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Do you want your capsule home to stay safe from the factory to final use? Ooh yes! But understanding insurance for shipping and setup can feel confusing. Don’t worry! Each stage has its own risks and coverage options.
Moreover, in this guide, you will learn step by step how to protect your modules. Hence, you will know the perfect insurance plan to choose.
1) Before you order, set the basics
When you think about buying a capsule house from abroad. Then, the first thing to do is to set clear rules. Because this step protects you. Moreover, if something goes wrong during shipping. So always write down the terms before signing the contract.
→ Why You Need Incoterms?
First of all, you need to know about the terms. Moreover, these are international trade rules. So that specifies who will pay for each stage of shipping. And also, who will be responsible? For example, they specify whether you or the seller will pay for transport, customs, or insurance.
So if you write them down in the contract. Then there will be no confusion later.
→ What the Risk Transfer Point Means
Next, you need to choose the risk transfer point. Moreover, this is the exact point at which the risk of loss passes from the seller to you. For example, this risk may pass when your goods are loaded onto the ship. And also before they are handed over to the truck.
Therefore, if you spell this point out clearly. Then you will know when you will be responsible if the capsule is damaged.
→ CIF and CIP Made Simple
Now let’s discuss two common terms: CIF and CIP.
- First of all, CIF stands for “Cost, Insurance, and Freight”. Moreover, in this, the seller pays for the transport and insurance. But the insurance is usually weak and limited.
- Next, CIP stands for “Carriage and Insurance Paid To“. Moreover, the seller also takes out insurance. But this insurance is more robust. And also, usually with ICC A, which provides greater protection.
So both terms include insurance. But their strength and levels are different.
→ Why You Must Name the Insurance Level
At last, you should not leave it to the seller’s choice only. Moreover, sometimes they buy weak insurance. That does not cover the full value of your capsule house. So you need to tell the seller what level you want. For example, you can write ICC A in the contract.
So it gives the highest protection. Hence, this way you are sure that your belongings are protected from most risks during the entire trip.
2) Marine cargo insurance for the ocean trip
As you learn about contract basics. Moreover, now you will learn about insurance for the sea journey.
→ Why You Need Insurance for Cargo
First of all, understand that sea travel is long and dangerous. Moreover, your capsule house passes through trucks, ports, ships, and storage yards. Therefore, accidents can happen at every stage, such as bad weather, storms, fire, or theft.
So you need marine cargo insurance. Hence, it protects your goods from start to finish. Furthermore, this policy covers your goods: Factory Gate → Export Port → Ship → Import Port → Inland Truck → Your Site. However, if this is not the case. Then the insurance will only cover the sea portion. And also, damage during loading or unloading will not be covered.
→ Different Coverage Levels You Can Choose
Now you should know about the three levels of marine insurance.
- First of all, ICC A offers the most protection. Moreover, it covers almost every risk, Such as water damage, theft, mishandling, or accident.
- Next, ICC B is the middle level of coverage. Moreover, it covers some risks but not all. For example, it does not cover theft or minor damage.
- Then, ICC C is the weakest. Moreover, it only covers major accidents such as fire, explosion, or shipwreck.
Therefore, if your capsule house is valuable, then always choose ICC A. Moreover, it is a bit expensive. But protects you from major losses in case of damage.
→ Do Not Depend on the Ocean Carrier’s Limit
At last, you don’t rely solely on the shipping company’s liability. So, by law, most shipping companies only pay $500 per package. If your goods are lost or damaged. Moreover, this amount is far less than the actual cost of an entire capsule house.
So it can be thousands of dollars. So if you rely solely on the carrier, then you could lose everything. Hence, it’s essential to have proper marine cargo insurance.
3) How modules travel at sea
As you learn about shipping. Moreover, now you will learn how modules move at sea.
- Transport Methods: First of all, most capsule houses do not fit in a standard container. So they are mostly shipped in flat rack containers. Moreover, sometimes they are also shipped as break-bulk cargo.
- Check Unit Weight and Lifting Points: Next, you check the weight of the module before loading. And also, you check the lifting points carefully. So this can prevent damage when lifting by crane.
- Blocking and Cribbing: Then, the module must have strong support underneath. Moreover, blocking and cribbing are used for this. So this keeps the module upright and secure on the ship.
- Cross-Lashing for Safety: After that, cross-lashing is done with strong ropes or chains. Moreover, this holds the module tightly. So your module does not move even in high waves.
- Securement Plan or Third-Party Survey: At last, you always ask for a simple stowage and security plan. Moreover, you have a third-party survey done for extra safety. So this will ensure your module is handled properly at sea.
4) Port handoff and inland leg
As you learn bout how modules move at sea. Moreover, now you will learn about what happens after they reach the port. When your capsule house modules arrive at the port and are unloaded. So they are usually transported by truck to your site.
At this point, you should check your insurance coverage carefully. Therefore, your ocean policy should include a warehouse-to-warehouse clause. So it protects the cargo from the factory to the final site. However, if this is not included, you should add an inland rider for the truck journey.
Otherwise, the insurance will end at the port. And also, the inland journey will be left unprotected. So always make sure your policy covers the entire journey from the port to your location.
5) Crane lift and set on site
As you learn about what happens after they reach the port. Moreover, now you will learn that the critical step is lifting it with a crane. Therefore, the crane lift is the most critical step in placing the module. However, during this time, the capsule is suspended from the crane’s “hook.
So it increases the risk. Furthermore, the module must be covered by riggers’ or crane liability insurance. So this insurance protects in the event of damage during the lift. Moreover, you always ask the contractor for a lift plan before the lift begins.
The lift plan explains how the module will be safely lifted. And also, you ask for an insurance certificate that clearly states the extent of coverage. Hence, this limit should be at least equal to the full value of your module.
6) Install and hookups during site works
As you learn how your module is in place. Moreover, the next step is its installation and all necessary connections.
- Basic Works: First of all, in this section, the foundations are completed. Moreover, electricity, water, and wastewater connections are installed. So this stage is very important for the use of the house.
- Builders Risk Insurance: Next, during this time, you should take out Builders Risk Insurance. Moreover, this insurance covers both the module and the work. So its coverage lasts until all the work is completed.
- Installation Floater (if no Builders Risk): Then, if there is no central policy for the project. Then the contractor can use his own insurance. So this is usually done through the Installation Floater. Hence, this insurance covers materials and equipment until the work is completed and accepted.
7) After the handover, when guests start staying
As you learn how your module is fully installed and ready. Now the next step is to protect it once guests start staying.
- Property Insurance: First of all, it covers the building and the equipment inside it. Moreover, it protects if the capsule or the equipment inside it is damaged.
- General Liability Insurance: Next, it covers guests or visitors who are injured on your site. Moreover, it gives you legal and financial protection if someone makes a claim.
- Business Interruption Insurance: Then, it covers loss of income. Moreover, if a covered event forces you to shut down for a period of time. So this keeps you financially secure even in difficult times.
- Special Note for Rentals and Glamping: Lastly, if you use the capsule for rental or glamping. Then you choose a policy carefully. Moreover, most homeowner policies do not cover commercial or guest use. So choose a policy that also covers short-term rental activity.
Conclusion
In short, you should protect your capsule house at every stage. Moreover, you cover it during sea shipping. Then, secure it at the port and on-site. Next, ensure the lift, connections, and daily use. Furthermore, choose property, liability, and income protection.
So you will be protected from risks. Hence, we at Glamni offer you reliable solutions. And also contact us for more information.
