Insurance for Moving Overseas
The Co‐Insurance Clause states:
“All Items Shipped Must be Insured at Full Value. If the amount of insurance purchased is not equal to thevalue of the entire shipment at time of insuring, the Insurance Company will not pay for the actual full value of any item lost or damaged. The insured shall to the extent of such deficit bear their proportion of the loss.”
This means, that if a shipper does not insure his entire shipment for full value, should he have a claim, a penalty will be applied.
For example, if a shipment’s full total value is US$5,000.00, but the shipper only insures it for US$2,500.00, he is only insuring 50% of his shipment’s true value. In the event of a claim, the most he would receive is 50% of any claim settlement. If his US$500 table is a total loss, the most he would receive is US$250.