Homeowners Insurance in NJ
Do you have the right coverage?
Homeowners insurance coverage helps pay for repairs to your home and replacement belongings if they are damaged or destroyed. Common occurrences that lead to homeowners claims include theft, storms and fires. 52% of homeowners with insurance, don’t have a clear understanding of their coverage.1
Standard Homeowners Insurance Policy
While it’s recommended you speak with an agent about custom coverage to fit your individual needs, most typical homeowners policies cover the following:
- Your Dwelling – Your dwelling, or the structure of the home you live in and associated structures including a garage and deck, is the most common component of homeowners insurance coverage.
- Other Structures – Other structures that might be protected include tool sheds, detached garages, fences and other structures that are technically on your property, but are separate from your home.
- Personal Property – Effects such as electronics, furniture, sports equipment and other personal items are generally covered under your homeowner’s policy. If these items are damaged or stolen, your coverage may pay for them to be repaired or replaced.
- Liability – In the event of property damage or bodily injury caused by, on or to your property, you’ll want to make sure you have proper liability coverage. This can include somebody slipping on a wet floor inside your home, or if your dog causes damage to your neighbors home. Liability coverage does have limits when it comes to paying for legal or medical expenses, so you might consider an additional umbrella policy on top of it.
- Additional Living Expenses (ALE) – If you are unable to live in your home to damages from an insured disaster, your homeowners insurance coverage might pay for your additional living expenses. This includes hotel and meal costs, along with any other normal living expenses you incur due to relocation.
Take Inventory
On average, only 48% of homeowners prepare an inventory of their possessions to help document losses for their insurers. Having a well organized inventory of your home’s contents can make a big difference in how you will be reimbursed for these items. 2
Termites eat away at your home, and pockets
Termites damage approximately 600,000 homes in the U.S. each year. U.S. residents spend an estimated $5 billion annually to control termites and repair termite damage. 3
$5,000,000,000
Special Cases and Limitations
There are a number of occurrences that are not included under standard homeowners insurance coverage:
- Floods and Earthquakes – While most homeowners policies cover your dwelling and belongings from most natural disasters, floods and earthquakes are excluded from that list. Each of these natural disasters will require additional coverage, and are recommended whether or not you live in high-risk areas.
- Termite Infestations – Termite destruction is likely not covered under your homeowner’s policy. Why? Termite damage can be attributed to a lack of proper home maintenance, which an insurance company will not pay out for. You should have your home inspected regularly to limit your risk of pest issues.
- Jewelry and Family Heirlooms – Not all personal items will be covered under your homeowner’s policy. Items such as jewelry, art and family heirlooms that don’t have a defined value might require additional coverage. Even with additional coverage, it’s important to know if your policy will replace these belongings as if they were new, or based on their value at the time of the loss. This is where an inventory list will come in handy.
- Coverage Limits and Deductibles – Don’t forget that even the standard coverages are subjects to limits, which is the maximum amount that your policy will pay out. Make sure you know these limits so there are no surprises when the time comes to make a claim. You’ll also want to review your deductible, and whether or not you need to pay it before you can receive benefits. Some policies also include time limitations.
