Most people assume that when a removalist loads their furniture onto a truck, their belongings are covered if something goes wrong. It's a reasonable assumption. It's also, in many cases, wrong.

The reality of removalist insurance in Australia is more complicated, and more important to understand, than most people realise before they book a move. This isn't about scaring you. It's about making sure you know what questions to ask and what answers to look for, so you're not discovering gaps in coverage when it's already too late.

Here's what you need to know.

The Fact That Surprises Most People

There is no legal requirement in Australia for a removalist company to carry insurance on your goods.

Read that again. Anyone with a truck and an ABN can operate as a removalist in this country. They are not legally obligated to hold transit insurance, goods-in-transit cover, or any policy that protects your belongings if they're damaged or lost during the move. The vehicles need to be registered, and the business needs to be legitimate, but the actual protection of your possessions is, by law, entirely optional.

This doesn't mean most removalists are uninsured. Reputable companies carry appropriate cover as a matter of professional practice, and many offer insurance options to their customers. But the absence of a legal requirement means the industry is uneven, and knowing which type of company you're dealing with matters enormously.

What AFRA Membership Actually Means for Insurance

The Australian Furniture Removers Association (AFRA) is the industry's primary accreditation body. It's not a government agency, but it's the closest thing the removals industry has to a formal standard, and its insurance requirements are worth understanding.

According to AFRA's membership requirements, member companies must carry, as a minimum:

• Public liability insurance, covers injury to third parties or damage to property that occurs in the course of the move (for example, if a removalist damages your neighbour's fence, or someone is injured during the job)
• Motor vehicle and third-party property insurance, covers the truck and any damage it causes to other vehicles or property while in transit
• Fire, flood, collision and overturning insurance, covers the removalist's own assets if the truck is involved in a serious incident

Here is the critical point: none of these policies automatically cover your goods against accidental damage during the move. They protect the removalist's business and assets, and third parties who may be affected. But if your dining table is scratched during loading, or your television is broken when a box shifts in transit, these standard policies may not cover it.

That protection requires a separate type of insurance entirely.

Goods-in-Transit Insurance: What It Is and Who Provides It

Goods-in-transit insurance (sometimes called transit insurance or removalist insurance) is the policy that specifically covers your belongings while they're being packed, loaded, transported, and unloaded. It's the one that actually matters to you as the customer.

The important distinction here is who can offer it. Only AFRA member companies are authorised to arrange transit insurance directly on behalf of their customers. A removalist who is not an AFRA member cannot legally offer you insurance on your goods, which is another reason AFRA membership is a useful indicator when you're comparing companies.

When a respected Brisbane removalist offers transit insurance, it typically covers events like:

• Vehicle collision, rollover, or accident during transit
• Fire or flood during transport or temporary storage
• Theft of the vehicle or its contents
• Accidental damage during loading and unloading

However, what's covered varies between policies and providers. Some policies exclude certain items, jewellery, cash, documents, artworks above a certain value, or items packed by the owner rather than the removalist. Some have excess amounts that apply per claim. Some cover replacement value; others cover depreciated value, which can be significantly less for older items.

The only way to know exactly what a policy covers is to read the Product Disclosure Statement (PDS) before you agree to it. A reputable company will provide this without being asked.

What Your Home and Contents Policy Might (or Might Not) Cover

Before purchasing transit insurance through your removalist, it's worth checking your existing home and contents policy.

Some Australian home and contents insurers include a degree of cover for goods in transit as a standard feature of their policies, particularly if you're moving within Australia. If your policy includes this, you may not need to pay for duplicate cover through your removalist.

However, many contents policies do not cover goods in transit at all, or apply significant limitations, covering only certain events, or only for a short transit window. And importantly, if your home and contents policy is linked to your current address, it may lapse or change at settlement, which could leave a gap precisely when you need it.

Call your insurer before your move, tell them you're relocating, and ask specifically: "Are my goods covered during transport and on moving day?" Get the answer in writing if you can.

The Questions to Ask Before You Book

Armed with this understanding, here are the specific questions worth asking any removalist before you sign a contract or hand over a deposit.

• "Are you an AFRA member?" This is the single most useful filter. AFRA membership isn't a guarantee of perfection, but it tells you the company has been audited, meets minimum equipment and training standards, and is authorised to offer transit insurance. You can verify membership directly on the AFRA website.
• "What public liability insurance do you carry, and what is the limit?" AFRA members are required to carry public liability insurance of up to $10 million. This covers damage to property and injury to people during the move, important if you're moving into a building with shared spaces, lifts, or stairwells.
• "Do you offer goods-in-transit insurance, and what does it cover?" If they say yes, ask to see the Product Disclosure Statement before moving day. Look specifically for what's excluded, whether there's an excess, and whether the policy covers replacement value or depreciated value.
• "What happens if something is damaged during the move?" A reputable company will have a clear, honest answer. They'll explain their claims process, what documentation they require, and how disputes are handled. Vagueness here is a warning sign.
• "Does your insurance cover items I've packed myself?" Many transit policies exclude damage to goods that were packed by the owner rather than the removalist. If you're doing your own packing, which many people do to save money, understand whether that affects your coverage.

The Difference Between Cheap and Expensive Quotes

If you've been comparing removalist quotes and noticed a significant price gap between companies, insurance is often part of the explanation.

A company offering a very low quote may be operating without full insurance cover, with fewer staff than the job requires, or with older vehicles and equipment. When something goes wrong, and occasionally, things do go wrong, the path to compensation can be difficult or impossible if the company isn't properly insured or isn't a member of an industry body with a dispute resolution process.

A higher quote from a reputable, AFRA-accredited company reflects not just the cost of the move itself, but the cost of proper insurance, trained staff, well-maintained vehicles, and the accountability that comes with belonging to an industry body. These things have a price, and it's usually worth paying.

What to Do If Something Is Damaged

If an item is damaged during your move, the process matters. Document everything immediately, take photographs of the damage before anything is moved or cleaned up, and note the condition of items before loading where possible (photos the morning of the move are useful for exactly this reason).

Report the damage to the removalist company on the day, in writing if you can, a text or email creates a record. Follow up with a formal claim through whatever process the company uses, and if you're claiming through transit insurance, contact the insurer directly as well.

If the company is an AFRA member and a dispute can't be resolved, AFRA offers a formal dispute resolution process, one of the practical advantages of choosing an accredited company from the start.

The Short Version

Australian law does not require removalists to insure your goods. AFRA-accredited companies carry mandatory public liability insurance and are authorised to offer transit insurance, but these are two different things, and the standard cover doesn't automatically protect your belongings during the move. Before you book, check whether your removalist is AFRA accredited, ask specifically about goods-in-transit cover, read the Product Disclosure Statement, and check what your own home and contents policy does or doesn't cover during transit.

It takes twenty minutes of preparation. It can save you a significant amount of stress, and money, if something doesn't go to plan.