You probably didn’t intend for that tree to fall on your roof and damage your house. Neither did you wish for those thieves to break into your house in the dead of night to take some of your personal belongings. Yes, there are a bunch of dangers that can happen even if you’re in the comfort of your home. While we can’t all afford to get custom-built roofs, walls, and interiors made of unbreakable steel and neither can we control those around us to refrain from stealing or doing damage to our property, there is something we can do to protect our home even when these things happen. Buying homeowners insurance for New Jersey residents is the best defensive move you can take if you want to keep your estate safe from the dangers that surround it every day.
The Benefits of Having Homeowners Insurance for New Jersey Residents
- Hazard Insurance – Have you ever heard those stories from friends and family saying that their homes were damaged by storms, fires, vandals, and even theft? You probably found yourself wondering how they managed to pay for all of those repairs. The answer is that they had a policy to cover for the damages. Residents will pay for the repairs necessary to bring your home back up to code and will even grant you a certain amount of money to replace any possessions or personal belongings that were damaged or stolen. This is particularly ideal for people who live in hazardous areas or localities where fires, storms, and thefts are common.
- Liability Insurance – Let’s say you have a pool in your backyard and that one of the neighbor kids managed to trip and fall because of the wet floor around it causing a few injuries. You would expect that this kid’s parents would look to you to pay for the bills because the incident happened on your property. We might not all have the luxury of financial flexibility to be able to shell out cash to answer for those costs, and that’s where your homeowners insurance for New Jersey residents steps in. If your property is insured, you can rest assured that any accidents or injuries incurred on your estate will be answered for by your carrier, that is of course, if the incident falls within certain parameters.
- Required for a Mortgage – When you take out a mortgage, your lender will use your house as collateral for the money they give you. That means if your home goes through damaging occurrences, its value might no longer be good enough to function as collateral for what you’ve been lent. That said, before you can take out a mortgage, you have to first insure your property so your lender can be sure that they can still use your house as collateral even when disaster strikes.
Calculating Your Premium
If you’re a first timebuyer, you might be wondering exactly what premium means. Sure, your parents, your co-workers, and your agency has probably tossed the term around a bunch of times, but it still isn’t actually all that clear when it comes right down to meanings. To clear out the smoke, a premium is a monthly fee that you will have to pay in order to avail of the benefits of your insurance. Premiums change and will either increase or lessen depending on the risks that surround your home. If you’re property is at high risk for dangers, then your agency might charge you a higher premium. If you’re estate on the other hand doesn’t seem to be at risk for anything and you just want to have coverage for the sake of having something to fall back on, your provider will most likely charge a smaller premium.
If you feel that your premium is a little too steep, you can opt to pay a higher deductible instead. What does that mean? Think of it this way – every time you make a monthly premium payment, a portion of it goes into an imaginary fund. It is this fund that your agency will use to answer for any damages and repairs that your house may incur within the term period. That said, if you pay a higher premium, your imaginary fund will be significantly larger and might even be enough to answer for up to 90% of the repairs. The 10% is the deductible, that is, the amount you will have to pay from out of your own pocket. If you decide to pay a smaller premium now, the imaginary fund will be a whole lot smaller, and the end result is that you will have to pay for a bigger amount to cover what your smaller premium wasn’t able to pay for.