New Jersey renters insurance median cost is about $8-$9 a month or $104 annually. This rate will include coverage for your personal property, loss of use, personal liability, and medical payments to others entering your home.
Signing the lease on your new house or apartment probably has you excited about your new rental, but you’re likely not eager to think about more bills or paperwork. It can be quite a hassle to shop for insurance on you’re own—not to mention taking away time you’d rather spend moving.
Luckily, renters insurance
is easy and affordable to purchase with the help of car insurance comparison and broker app Jerry
. Here, we’ve put together a hand guide to everything you need to know about renters insurance in New Jersey
. What is renters insurance?
Renters insurance protects your personal property in a rented apartment, condo, or home from unexpected circumstances such as theft, fire, and sewer backup damage. It also covers the cost of lost or damaged possessions, as well as protects you from liability should someone get injured while on your property.
A renters insurance policy in New Jersey typically includes the following coverages:
Personal property (Coverage C): This coverage pays for the value of your personal property should it be damaged, destroyed, or stolen in a named peril.
Loss of use (Coverage D): Loss of use, or ALE coverage, pays for your additional living expenses, including housing, food, and other essential expenses are provided should you need to find alternate housing if your rental is temporarily uninhabitable after a named peril.
Personal liability (Coverage E): If you are found legally responsible for someone else’s injury or property damage, this insurance covers your legal fees and any amount you are legally required to pay during the process.
Medical payments to others (Coverage F): If a visitor is injured while on your property, this insurance helps to cover their medical bills.
To calculate how much property coverage you will need, start by taking inventory of all belongings such as furniture, electronics, and clothing. If you can, make note of:
Descriptions of items (in good condition, damaged, etc.)
Serial numbers of appliances (if possible)
What does renters insurance cover?
Your renter's insurance will only cover what is named in your policy. While policies vary between property owners and physical location, certain events are covered in most renters insurance policies. These include::
Bodily injuries on property
Certain natural disasters
It’s important to note that some natural disasters may not be covered in all policies. Most New Jersey renters will want to find a policy that covers severe storms, tropical hurricanes, and floods.
What does renters insurance not cover?
The following are not covered in most insurance policies:
Disasters such as earthquakes or floods. Often, natural disasters of this magnitude are not covered by your regular renters or home insurance. You can purchase additional flood or earthquake insurance to cover these instances.
Valuables. Collectibles or valuables such as jewelry also will need additional insurance as they are not under basic renters insurance plans.
Roommate(s) belongings. Your renters insurance policy will generally not cover your roommate’s items, and they will need their own insurance policy
Vehicle coverage. Though your vehicle may park on your rented property, car damage or theft
is not covered under renters insurance.
Is renters insurance required in New Jersey?
While renters insurance is not required by New Jersey law, most landlords will require you to have your own coverage.
Regardless, it’s a wise idea to purchase renters insurance. It’s relatively inexpensive and will not only protect your belongings should they be damaged or stolen, but it also will guard your legal liability should a guest on your property become injured.
In the state of New Jersey, the average cost of renters insurance annually is $104. New Jersey’s average cost falls about $56 below the national average which equals an average of just about $8 a month.
Key takeaway While your state may not require renters insurance, it’s usually a precautionary and smart decision to purchase a plan.
How to build a New Jersey renters insurance policy
There are a few steps to take to build a renters insurance policy in New Jersey:
Inventory your belongings. Before starting a plan, you will need to inventory all that you own. Take note of furniture, electronics, and other valuables. It’s also helpful when verifying claims to have purchase dates, purchase prices, and serial numbers of your items. Take a video or picture of your items to help support your claim.
Find an insurance company and policy. Once you have an understanding of your belongings and the type of coverage you’re looking for, you will need to begin looking for a policy that gives you both your desired amount of coverage as well as low rates.
Choose a personal liability limit. Many landlords may require a certain amount of liability coverage (usually $300,000 to $500,000), but you may be able to opt for a lower limit closer to $100,000.
Actual cash value vs. replacement cost
When choosing your renter's insurance policy, you’ll need to decide between “actual cash value” (ACV) and “replacement cost” coverage.
ACV coverage will reimburse you the current value of your property, considering factors like depreciation, age, and condition. Conversely, replacement cost coverage pays the actual cost of replacing your possessions with no deduction for depreciation. Replacement cost coverage tends to be more expensive than ACV coverage, but it could be worth it if you need to replace expensive items in the long run.
Key takeaway Actual cash value, which pays what the property was worth at the time of damage, while replacement cost pays the full cost of replacing the items with new ones.
How to find cheap renters and car insurance
It’s not too difficult to find a good rate for renters insurance.
However, you can save even more money by bundling your home and auto insurance. Not sure where to start? Jerry
can help! Jerry is a licensed insurance broker ready to compare quotes from up to top insurance companies in 45 seconds or less. Jerry will offer you the best deals for the best coverage.
“Jerry
let me customize my preferred auto and renters insurance so that I saved $100. I never even considered looking into Travelers but now they’re my policyholders! This app rocks.” —Jamie A.
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