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Movers Liability
All licensed movers within the state of
New Jersey are required by law to
provide basic
coverage at no additional cost to the
consumer. The mover’s liability is $.60
per pound
per article, or the cost of repairs,
whichever is less.
This means that your mover will
settle any claim for damage or loss
based upon weight of the item, not its
value.
Another
example would be a dining room table,
weighting 110 pounds, with a large gash
or dent.
The mover’s liability for this item
would be $66.00 or the cost of repairs
whichever less is.
Should the item be settled for the
maximum amount, the mover has the right
to retain item
for salvage.
Replacement Value Insurance
This is the fullest coverage available.
If an item is damaged, repair will be
authorized up to
the replacement cost
of that item. If the item requires
repairs greater than the cost to replace
it, or if the item is totally destroyed,
the item will be replaced with a like
item. The mover has
the right to retain the replaced item.
Helpful hints for the Consumer
1. You
need insure to full value when
purchasing replacement value insurance.
If your goods
are worth
$40,000.00, then insure for that
amount. If you don’t, then the mover’s
insurance
company
will employ a co-insurance company
clause, meaning, that if you insure your
goods
for
$4,000.00, when the total value is
$40,000.00, you have insured for only
one tenth of the
value.
For example, your couch, valued at
$2,000.00, will only be covered for 10%
of its value
($200.00).
2. The
question of distance in determining
coverage is negligible. Most damages
occur when
goods are
being loaded or unloaded not when in
transit.
3. The
cost of replacement insurance (the
fullest type) can increase the cost of
your move by
twenty
percent. Don’t compare the moving cost
with the insurance cost. You are moving
all of
your
worldly possessions. Be sure to
evaluate this expense honestly.
Full Replacement Value Insurance Rates
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$12.50 / $1000 Coverage |
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$500 Deductible
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Example: $10,000 worth of coverage is
$125
click here for
information on additional insurance
coverage
*Your present homeowners or tenant
rental insurance policy may extend
coverage to
your
goods
while in transit. Check with your
insurance agent
for more information.
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