New Jersey homeowners are likely to experience a variety of weather-related hazards. The state of New Jersey suffers snowstorms, floods, hurricanes, and even earthquakes. These kinds of natural disasters can influence what you pay for your home insurance premium.
In addition, some parts of the state suffer from high crime while other areas are almost crime-free. Although not required by the state, homeowner’s insurance makes sense if you wish to secure your home and possessions.
Insurers take weather, crime, and other potential hazards into account when they give you a home insurance rate quote. You can lower your rate by installing safety equipment like deadbolt locks or carbon monoxide detectors. You can also get a good deal on homeowner’s insurance if you own a newer house or if your employer has a group deal with an insurer.
The New Jersey Insurance Underwriting Association (NJIUA) will sell you basic coverage if you're unable to buy insurance from a private company because you’re considered high risk. Moreover, the National Flood Insurance Program (NFIP) sells flood insurance to people in flood-prone areas of the state.
Comparing New Jersey Home Insurance Rates
New Jersey home insurance prices vary greatly. Some parts of the state experience high crime. Other areas are prone to hurricanes or flooding. Insurance companies weigh the risks you and your home present. It's a good idea to compare rates and policies to make sure you get the coverage you need at an affordable price. What one company sees as an increased risk may not matter to another.
Many New Jersey insurers offer a variety of discounts. For example, you can receive a discount if you adjust your insurance to keep up with the inflation rate. You can also get a discount if your house is under 13 years old or if you renovated it recently. It's also possible to get a discount on New Jersey home insurance if you buy it through your employer, as some employers have group deals with certain insurers.
New Jersey's FAIR Plan
In some cases, you won't be able to purchase home insurance because your home is high risk due to risk of natural disasters, having a history of multiple claims, and so on. The state-founded New Jersey Insurance Underwriting Association sells basic home insurance, known as the New Jersey FAIR plan, to people who can't buy it from private insurers.
The FAIR Plan offers basic property coverage, but it doesn't include theft or personal liability coverage. However, you have the option to purchase theft coverage for an additional fee. However, the FAIR plan is what is known as last-resort insurance and New Jersey encourages homeowners to buy insurance from private companies whenever possible.
Frequently Asked Questions About New Jersey Home Insurance
1. What is a windstorm deductible?
If your home suffers damages from a windstorm, a windstorm deductible is the amount that you pay out of pocket for repairs before your insurance coverage kicks in. The cost is typically 1 to 5 percent of your home's value or the insured amount. Windstorm coverage is optional, but if you live in an area prone to high winds, it can be an invaluable investment.
2. What are the main coverages of a home insurance policy?
Property damage, additional living expenses, personal liability, and medical payments are the main things that a home insurance policy typically covers.
3. What is a peril?
A peril is any condition that causes some type of loss. For example, fires and theft cause property loss.
4. How long does it take for National Flood Insurance Program plans to go into effect after purchase?
It takes 30 days for most NFIP plans to go into effect, but there are some exceptions. Check out the NFIP website for more information.
5. Does homeowner’s insurance cover home businesses?
Most homeowner’s insurance policies don’t cover home businesses. However, they usually include a small allowance for damaged or stolen business items. For example, you may be able to get a stolen laptop replaced. If you have a lot of personal property related to your business, or there’s potential you may get sued by a customer, you should look into purchasing a separate business insurance policy.
6. What is private mortgage insurance (PMI)?
Private mortgage insurance protects lenders from loan default. It's usually required if you buy your home with a down payment under 20 percent of the purchase price. The cost is included in your loan payment and is a type of liability insurance.
How to Get Great Rates on New Jersey Home Insurance
Has it been a while since you shopped for homeowner’s insurance? Is so, loyalty doesn’t always pay because prices vary from insurer to insurer. Another company may offer you a much better deal. Looking for home or renter’s insurance quotes? insuranceQuotes.com can help you find the best homeowner’s or renter’s insurance policy at the best price. Every year, we match 15 million consumers to the nation’s biggest home insurance companies, including Allstate, State Farm and Farmers.
New Jersey Home Insurance Resources
NJ Department of Banking and Finance Division of Insurance
The source for A to Z information on New Jersey Insurance