Gulf News, 29 May 2010
02 June 2010
Gulf News: "Planning for Painless Relocation"
Q. I have been living in Dubai for the past five years and have a nice home with fairly expensive furnishings and appliances. However, I am planning to move to Singapore and need to know how best to estimate the moving costs involved?
Moving to a new country is an exciting prospect but the logistics of that move can be a daunting and costly business, just think about how stressful it can be simply moving into a new home in the same town and you are moving hundreds of miles away.To minimise this potential stress the best thing to do is to sit down and write a plan for the move, setting out all the items you wish to take with you to Singapore and all those that you can happily leave behind, the funds you have available for the move, and a timetable of events.
The main cost of the move will be shipping your furniture from Dubai, an expense that will depend on how much furniture you want to move and how many containers you require. As a rough estimate, one container costs around AED30,000, but you may get a better quote by shopping around. One container is usually sufficient for a houseful of furniture and once you have brought one then you may as well fill it – it makes no difference to the cost.
Packaging your valuables so they are protected from breakages is important and you may want to hire professionals to pack and move for you. Most professional companies that specialise in relocation provide packing as part of their service, however be warned that the packing and moving process can take up to two days to complete.
You will also want to ensure that all your valuables and goods are insured against unexpected loss or damage during transportation. An independent financial adviser can set up a ‘relocating insurance’ policy for you, which is specially designed to protect your personal possessions against any damage, loss or delay (even of a single item), and against damage due to an unexpected disaster.
Taking out a specific insurance policy for the move is necessary as home and contents insurance policies do not normally apply during overseas transportation. And while relocation companies say they will pay a percentage of the costs of any damage or loss, this agreement is often ineffective unless you have proper insurance cover.
If you are moving your possessions by sea then certain marine laws add complexity to the shipment – your financial advisor will also be able to explain this to you. You will also be required to maintain a full inventory of the goods to be moved. A useful tip is to keep a file of receipts and invoices – this will help you validate any insurance claim you might have – but remember keep the receipts file with you and do not pack it with the shipment!
The cost of relocation insurance varies but it will be around 1.75% percent of the shipment value. Insurance will be at full replacement value, which is important because in the event of a total loss the cost of replacement will be materially higher than the current value of your possessions.
You should also expect to be faced with other extra costs, which are not traditionally included in shipment company’s initial quotes, these include customs duties, taxes, storage, split delivery, handling of unusually heavy items such as a piano, safe or vault and any other third party charges, such as the cost of a carpenter or electrician.
Some common safety measures people who relocate adopt are ‘coverage’, ‘protection’, or any other security label –these are not insurance policies and offer only minimal refund assistance to any damage of goods.
If you have the time, try contacting a financial advisor in the UAE before you move. Securing qualified advice is important in searching for suitable insurance policies in a new market. Your independent financial advisor can then assist you in selecting relocating insurance cover that is suitable to your requirements. There may be a lot of terms and conditions in relocating insurance covers that list out areas or goods that cannot be covered under the policy. An independent advisor can list these out for you and help you select a policy that covers what you feel needs insurance.
Lastly, relocating always involves expenses, planned or unplanned, and the last problem you need is to shell out more money for your furniture or valuables if they are damaged during your move or if there is an extended delay. Relocating insurance policies can also include re-imbursement or financial assistance incase there is a substantial delay in the delivery of your possessions.
Rumi M Sanjana, Director General Insurance, Nexus Insurance Brokers LLC, www.nexusadvice.com