Insurance When Moving House and Who Pays for Damage

When you move house, protection for your property and belongings falls into three separate layers. You need buildings insurance from the moment you exchange contracts if you are buying a home. Your home contents insurance covers your belongings once you move in. The removal company holds its own liability cover for loss or damage while your goods are in transit, but this is usually capped at a modest amount unless you declare a higher value and pay for extra cover.

The three kinds of cover involved in a move

Understanding who pays for damage during a move means looking at the property separately from your belongings. No single policy covers everything from the day you agree a sale to the day your boxes are unpacked.

The protection you need breaks down into three distinct areas:

• Buildings insurance protects the physical structure of the property you are buying.
• Your own home contents insurance protects the belongings you own.
• The liability cover provided by your chosen removal firm dictates how much they will pay out if they break or lose something while handling your move.

You need to check all three before moving day. A common mistake is assuming that a standard home insurance policy covers belongings in transit automatically. Another is expecting that a removal firm will replace a broken television with a brand new one without specific cover being agreed first.

Buildings insurance from exchange of contracts

If you are buying a property, the HomeOwners Alliance explains that you become legally responsible for it once contracts are exchanged. This means buildings insurance should be in place between exchange and completion. You can arrange for a new policy to start from exchange or take out temporary cover.

Speak to your conveyancer and mortgage lender to confirm the exact date this cover needs to begin. Having buildings insurance in place from exchange protects you if the property is damaged by a storm or a fire before completion day.

If you are buying a leasehold flat, the situation is slightly different. Buildings insurance for leasehold properties is often arranged by the freeholder. You should check this with your solicitor before taking out a policy of your own so that you do not pay for cover you do not need.

Does your home contents insurance cover the move?

Contents insurance is not strictly needed for your new property until you move in. You should still check how your current policy treats your belongings while they are travelling between homes.

Many insurers only cover your belongings in transit if you use a professional removals service. If you are packing a van yourself, your standard policy might not cover drops or breakages on the road. Some insurers also only cover fragile items if they were packed by a professional.

Your provider may limit payouts for items lost during a move. Some policies specifically exclude theft or accidental damage of expensive items such as jewellery during the move. Read your policy wording or ask your insurer exactly what is covered before you load a vehicle.

Telling your home insurer you are moving

Your current home insurance policy will not automatically cover you in your new home. You must tell your insurer about your move and ask about transferring the policy.

Expect the premium to change when you move. Insurance prices are based on factors such as the value of the property, the local flood risk and the crime rate in your new area. Your insurer will recalculate your premium for the new address, and it may go up or down.

If you decide to cancel a policy entirely, check the refund terms. After the initial cooling-off period, most insurers give a refund if you have not claimed during the policy term. You will usually pay an administration fee for cancelling.

What a removal firm's liability covers

All removal companies should have goods in transit insurance, but you must check their specific limits and exclusions. The firm's own terms set how much it will pay if your belongings are damaged, so ask for those too.

Under the Consumer Rights Act 2015, every contract to supply a service includes a term that the trader must perform the service with reasonable care and skill. A firm cannot simply write a contract that lets them break your things without consequence.

The law states that a term of a service contract is not binding if it would exclude the trader's liability for failing to use reasonable care and skill. A term also cannot restrict liability so far as to prevent you in an appropriate case from recovering the price paid for the service. You should always ask for the firm's liability terms in writing so you know exactly where you stand.

Liability limits and declaring higher values

Removal firms usually operate under standard terms that restrict their liability to a certain amount per box or item. You must ask about this before you book, as the standard limit is often much lower than the value of your goods.

Under the standard terms used by one BAR member, the remover is liable for up to £40 per item. Another firm's published terms define an item as the entire contents of a box, parcel, package or carton, or any other object moved, so if a box of expensive kitchenware is dropped, the payout under terms like these could be £40 for the whole box.

To get higher cover, you must tell the firm the value of what is inside your boxes. This means arranging extra cover with a declared value, which is charged in proportion to the value declared. Even with extra cover, the removal company's insurance may only cover objects up to a certain value.

Certain items are treated differently or excluded entirely:

• Anything especially expensive or sentimental should be moved in your own vehicle.
• Jewellery, watches, money and deeds are often excluded, so keep them with you.
• Items you pack yourself are subject to stricter limits, which are explained below.

Here is a brief comparison of how standard limited liability and declared value cover usually work.

This table shows the two main ways removal firms manage liability, and each firm's terms differ. Before you sign a contract, compare quotes and check the exact liability limit each firm offers. Our guide on how to choose a removals company explains what else to check.

Items you pack yourself

The way you pack has a major impact on what is covered if things go wrong. A removal firm's insurance will generally not cover items you have packed yourself.

If you use standard limited liability, the £40 per item limit applies to self-packed items. If you pay for extra cover, this usually only applies if the goods are professionally packed by the remover. Goods in wardrobes, drawers or packages that are not both packed and unpacked by the firm may only be covered for the firm's negligence.

So if you pack a box of plates and they break in transit, the firm may not have to pay under terms like these unless it was negligent, for example by dropping the box. For better protection of fragile goods, pay for professional packing and declare their value.

Belongings in storage

If there is a gap between moving out and moving in, you might need to keep your belongings in a storage facility. You must check how your insurance applies to goods while they are stored.

Ask your home insurer whether belongings in storage are covered by your contents policy. Some policies will cover items in a secure facility for a limited time, while others exclude this entirely. If your home insurance does not cover it, consider a specialist policy and check what the storage company's own insurance covers.

You can read more about how this works when arranging storage during a move. Ensure you have a written record of the storage insurance terms and the maximum value covered.

What to do if something is damaged or lost

When your belongings arrive at your new home, you should check them as they are unloaded. If you spot damage, note it on the delivery paperwork before the crew leaves and take clear photographs of the broken items.

You must report loss or damage in writing as soon as it is discovered. Firms enforce strict deadlines for this. One firm's published terms require details of the claim within 30 days of delivery, but others may give you less time. Always contact your mover by email or a recorded delivery letter so you have proof of the date you complained.

If you use a member of the British Association of Removers (BAR), they should respond to your complaint within three working days. They will try to resolve the dispute within 15 days and give a written response no later than eight weeks.

If a dispute with a BAR member remains unresolved after their final viewpoint letter, or twelve weeks have passed, you can take it to the Furniture and Home Improvement Ombudsman. This is a free, independent approved alternative dispute resolution body. You must refer the complaint no later than 12 months after the move or the end of the storage contract.

Be aware that this ombudsman service cannot assist with insurance matters, including claims for loss or damage to goods. It also cannot handle complaints over £10,000 in value or business to business contracts.

If your dispute is with an insurance provider rather than a mover, you must complain to the financial business first. The insurer has up to 8 weeks to consider the complaint. You then have 6 months from the date of its final response to bring the complaint to the Financial Ombudsman Service, and this service is free.

Common questions

What is house moving insurance?

House moving insurance usually refers to the goods in transit cover held by a removal firm, or a specific policy you buy to protect your belongings while they travel. It is not a single standard product. You get this protection by combining your own home contents insurance with the liability terms offered by your mover.

Do I need extra insurance for moving house?

You need extra cover if your removal firm's standard liability limit is lower than the value of your belongings. Standard terms often cap payouts at a modest sum per box. If you have expensive items, you should declare their value to the mover and pay a proportional fee for higher cover.

When should I arrange home insurance moving house?

If you are buying a property, you should arrange buildings insurance to start on the day you exchange contracts, as you are legally responsible for the building from that point. You should speak to your contents insurer before the move to update your address and check if your belongings are covered while travelling.

Does home insurance cover moving house damage?

It depends on your policy. Many contents insurers only cover damage during a move if you use a professional removals firm, and some only cover fragile items that a professional packed. You must read your policy wording to see if fragile items or expensive goods like jewellery are excluded from transit cover.

Questions to ask before you book

Getting the right cover means asking the right questions before you pay a deposit. Use this short checklist when speaking to removal firms and your insurance provider.

• Ask the conveyancer what date your buildings insurance needs to start.
• Ask your home insurer if they cover belongings in transit and if the premium will change.
• Ask the removal firm for their standard liability limit per item or box.
• Ask the firm how much it costs to arrange extra cover for a declared value.
• Ask what the firm excludes from their cover, such as self-packed boxes or jewellery.
• Ask how many days you have to report loss or damage after delivery.

Protecting your belongings does not have to be complicated if you check the terms early. Knowing exactly what your removal firm will pay for a broken box helps you decide whether to pack it yourself or leave it to the professionals. When you are ready to start gathering quotes, you can find a mover near you to compare their liability limits and extra cover options.