A house is often the largest investment a person makes in their life and homeowners insurance is the best way to protect that investment. There are several important parts to having New Jersey homeowners insurance that is important to know.
In New Jersey, dwelling coverage is for the physical structure, including plumbing, wiring and permanently installed systems such as a heating or cooling system in addition to attached structures such as a garage.
This is a limited coverage, approximately 10% of the dwelling coverage for unattached structures such as fences or sheds.
Personal property coverage can be considered the contents of the property. In general this is limited to 50% of the dwelling limit and pays actual cash value of the damaged items. This means the replacement cost is for the value of the property now with age and use not what it costs actually replace it.
Loss of Use
When you experience a major loss and have to find temporary living until the damages are repaired, this coverage provides payment for those expenses within limits.
This portion of the policy is coverage for you or a family member who is responsible for injuries to someone else who visits your house. It includes legal defense as well as the actual liability and has specific limits with certain exclusions.
Medical Payments to Others
In addition to personal liability, this coverage is designed to pay medical expenses for anyone injured on your property but does not include residents of the property. This too has limits and exclusions.
All of these are what is considered to be a “base” policy. Additional coverage can be purchased for all or any individual section of a base policy. It is important to note that all policies exclude coverage for water damage caused by flooding. A separate policy needs to be purchased for flood insurance, especially if the dwelling is located in a flood zone.
In addition to the exclusion of flood, New Jersey homeowners insurance doesn’t cover normal wear and use, sewer back up, war, natural disaster such as an earthquake, business and oil tanks. Additional coverage can be purchased for these situations.
The regulation agency in New Jersey is the Department of Banking and Insurance. This department strongly urges New Jersey residents to shop around for the best policies and to understand any deductibles, limits and exclusions before purchasing.