Home, Condo & Tenant Insurance
While home insurance is not required by the state of New Jersey, most mortgage lenders will require it to protect their investment. Regardless of whether you have a mortgage, carrying homeowners’ insurance is a wise decision given the substantial value of most homes.
Some mortgage companies may require you to insure your home for the full mortgage amount. However, under New Jersey state law, you cannot be required to insure your home for more than its replacement cost, as long as your policy includes replacement cost coverage.
What Is Dwelling Coverage?
Dwelling coverage pays to rebuild or repair your home if it is damaged by a covered loss, returning it to its condition prior to the loss. This is called indemnification.
What Is Loss of Use Coverage?
Loss of Use coverage reimburses you for additional living expenses if a covered loss makes your home uninhabitable. This may include hotels, meals, or loss of rental income if you own a multi-family home.
What Is Other Structures Coverage?
Other Structures coverage applies to detached structures on your property, such as garages, sheds, fences, and pools.
What Is Liability
Exposure Coverage?
Liability coverage protects you if you're sued for injuring someone or damaging their property, even off your premises. Higher-quality home insurance may also cover civil lawsuits like slander, libel, and defamation.
What Is Medical Payments to Others
Medical payments coverage pays for uncovered medical expenses if a guest is injured on your property.
What Does Replacement Cost vs. Actual Cash Value Mean?
Replacement Cost coverage pays to rebuild or repair your home or belongings with materials of similar kind and quality, without deducting for depreciation. Actual Cash Value deducts for age and wear, so payouts may be lower.
Are Floods Or Earthquakes Covered By Homeowners’ Insurance?
Standard home insurance doesn’t usually cover flood or earthquake damage. Flood coverage must be purchased separately through FEMA’s NFIP or a private insurer, though some companies include it in their policies. Earthquake coverage is available as an add-on endorsement.
What If I Run A Business From My Home?
Most homeowners’ policies offer limited or no coverage for business equipment or liability arising from home-based businesses. If you run a business from your NJ home, talk to your agent about adding a home business endorsement or a separate commercial policy.
Is My Home Covered During Renovations Or While Under Construction?
Not always. Major renovations or home-building projects may require a builder’s risk endorsement or policy. Notify your insurer before starting any significant construction to avoid gaps in coverage.