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.
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.
- 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).
- The question of distance in determining coverage is negligible. Most damages occur when goods are being loaded or unloaded not when in transit.
- 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.
- $12.50 / $1000 Coverage
- $500 Deductible
- Example $10,000 worth of coverage is $125
*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.