Homeowners Insurance NJ Home Insurance rates and consumer help for insuring your New Jersey house. Get free quote help and rates as you learn various NJ policy coverage types.
Homeowners Insurance - NJ Home Insurance rates and consumer help for insuring your New Jersey house. Get free quote help and rates as you learn various NJ policy coverage types.
NJ Home insurance, or NJ homeowners insurance, is an insurance policy that combines various personal insurance protections which can include losses occurring to one's home, its contents, loss of its use, additional living expenses, loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.
NJ Home Owners Insurance policies can be complex and some policyholders
may not understand all the fees included in a policy. As a result,
people could buy policies at unfavorable terms. In response to these
issues, government entities often make detailed regulations that
set down minimum standards for policies and govern how they may
be advertised and sold.
DON'T BE UNDERINSURED
If you don't maintain enough insurance coverage and your dwelling
is damaged, your loss may not be covered in full.
Obviously, if the full cost of rebuilding your dwelling is $100,000
but you buy only a $60,000 policy, and your dwelling is completely
destroyed, you will receive only $60,000 in insurance coverage.
But there is another impact of buying too little home insurance.
If you don't have the proper coverage and part of your dwelling
is damaged (for instance, a windstorm destroys your roof), you may
not receive full insurance reimbursement for repairing that part
of your home. You may receive only partial reimbursement.
This is true even though the cost of repairing that part of your
home would be much less than the face value of your policy.
So, if the full cost of rebuilding your dwelling is $100,000 but
you buy only a $60,000 policy and the cost of replacing your roof
is $2,000, you would receive less than $2,000 insurance reimbursement.
The actual amount would depend upon how underinsured you are, or
upon the wear-and-tear depreciation of that portion of your dwelling
before the loss occurred.
To receive full reimbursement for your losses under Coverage A Dwelling,
you should buy coverage for 100% of the replacement cost of your
dwelling. The replacement cost is the amount needed to rebuild the
structure, not necessarily the market value. If your insurance coverage
is less than 80% of the dwelling's replacement cost at the time
of the loss, you will be considered underinsured and may receive
only partial coverage.
How do you determine if you have enough dwelling coverage? We can
assist you in estimating the approximate reconstruction cost of
your home through the use of a program developed by the leading
provider of building cost information. Customers are receiving surveys,
which provide details about the various components of their homes,
to fill out and return. New policyholders receive these forms after
their initial home inspections take place; renewing policyholders
get them before receiving their renewal questionnaires. Customers
are reminded - it is required to insure homes to their proper value.