Do You Really Need International Shipping Insurance? A Guide for Expat Families
When you’re moving your entire life across the world, whether by air freight, sea freight, courier, or checked baggage, the worst-case scenario is obviously losing items in transit. This is where international shipping insurance comes in.
But is insurance actually worth the price? What does it cover? And when should you consider upgrading to extra coverage?
If you’re an expat family moving overseas, here’s what you need to know.
What Is International Shipping Insurance?
International shipping insurance protects your belongings in case they’re lost, damaged, or stolen during transit from one country to another. It generally applies to freight shipments (e.g. container moves) and smaller-scale shipping through couriers or post.
There are two main types of coverage:
- Total loss: Covers only if the entire shipment is lost.
- All-risk insurance: Covers partial damage, theft, breakage, and other issues. This is what most families usually opt for.
What’s Typically Covered
Like all insurance, coverage varies from provider to provider. Typical items that are covered/not covered include:
| Covered | Not Covered |
| Theft or loss of the entire shipment | Items prohibited or restricted by law |
| Water damage from flooding or container leaks | Fragile items improperly packed by you |
| Mould or mildew (sometimes, with climate clauses)* | Normal wear and tear |
| Fire or accidents during transport* | Electronics with existing faults |
| Damage from rough handling during transit* | High-value items not declared correctly |
Important: If you pack your items yourself, many providers will only offer limited or total-loss-only coverage. For full protection, you typically need to choose professional packing by your moving company.
*Not all policies will include these items as standard and/or there may be restrictions – be sure to check your policy.
What Happens if Your Goods Are Lost at Sea?
Surprisingly (and scarily), if a ship sinks or your cargo is lost due to a storm or other unforeseen events, you’re not automatically covered. Unless you’ve purchased the right insurance, you won’t have coverage. That’s because standard shipping contracts usually include only minimal liability. You might receive a small payout based on weight, not the actual value of your goods.
To properly protect your shipment, you’ll need marine cargo insurance. This covers total loss, partial damage, and events like fire, theft, or natural disasters. If you don’t have this type of insurance, even in extreme situations, you could be left with nothing.
It’s also worth mentioning the concept of general average. If cargo is thrown overboard to save a ship, all cargo owners (even those whose goods weren’t affected) may be asked to contribute to the losses. Without insurance, this could mean big out-of-pocket costs to retrieve your own undamaged goods.
How Much Does International Shipping Insurance Cost?
The cost of international shipping insurance usually depends on the value of your shipment and the level of coverage you choose.
Here’s a rough estimate:
- Total Loss Only: ~0.5%–1% of declared shipment value
- All-Risk Insurance: ~2%–5% of declared shipment value
- High-Value Items (art, antiques, electronics): May incur additional premiums
Example Costs for Families
| Shipment Value | Total Loss Only | All-Risk Insurance |
| $10,000 | $50–$100 | $200–$500 |
| $25,000 | $125–$250 | $500–$1,000 |
Who Offers International Shipping Insurance?
Most international movers and freight companies offer in-house insurance. Some also outsource to third-party insurers. Here are some options:
- Crown Relocations – All-risk insurance available, tailored to family relocations
- SIRVA / Allied Pickfords – Offers detailed valuation and damage protection
- Seven Seas Worldwide – Optional insurance for box and suitcase shipping
- Parcel carriers (DHL, FedEx, UPS) – Limited declared value coverage, but you can purchase extra coverage
- Third-party insurers – e.g. BaggageHub or InsureMyMove.com
Make sure you always read the fine print and compare what’s included.
Is Insurance Worth It?
Wheter or not you pay for international shipping insurance depends on what you’re shipping. You also need to consider the value of your items, and how you’re shipping it.
When It’s Usually Worth It:
- You’re sending large shipments by sea or air freight
- You’re shipping electronics, bikes, furniture, or children’s keepsakes
- You’re moving to a region where handling is known to be rough, or infrastructure is poor
- You want peace of mind (especially if the move is already stressful)
When It Might Not Be:
- You’re backpacking or moving light, and carrying most items as checked baggage
- You’re sending inexpensive goods or items that are easily replaced
- You’re using courier shipping with limited value
Warnings for Expat Families
Based on our experience, here are a few key things to watch out for when/if you’re purchasing international shipping insurance.
1. Undervaluing Items Can Backfire
Insurers will only reimburse up to the value you declare. If you claim $5,000 but your TV and couch are actually worth $10,000, you obviously won’t be fully reimbursed for the true cost.
2. Not Everything Is Covered
- Certain countries (e.g., India, Argentina) have complex customs processes that can lead to extended delays or damage during inspection. Your insurance is unlikely to cover this.
- Mould and humidity damage isn’t always covered unless explicitly included. If you’re shipping to areas with high humidity (e.g. Asia), be sure to check for this.
3. Each Country Has Different Rules
Every country will have different rules for shipping and receiving items. For example, Middle East countries may inspect electronics more thoroughly. Latin America often adds import taxes to insured values, raising customs fees.
Don’t Forget These Alternatives
If full freight insurance feels like overkill, there are some other options that could save you. Consider some lighter options:
- Declare value on courier parcels (DHL, FedEx, UPS)
- Use travel insurance to cover personal baggage losses
- Check with home insurance – some providers offer coverage during transit
Final Thoughts on International Shipping Insurance
For most expat families, international shipping insurance can be worth it just for the peace of mind. This is especially true if you’re relocating with furniture, heirlooms, kids’ bikes, or anything irreplaceable.
It does add costs to a potentially already very expensive move, but in the case of loss or damage, it could save you thousands in the long run.
For low-value items, be sure to consider alternatives to international shipping which can save you money and reduce the time you need to wait to receive your items.
Pro tip: Ask your mover about third-party insurers if their coverage seems vague or overpriced. And always take photos of packed items before the truck or container is sealed.
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