Paying the Right Price for Homeowners Insurance in NJ

If you own a home in New Jersey, then you need homeowners insurance in NJ – there is just no way of getting around that fact.

What Is Homeowners Insurance in NJ?

Homeowners insurance is an insurance policy that protects your property and your possessions against a range of potential threats, including damage and theft. Pretty much every mortgage company will require its borrowers to purchase home insurance coverage for the value of their property, which means it is often impossible to get a home loan without also getting a homeowners insurance policy.

A lot of people think that getting homeowners insurance in NJ is as simple as getting a quote, but it’s a bit more complicated than that. There are many different types of homeowner loans available and which one you want/need will change the price significantly. But, before we get into that, let’s take a closer look at homeowners insurance and what it covers.

What Does Homeowners Insurance in NJ Cover?

Different policies vary, and you can often chop and change them to suit your needs, but typically, homeowners insurance will cover the following:

Damage to Your Home

Most policies will cover a wide range of damage to the interior and/or exterior of your home, including damage from fire, vandalism, lightning, or other common natural disasters, although floods and earthquakes are often not included so do check before signing a policy. However, if your home is poorly maintained, your policy will typically not cover any damage that comes about as a result, so it is very important that you take care of your property.

Your Possessions

Homeowners insurance will also cover your personal belongings like consumer electronics, clothing and furniture – basically, the bulk of the contents of your home should be covered by your homeowners insurance, but again, it’s always best to clarify in advance what will and will not be covered should theft, damage or disaster occur.

It’s also worth noting that, often, homeowners insurance in NJ will cover your possessions for loss, theft, or damage wherever you may be, so even if you are not at home you’ll be able to claim anything taken from your domicile on your homeowners insurance. That’s a pretty good deal.

Personal Liability

Homeowners insurance will also cover you against lawsuits filed by people who were injured on your property, which is really important as injury suits can cost hundreds of thousands of dollars to settle.

Accommodation Costs During House Repairs

Most homeowners insurance policies will also cover the cost of a hotel or house rental should you need to vacate your property for a period if your home is damaged and needs extensive repairs. It may even cover the costs of your meals and any other incidental costs you incur.

What Are the Different Types of Homeowners Insurance in NJ?

In the US, there are basically three different types of homeowner coverage available, and quotes don’t often distinguish between the three easily, which means you often won’t know which type you’re buying.

The three primary kinds of homeowners insurance are:

Actual Cash Value

This covers the property cost plus the value of your property considering depreciation.

Replacement Cost

This covers the actual cash value of your property and belongings without considering depreciation, which means repairs and rebuilds could be made at the same level as the home’s original value.

Guaranteed

An extremely comprehensive level of coverage that includes an inflation buffer, which means you will get however much money you need to rebuild or repair your home even if it exceeds your policy limit (up to around 25 percent maximum in most cases)

Many insurance providers would suggest that anyone who owns a home pAy for a guaranteed homeowners insurance policy because that is the only policy that will allow them to fully rebuild their homes should the worst happen.

That’s because the housing market is always fluctuating, and what may be a decent level of coverage for your home now, may not give you enough leeway to fix any problems in a few years’ time. The guaranteed option is usually the best, but if you are unsure, speaking to an adviser is a sure-fire way to get some clarity on the situation.

How to Get the Right Homeowners Insurance Policy in NJ

Now that you know a bit about what homeowners insurance can offer, let’s talk a bit about why it’s more than just a simple quote, and how you can get the right homeowners insurance policy.

Although most homeowners insurance policies share a number of commonalities, there will always be variations in what each policy can offer. For example, some policies will only cover up to 50 percent of your home’s value, while others will pay out the equivalent of 70 percent, according to Investopedia, which means you can’t simply ask for a quote and expect all things to be equal.

Not only that, but some homeowners insurance policies will not be suitable for the very well-off who own homes worth $1 million or more. Those people may be better off talking to insurance companies in New Jersey in person to see what they offer. Often, they will access a special umbrella policy that will give them the level of coverage they need because of the high value of their home and contents.

Quotes Don’t Tell the Whole Story

Another reason why paying the right price for homeowners insurance in NJ isn’t as simple as just getting a quote is because you can’t always trust a quote. Some companies will lowball in order to draw you in. By the time you’ve added on all the extras you need, they’re no cheaper than other quotes you find. They may even be more expensive.

Not only that, but when you go to an insurance company directly, you can often haggle and get a much better deal than you would by relying strictly on quotes.

Contact Rosell Insurance Agency

Contact Rosell Insurance Agency if you’re looking for fair, affordable homeowners insurance in NJ, sold to you by a friendly face.