Temporary Removal Clause
The temporary removal clause extends cover to insured property that is temporarily removed from the insured location, for example for repair, cleaning or exhibition purposes, usually subject to a time limit and a percentage or sub-limit of cover.
- Clause type
- Extension
- Origin/Market
- International programme
- Favours
- Insured
- Negotiability
- Negotiable
Purpose
Property insurance is in principle location-specific and covers insured property only at the insured location named in the contract. Where property is temporarily moved to another location – for example, machinery sent for repair, artworks moved to an exhibition, or furniture sent for cleaning – a gap in cover would arise without a specific provision. The temporary removal clause closes this gap by extending cover, for a limited period, to the temporary location.
Effect and limits
The extension is typically limited to a maximum duration (often 30 to 90 days) and to a percentage of the sum insured or a fixed sub-limit, and usually applies only within a defined geographical area (for example, the same country or region). Property that is permanently relocated to a new site is generally excluded, as is the transport itself, which is normally covered separately under a goods-in-transit or marine cargo policy.
Negotiation and practice
For businesses with frequent movement of machinery or exhibits, and for collectors of art and valuables, it is advisable to align the maximum duration and sub-limit with actual operational practice. For internationally active policyholders, it is also worth checking whether the geographical scope of the clause adequately covers cross-border movements, or whether a separate arrangement is required for this purpose.