New Jersey Homeowners Insurance
Homeowners Insurance in New Jersey: Complete Consumer Guide
Do you own a home in New Jersey? Are you considering moving here? We have some fun facts for. For instance, many people wrongly assume that New York is the most densely populated state, but New Jersey wins with an average of over 1,000 people per square mile. Also, 90% of the population lives in an urban area. Unfortunately, New Jersey also ranks first for car theft, with more cars stolen in Newark than any other city. It also has the most diners and shopping malls in the world. Famously, Bruce Springsteen, Queen Latifa, Aaron Burr, Frank Sinatra and Jon Bon Jovi are from New Jersey. Of the 50 resort cities and towns in New Jersey, the most famous ones are Ashbury Park, Wildwood, Atlantic City, Seaside Heights and Cape May. A leading industrial state, it’s the largest chemical production state in the country. The Miss America pageant is always held in Atlantic City, where casino gambling became legal in 1977.
Types of Homeowners Insurance policies in New Jersey
There are several types of homeowners insurance policies, but the HO-3 form is the most commonly sold. Condo owners have a specific form. Below, we do not mention mobile homes and rental units.
HO-1 The “basic form” covers the 10 most common perils. Some insurers do not offer HO-1 forms.
HO-2 This “broad form” provides limited coverage, but more than the HO-1 basic form.
HO-3 This is the most commonly purchased type of home insurance. It offers coverage for named perils and personal property. Your insurer will pay to repair or replace belongings caused by covered perils, 16 of which are covered by this type of policy, including fire and smoke; lightning strikes; windstorm and hail; explosions; vandalism and malicious mischief; damage from an aircraft, car or vehicle; theft; falling objects; the weight of ice, snow or sleet; and water damage.
HO-6 This is for condominium units. This is usually “walls-in” coverage and may protect the unit’s walls, floors and ceilings against 16 perils. It also includes coverage for the condo owner’s belongings.
HO-8 This form is for older homes and covers 10 perils. It is paid on an actual cash value basis, so it’s the cost of the items minus depreciation.
What factors affect rates on homeowners insurance in New Jersey?
There are many factors that affect rates on homeowners insurance. These include location, construction type and materials, the condition of the home, your credit score and claims history and other factors like qualifying discounts, whether or not you have a swimming pool and more.
Top 5 disasters in the State of New Jersey
New Jersey federally declared Fire as the most disaster with 105 counts since 1953, followed by Severe Storms, Flood, Biological, and Tornado disasters. Fire or Lightning disaster is one of 16 perils covered in a standard HO-3 homeowners policy. Here are the top 5 federally declared disasters in the state of New Jersey:
|Rank||Declaration Title||Disaster Number|
Source: Federal Emergency Management Agency (FEMA)
How much is homeowners insurance in New Jersey?
On average, New Jersey homeowners pay $1,052 a year on home insurance.
Source: The average cost of homeowners insurance by state, Business Insider.
Crime Rate: Is New Jersey a safe state?
|2019 Crime in New Jersey||Crime Number||Crime Rate*|
*Rate per 100,000 inhabitants
Safest Cities in New Jersey by Property Crime*
- Sparta Township, NJ has a population of 18,532 with a Property Crime rate of 1.7 per 1k. The city average home value is approximately $377,000.
- River Vale Township, NJ has a population of 10,063 with a Property Crime rate of 2 per 1k. The average home value there is about $617,924.
- Chatham Township, NJ came in third as the safest city in the state of New Jersey and has a population of 10,219 with a Property Crime rate of 2.3 per 1k. Its home value averaged at about $836,318.
- Clinton Township, NJ has a population of 12,801 with a Property Crime rate of 2.6 per 1k. Its average home value is $408,513.
- Monroe Township, NJ has a population of 45,342 with a Property Crime rate of 2.6 per 1k. The city home value averaged $410,083.
*Based on FBI Uniform Crime Reporting 2019, some cities have been eliminated because of changes in the state/local agency's reporting practices and cities with populations under 10,000. Zillow’s State/Cities average home value for a single family home or a condo as of Sept. 2020.
Compare Home Insurance Rates in New Jersey
Top homeowners insurance companies in New Jersey
According to J.D. Power’s survey of home insurance companies in New Jersey, the following companies are the best.
Amica was rated 902/1000 and awarded an A+ from AM Best and an A+ from BBB, proving that Amica offers quality and the best customer service.
The Hartford came in second with 896/1000 from J.D. Power, an A+ from AM Best and an A+ from BBB.
Farmers came in third with 893/1000 from J.D. Power, a B++ from AM Best and an A+ from BBB.
New Jersey Home Insurance FAQs
Will my insurance go up if I get a new roof?
If you get a new roof your insurance rate may go down. Roof maintenance is very important for homeowners because a faulty one may cause damage inside the home in the event of hail or any type of bad or extreme weather.
Is it better to have a high or low deductible for home insurance?
The answer to this depends on your financial situation. The higher you set your deductible, the less you pay each month. And hopefully, you’ll never file a claim. But keep in mind that you must pay that deductible before insurance begins to pay for repairs. If you think you’ll struggle to pay, let’s a $2,000 deductible, it may be a good idea to choose a lower one.
Should I show my contractor my insurance estimate?
You have the right to get an estimate from your contractor or to allow the insurance company to do the estimate. If you have a contractor you trust, speak with your insurance company and let them know first.
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At the top of the list, is reviewing insurance policies. Are you getting the coverage you need at the price you want? If not, it may be time to change policies. Need a different price? Shop around for better offers.
Gutters and downspouts work to navigate water flow off the roof so that there is no standing water that can lead to complications such as rotting wood, rotting fascia and foundation cracks
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Do you hear gurgling or trickling noises from the toilet? Does water drain more slowly than usual? Do you have a sink hole in your yard suddenly? Is your grass suddenly vibrantly green in patches?
If you're a new homeowner or if you simply decided to look into what homeowners insurance covers, you probably have a few questions about your policy. We have answers.
Keep in mind that in order to get paid for the tree removal you will have to first pay your deductible. Your deductible costs anywhere between $250 and $1,000 so it may make sense for you to pay for the tree removal out-of-pocket. Also, your rate may go up if you file a claim. Is it worth it?
With all the benefits that come with owning a swimming pool there are also risks, which is why swimming pools are often called “an attractive nuisance.” According to the Centers for Disease Control and Prevention (CDC), approximately 10 people die from unintentional drowning.
Mortgage payments and possibly a homeowners warranty aren’t the only costs of owning a home. Nope, it doesn’t end with taxes and homeowners insurance either. Most people who set out to buy their first home are in for a surprise when the closing date approaches and they learn that they owe all sorts of money for the house they just bought.
Homeowners insurance was not designed to cover small or even big fixes, but to repair damage that is covered under the stipulations of your policy. In fact, you may end up paying more in monthly premiums if you file a claim that gets rejected. For this reason, we advise you to fully review your case and your policy to see if you’re covered before filing a claim.
Homeowners insurance is an important protection to have even when it’s not required for a primary home, a vacation home or condo.