Homeowners Insurance in New Jersey

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If you are buying a home in New Jersey, you should make sure to get adequate homeowners insurance. In addition to the typical coverage, you should consider adding coverage for flooding, wind, and hail.
Buying a home is a big investment, and while there are no requirements from the state for home insurance, it is important to make sure you protect your property and its contents. Most homeowners insurance policies include coverage for theft, vandalism, and fire damage but you should make sure you understand all of the perils included in your policy.
To help you find the best policy, the insurance comparison and broker app, Jerry, has compiled loads of information to help you understand everything that goes into buying homeowners insurance.
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What is homeowners insurance?

Homeowners insurance is an insurance policy that covers your home and its contents. Homeowners insurance helps cover the costs associated with the loss of your home, property damage, and personal liability in the event of an accident causing harm or damage to another person or their property.
The average American pays roughly $1300 per year for homeowners insurance. However, this price varies greatly from home to home.

Basic Components

Home insurance policies typically include coverage in a number of categories. The extent of the coverage in each category will depend on the policy that you choose.

Property damage 

Property damage coverage covers damage to the structure of your house and your personal property. It encompasses 3 categories of coverages: 
  • Structural coverage covers the cost of repairing or rebuilding the house itself
  • Additional structures coverage includes damage to other structures on your property, such as fences, detached garages, and sheds. 
  • Personal property coverage protects the contents of your home and the possessions of the people living inside your home. 

Personal liability

Personal liability coverage protects you in the case that someone makes a claim against you for accidental harm or damage to them or their property. This coverage protects you and your family living in the house and will cover the claim and legal fees only up to the limit in your policy
Importantly, this does not cover any intentional damages or any damage related to the operation of a vehicle, or damages that result from business activities.

Medical payments 

This coverage pays for medical expenses that arise from others being injured on your property, regardless of who is at fault. This coverage does not cover you or your family living in your home and does not cover any injuries that result from the operation of a vehicle, or from business activities.

Additional living expenses

If you need to relocate while your home is being rebuilt or repaired, then this coverage will help with the costs of hotels, transportation, and storage fees. This coverage will only pay up to the limit in your policy and only cover you if the damage to your home was caused by a named peril.

Named Perils

Homeowners insurance will only cover loss or damages that incur from named perils. There is no standard for what is covered in an insurance policy. Be sure to carefully check your policy so you know what is included as a named peril
Some commonly listed perils include:
  • Fire
  • Theft
  • Damage caused by vehicles
  • Vandalism
  • Lightning
  • Falling objects

Is homeowners insurance required in New Jersey?

The state of New Jersey does not have any insurance requirements for homeowners. However, your lender usually does.
Mortgage brokers have a vested interest in making sure your home is covered, and some mortgages will include basic coverage. However, this coverage usually only covers basic structural damages, not your personal property, personal liability, or medical expenses. 
As a result, it is highly recommended that you purchase homeowners insurance to make sure that your needs are being adequately met.
In addition to the typical coverages listed above, it is recommended to add any likely perils to your policy that are not already listed.
Most insurance policies exclude a number of weather-related events, including flooding, earthquakes, hurricane, and landslide or mudslide damage. Some mortgage brokers will require a certain level of coverage for these perils, but living on the east coast it is recommended that you ensure you add these perils as needed to make sure you are covered from likely weather events.
Some additional perils that should be considered include sewage backups, identity theft, and termite damage.
Key Takeaway Make sure you know what is included in your policy, and carefully consider what perils you want to add.

What affects the price of homeowners insurance?

There are a number of factors that will affect the price of your homeowners insurance premium. Some of these factors are:
  • Your chosen deductible – As you might expect, the higher your deductible, the lower your premium will be.
  • Amount of coverage – If you decide you want a higher coverage limit, your premiums increase accordingly.
  • Age of the house – Newer houses typically have lower premiums.
  • Type of construction – More durably constructed houses, like brick homes, tend to have lower premium rates.
  • Adding additional perils – Adding coverage for things like flooding will increase the price of your policy.
  • Discounts – There are a number of discounts available that can help you save money on your insurance payments.

Homeowners insurance discounts in New Jersey

There are lots of discounts available for homeowners insurance in New Jersey. If you are eligible, adding up these discounts can save you a considerable amount of money. 
Some of the things that can lead to a discount include:
  • Installing a smoke alarm or sprinkler system
  • Being over 65 years old
  • Owning a backup generator
  • Being a non-smoker
  • Paying your premium in full
  • Installing storm shutters or hurricane glass
  • Signing up for paperless billing
  • Bundling your home and auto insurance

How to save money bundling your home and auto insurance

Bundling your home and auto insurance can lead to major savings. Insurance comparison app Jerry makes it easy to find the best rate by comparing over 50 top insurance providers to find you the best bundle.
Jerry offers free quotes, available in seconds, to remove the headache from buying insurance. Their expert service will even handle all of the paperwork and cancel your old policy when you find a better deal.
Jerry was wonderful! I used it for my auto and renters policies. I trusted it so much that I signed up for my homeowners insurance under Jerry as well. All of the agents are amazingly nice and knowledgeable.” —Mary Y.
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FAQs

New Jersey is the 14th cheapest state for home insurance. On average, homeowners pay between $900 and $1400 per year, but there are a number of factors that can influence the price of your premium.
The state of New Jersey does not require homeowners insurance, but most lenders do have specific insurance requirements.

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