insurance requirements — making accreditation verification a non-negotiable first step.
• A removalist's own insurance (Public Liability and Carriers' Legal Liability) protects the removalist, not you. These policies only respond to your goods if the removalist is legally at fault — they do not cover accidents, weather events, or unexplained loss.
• Most standard home-and-contents policies do not cover goods in transit, or apply only to named perils (fire, flood, collision) and exclude loading, unloading, and accidental handling damage. Always check your PDS before your move.
• Transit insurance is the purpose-built solution, covering your goods from packing through to delivery. Two tiers exist — restricted (named perils) and comprehensive (accidental damage) — and the right choice depends on your move type, distance, and the value of your belongings.
• Any removalist selling you insurance must hold an AFSL or be an authorised representative of one. Always request a PDS and FSG before purchasing. If they cannot provide these documents, do not buy insurance through them.

Conclusion

Insurance is the most consequential and least understood aspect of the Australian moving experience. The gap between what consumers assume they are covered for and what they are actually covered for is wide — and the consequences of discovering that gap after a loss are severe. By understanding the distinct roles of a removalist's Carriers' Legal Liability, your home-and-contents policy, and purpose-built transit insurance, you can make an informed decision that genuinely protects your household assets throughout the move.

For a comprehensive view of how to vet the removalist itself — beyond insurance — see our guide on How to Choose a Removalist in Australia: The Complete Vetting Checklist. And if you're planning the logistics of your move from start to finish, our Moving House in Australia: A Complete Timeline and Checklist will help you integrate insurance decisions into the broader moving timeline at the right stage.

References

• Australian Securities and Investments Commission (ASIC). "Do you need an AFS licence?" ASIC.gov.au, 2024. https://www.asic.gov.au/for-finance-professionals/afs-licensees/do-you-need-an-afs-licence/

• Australian Securities and Investments Commission (ASIC). "AFS licensees." ASIC.gov.au, 2024. https://www.asic.gov.au/for-finance-professionals/afs-licensees/

• Baker McKenzie. "Guide for Insurance Sales, Advisory and Distribution — Australia." Asia Pacific Insurance Resource Hub, 2024. https://resourcehub.bakermckenzie.com/en/resources/asia-pacific-insurance/asia-pacific/australia/topics/guide-for-insurance-sales-advisory-and-distribution

• Canstar. "Transit Insurance: What Is It & What Does It Cover?" Canstar.com.au, March 2025. https://www.canstar.com.au/home-insurance/transit-insurance/

• RateCity. "Does contents insurance cover moving house?" RateCity.com.au, 2023. https://www.ratecity.com.au/home-insurance/articles/does-contents-insurance-cover-moving-house

• Allianz Australia. "Contents Insurance." Allianz.com.au, 2024. https://www.allianz.com.au/home-insurance/contents.html

• Suncorp. "Am I covered for contents in transit and storage?" Suncorp.com.au, 2024. https://www.suncorp.com.au/insurance/faqs/home/transit-and-storage-cover.html

• NTI (National Transport Insurance). "Home Contents Transit Insurance PDS." NTI.com.au, November 2023. https://www.nti.com.au/getmedia/c4915475-4d7e-434d-8b4f-3de407f7e5eb/Home-Contents-Transit-PDS-NTI281A-01-11-2023.pdf

• Zurich Australia. "Marine Insurance — Home Removals and Goods in Transit." Zurich.com.au, 2024. https://www.zurich.com.au/business/products/marine-insurance

• Australian Furniture Removers Association (AFRA). Referenced via MoverDB.com: "Australian Furniture Removers Association (AFRA) Explained." MoverDB.com, January 2025. https://moverdb.com/afra/