Your home is likely a big investment for you and your family and should be protected accordingly. If you don’t have comprehensive home insurance, you might be leaving one of your biggest assets uncovered. That’s where Obrella comes in. We make sure that shopping for and buying a New Jersey home insurance policy is as painless as possible. With the help of experts, you can compare and contrast different policies to make a decision that you will feel confident about.
New Jersey Home Insurance Costs
In New Jersey, home insurance premiums average $981 annually, which is just under the national average of $1,034 per year. New Jersey comes in with the 21st highest average insurance premiums in the country.
- Median Home Value: 334,800
- Household Income: 65,243
- Percent of Income on Home Ownership: 40.70%
Homeowners in New Jersey value the peace of mind that comes with home insurance. In New Jersey, the median home value is $327,100, and the average household size is 2.7 people. With a median household income of $70,165, New Jersey residents spend just under 41% of their household income on home ownership. This places New Jersey as the third highest state in regard to how much residents spend on home ownership.
If you’re a new homeowner, or simply want to evaluate your current home insurance policy, an insurance expert can help you find the right policy for your home. Call 855-462-2213 to start comparing homeowners insurance rates in New Jersey.
Calculating Premiums for Home Insurance in New Jersey
Insurance companies determine your premium based on the amount of risk they take on by insuring your property. The higher the risk, the higher the premium.
Home insurance providers assess risk by looking at both the property itself and the surrounding area. Property-specific factors include home size, date of construction, and add-ons like swimming pools and guest homes. Regional factors like crime rates, home prices, and the likelihood of a severe weather event or natural disaster in your area can also impact your rates. If you live on a flood plain, for instance, you should expect to pay higher insurance premiums than the owner of a similar home on higher ground. Likewise, living in an area with high rates of vandalism and home burglary may also raise your costs.
Fortunately, your homeowners insurance premium isn’t completely out of your control. Installing home protection like security systems, motion-sensor lights, and surveillance cameras can help lower your rates. In some cases, simply having a high credit score can help make your premium more affordable.
New Jersey Homeowners Insurance
Many home insurance companies in New Jersey give you a range of coverage options to choose from; here are a few examples:
- HO-1: Limited Coverage
- An HO-1 policy provides protection against any of the first 10 classified disasters: fire or lighting, windstorms or hail, explosions, riots, damage caused by aircraft, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption. In most states, however, this type of policy is no longer available.
- HO-2: Basic Policy
- In the event of any of the 16 classified disasters, an HO-2 policy will give you basic protection.
- HO-3: Standard, most popular
- Aside from minor exclusions, this basic policy provides comprehensive coverage for your home.
- HO-8: Older Home
- This policy guards against declining home values by paying back homeowners for damage on an actual cash value basis. However, some more aged homes may not qualify for complete replacement cost policies.
Standard New Jersey Homeowners Insurance Coverage
Typically, home insurance will only cover damage caused by specific situations outlined in your policy. So, for instance, you wouldn’t receive a payment for flood damage if your policy doesn’t provide flood coverage. To help you better understand the different policies and coverages available, check out the following home insurance coverage definitions:
- Coverage A – Dwelling
- Coverage A deals with damage to the home itself, to any structures attached to the home, and to the home’s plumbing, heating, permanent air-conditioning system, or wiring.
- Coverage B – Other Structures
- Other Structures coverage applies to structures that are not attached to the home, such as tool sheds, guest homes, free-standing garages, and fences.
- Coverage C – Personal Property
- Personal Property coverage reimburses homeowners for the value of possessions, like electronics, furniture, and clothing items that are lost or damaged, even if the damage did not occur on the homeowner’s property—such as items in a storage unit.
- Coverage D – Loss of Use
- During an extensive home repair, Loss of Use coverage will pay for living expenses.
- Coverage E – Personal Liability
- If found legally liable for injuries that occurred on their property, a homeowner can use their Personal Liability coverage, which will cover the homeowner’s financial loss.
- Coverage F – Medical Payments to Others
- Covers medical costs for anyone hurt on a homeowner’s property or by the homeowner’s pet.
New Jersey Insurance Resources
- New Jersey Department of Banking and Insurance :Protects and educates consumers about insurance matters in the state. As a resident here, you can contact the department for assistance with insurance and to file complaints. As of June 2015, the department requires all homeowners receive a one-page summary of their home insurance policy. The summary must clearly explain the policy’s terms, coverages, and exclusions. To get more information about home insurance in New Jersey, you can contact the department at:
- Property Owners Association of New Jersey:A community of owners and operators of residential real estate. This association shares information and resources related to the housing industry. To join or learn more about the Property Owners Association of New Jersey
Don’t get lost or frustrated trying to navigate the home insurance market alone. With Obrella, you can find the right coverage for your New Jersey home in no time. All it takes is a simple phone call and you will have instant access to your own personal insurance agent who will work with you to evaluate your situation, review your options, and address any questions you may have. And you don’t have to wait for your coverage to kick in, as they even offer over-the-phone binding of your policy!
So quit worrying and start using Obrella for your home insurance needs. Professional insurance experts are just a phone call away, so pick up the phone and dial 855-462-2213 today.