New Jersey Homeowners Insurance

New Jersey Homeowners InsuranceHomeowners insurance is the best thing to get to protect your largest investment.   New Jersey homeowners insurance is available across the state and nation.  Mortgage lenders require insurance and knowing the ins and outs of your policy will help you save thousands of dollars.

Obtaining an insurance policy on your home can be overwhelming with all the things it can cover and all the things it won’t.  Limits, deductibles, exclusions and more can make it confusing.  In June of 2015 the State of New Jersey Department of Banking and Insurance began requiring insurance companies to give a one-page summary of the policy that clearly states the exact terms, conditions, coverage and exclusions in an enforcement act by a law signed into action in 2013.  

New Jersey homeowners insurance policies have to clearly state the coverage amount for the main dwelling, other structures, personal property, loss of use, personal liability and medical payments to others.  The agents are also responsible to tell you the features of the policy including what is excluded from coverage, deductibles and optional insurance coverage for things like hurricane, water back up, earthquake and more.  

When obtaining New Jersey homeowners insurance from insurance companies like, you should look for a clear definition of what is covered and what is not. Policies will vary from company to company therefore it is important to understand exactly what each company offers.  

One of the biggest mistakes people make when obtaining homeowners insurance in New Jersey is to get coverage for the mortgage amount not the replacement value.  As lenders require insurance they are concerned with protecting their investment not what is the actual coverage.  This leaves many people underinsured.  If you consider the down payment and that most lenders offer 80% loan coverage that means insuring your home for the loan amount leaves you short in coverage.  You want to consider the cost of replacement to determine the amount of coverage you should get for your home.

Insurance offers many different variations and limitations.  It is important to understand what your needs really are including replacement value of contents including jewelry, art and other valuable items.  An insurance endorsement is designed to give you replacement coverage for those items versus actual cash value.  This means that you will be reimbursed the actual cost for replacing the item versus what the value was at the time the items was lost or damaged.  

New Jersey homeowners insurance covers many things and it is important to make sure you are covered in case of a disaster or worse case scenario.

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