If you already pay for home and contents insurance, is it really necessary to fork out for transit, removal or storage insurance as well?

Last year, Jonathan Smith carefully packed his worldly possessions into boxes and hired a well-known removalist company to relocate them to his parent's garage.

The move was going well until the removalists drove their truck straight into his parent's mailbox. In addition to damaging their property, the collision rattled the truck's contents, badly scratching the surface of an antique desk.

"Moving house is stressful enough without having to deal with broken furniture and damaged property. I didn't have transit insurance, so the removalist company didn't have to repair my antique table, which I inherited from my grandmother," says Smith.

"The drivers were covered by public liability insurance, but refused to make a claim because they didn't want to pay $500 excess to their insurance company."

After phoning the company's managing director, the removalists finally sent a cheque to cover the costs of the mailbox repairs, but the table remains irreparably damaged. For Smith, it was a learning experience.

"The next time I move my possessions, I'll invest in transit insurance — especially for furniture that has sentimental value. And I won't choose a removalist company with the cheapest hourly rate, because I think they're more likely to employ poorly-trained removalists," he says.

Jan Hanley, marketing manager at the Australian Furniture Removals Association, believes household removals insurance is a no-brainer.

"If your goods are insured in your home when they're at very little risk of being damaged, why wouldn't you insure them when you put them in a truck and shake them to bits?" asks Hanley.

Removalists are covered by public liability and freight insurance, but this won't cover damage to your goods while they're in transit.

A comprehensive removal insurance policy covers damage caused by unexpected events including collisions, fires, floods, jack-knifing, capsizing or a forced landing. If your goods are lost or delayed, the policy may also cover temporary accommodation for up to 30 days, which is worth considering when moving interstate or overseas.

Before you fork out for household removals insurance, check to see if your home and contents insurance policy covers possessions in transit — you may not need extra cover.

It's possible to purchase cover for extra-precious items only, or particular events such as collisions. But read the small print: transit insurance may not cover goods if you've packed them yourself, or cover goods for theft or non-delivery. You may need to mix and match different policies, as any precious items, like jewellery or collectables, often require separate cover.

"If you're purchasing insurance from a removalist company, ask to see a product disclosure statement and a financial guidance statement. If they don't have one, they shouldn't be selling insurance," says Hanley.

Shop around for the best prices and compare policies that pay replacement value (the full replacement cost of your goods) versus market value (which calculates depreciation as a result of wear and tear).

As a general guide, removal insurance costs between $17 and $30 per cubic metre but the rate will vary according to what you're moving and what distance you're traveling.

If in doubt, choose a company that belongs to the Australian Furniture Removals Association, which trains all its members to ensure they have the right training to sell financial products.

For more information, visit AFRA.com.au