Marine Insurance

Kef provides you with the best marine insurance that you can find.  

Marine insurance companies are known to be very difficult to deal with in the event of a claim, but this is not so with Kef.

Kef has decades of experience with the same US-based marine insurance company, and we offer fair, responsible coverage for your shipment.

Using our simple guidelines, you will define your own insurance coverage for your shipment.  

One of many factors which will give you peace of mind throughout your move with Kef.

 

 

Marine insurance is always for replacement value in similar condition at destination.  See below for a list of suggested multiples to get from value at origin to value in Israel.

Lists with values required before pickup, items

  1.    Above $1500 per item/set.  Very high value goods may have special conditions, deductibles, and premiums.
  2.   Not professionally packed. These can be insured only for loss and theft,  not for more than $300/box, and only if a valued list of goods in each box is presented before pickup.
  3.    Unless you insure LumpSum (minimum $8/lb),  create a comprehensive valued inventory,  grouping items of similar value.

 

The 2 ways to get all-risk* shipping insurance.   

  1. The easy way is lump-sum, minimum $8 per lb.

Example:     1000 cubic feet x 7 lbs./cubic foot x $8.00/lb = $56,000 insured value

  1.  Detailed listing.      A comprehensive list of of replacement values of all the goods in the shipment  in a Valued Inventory Form.  Replacement value is the cost of replacing a similar item in similar condition at destination.

 

For both “A” and “B”, you must prepare lists of:

  1.   High value goods–individual items or sets insured for more than $1500.   For special value items it is highly advisable  to supply before packing (and necessary if there is a claim)– invoice of purchase, prior insurance policy, expert assessment,replacement quote–internet is ok.  And photographs.    Very high value items could be subject to special premiums and deductibles.
  2. Goods which are not professionally packed.    These are listed by the shipper as PBO and can be covered for loss and theft only, if you submit a valued inventory of the contents of each box before pickup.  Coverage is for not more than $300 per box  or packing list line entry. Be sure there are no breakables in them.
  3.   Goods which you would like to insure as sets.

 

Timing

Insurance related decisions, lists, and documents are due 2 weeks before pickup.

 

Default  

If by pickup time, you have not given us or told us that you would give us a valued inventory list, we will insure you for Lump Sum at an optimal deductible–$500 for more than $30,000, $150 for less.     If you specifically decline all-risk before pickup, we will insure you for Total loss of the shipment, with no coverage for partial damage or loss, whether or not you have insured elsewhere.

 

Minimum

Minimum premium for all/any marine insurance is $0.36/cubic foot, or $8/lb, the greater.   You can either use that for Total Loss or, to get better value , supply a valued list of goods, totalling that amount.  It is worthwhile making  the effort to create a valued inventory of the whole shipment, before pickup rather than insuring total loss.   If you can’t manage, then it is better to insure for the lump sum value at the highest possible deductible.

Example:     1000 cubic feet x $0.36/cubic foot= $360 minimum premium

$360 gives $30,000 of total loss coverage

$360 gives $14,400 of all risk coverage at $150 deductible, but you must submit a list of goods with values

 

Coverage:  From packing to delivery, sold as a percentage of insured value (i.e.  2.0% = $20 per $1000 of insurance).

Condition of goods: Take pictures; make sure packer records condition on packing list.

Previously packed goods: If goods were recently packed by professionals, present invoice of packing to Kef before pickup. Otherwise UNSEAL boxes; make sure packers inspect and repack as necessary. There are costs to unpack in order to repack.

Lists:  You are insured only when the final list is received, approved, and paid for, and you are responsible for the accuracy and completeness of your lists.

Crating: The following must be crated to be insured:

  1. Goods which packers recommend crating
  2. porous  items (i.e. marble, glass, granite), unless packers are confident of alternative packing
  3.  pianos insured for more than $5,000
  4.  instruments not in hard cases.

 

Marine Insurance in Storage

Extensions: You are covered for 30 days at the shipper’s warehouse at origin and 30 days at an approved warehouse at destination. To extend either, you must give notice and pay for the extension before the expiry date.

Storage which is not in the port: If goods go to self-storage with key and access, your marine insurance ends, and it is worthwhile purchasing insurance from the warehouse. If goods remain in the port, go to commercial storage or self-storage with no key or access, marine insurance can be extended, and there is no need to buy insurance from the warehouse.   If you have a key and/or access to your goods, your marine insurance ends

Access to goods not stored in the port:   When your goods are in storage that is not within the port, you are not permitted to communicate directly with the warehouse agent or to have access to your goods, except with specific prior arrangement with Kef and the agent as to the time, date, and purpose of the access.  The agent must guarantee a)  that you will not have access to your goods, unless accompanied by the agent and b) that  any/all additions, inspections, or removals will be recorded and signed for by you and the agent.   Otherwise, your marine insurance coverage ends and cannot be renewed without a full inspection and re-inventory of all the goods in the shipment.

Location of warehouses, whether within or without the port:   Stored goods, as goods in transit, may well be moved between warehouses without notice.

 

Making Claims

Signing the release: If the container seal is broken or any box or crate is open when you first see it, or if there is any other sign of damage, record it on the delivery receipt. If the trucker does not have a receipt, create one and keep a copy. Be as detailed as possible.  Check the pieces arriving against the packing list or cube sheet and record the results of your check on the delivery receipt.    You MUST make a count of items as they come off the truck–noting shortages.  Otherwise it will not be possible to claim missing items;   use the bingo sheet, whenever possible.

Claims process:  If goods are damaged or missing, photograph the evidence – packing materials and broken items/glass. In the case of claims above $10,000, save evidence until the surveyor comes.   You have 45 days to register a claim and another 90 days to submit all supporting documents. To begin the claims process, notify Kef and the insurance provider online. There is no survey for damages under $10,000;  repair/replacement estimates are sufficient.  If likely damage exceeds $10,000, the insurance company will hire a surveyor.

Goods are uninsured: If they are not on your list (unless you insure lump sum), or you do not pay for insurance.

Arranging your own delivery:   Your marine insurance will end when your truckers take possession of the goods, unless the truck and movers are insured for at least as much as your marine insurance policy.   Your truckers must issue and you sign a delivery receipt listing the number of packages received and any damages or missing goods.    You MUST make a count of items as they come off the truck–noting shortages.  Otherwise it will not be possible to claim missing items;   use the bingo sheet, whenever possible.

Underinsuring: If you insure for values below replacement value at destination, claims will be proportionally underpaid, either based on the percentage of under-valuing of the total shipment or on the under-valuing of the items for which claims were filed–the greater of the two.
$11.     Personal papers: Can be valued by the box. Insurance will cover the entire box if it gets lost or the boat sinks.

$12.     Boxes you pack yourself–listed by the shipper as PBO (packed by owner) are covered for loss and theft only, only up to $300/box, and only if you submit a valued list of contents before pickup.   If your entire shipment is self packed and you do not supply such lists before pickup, you will be required to insure for total (catastrophic) loss only.

$13.     Insuring fewer than all similar items: Insure all or list specifics, to avoid the temptation to identify the damaged one as the insured one.

$14.     Items in a group: Unless you note otherwise, these are understood to be of equal value.  A dining room set of 7 pieces insured for $700 means each piece is worth $100, unless you tell us, for example,  that the table is worth $400 and each of 6 chairs $50.

Recommended multiples from USA to Israel replacement value.

ritual objects 1
books—Kodesh 1
small appliances + microwave 1.5
European appliances 1.5
computers and peripherals 1.5
art objects, collections, collectibles 1.5
sports equipment: bikes, etc 2
musical instruments 2
books and paper items 2
furniture: indoor, outdoor, office 2.25
kitchen items: dishes, flatware, china, miscellaneous 2.25
linens 2.25
carpets and rugs 2.25
clothes 2.25
major US appliances 2.75

Final authority with marine insurance rests with the policy and the endorsement.

*All risk insurance is only available for shipments where professionals pack, load, and make a packing list.

Read More