New Jersey Home Insurance

Home owners insurance policies, laws and cost comparisons in New Jersey

Home owners insurance is a type of property insurance that covers losses and damages to an individual's house and assets in the house. Home owners insurance also provides liability coverage against accidents in the home or on the property.

In New Jersey, home owners insurance is not mandatory by law, but most mortgage lenders require it as a condition of the loan. The average annual premium for home owners insurance in New Jersey is $1,174, which is slightly lower than the national average of $1,211.

However, the cost of home owners insurance can vary widely depending on several factors, such as the location, age, size and condition of the house, the coverage limits and deductibles chosen, the type of policy purchased, and the claims history of the policyholder.

There are different types of home owners insurance policies available in New Jersey, each offering different levels of protection and coverage. The most common types are:

- HO-1: Basic form policy that covers 10 named perils, such as fire, lightning, windstorm, hail, explosion, smoke, vandalism, theft, volcanic eruption and riot.

- HO-2: Broad form policy that covers 16 named perils, including all the perils covered by HO-1 plus falling objects, weight of ice or snow, accidental discharge of water or steam, sudden and accidental tearing or cracking of a heating or cooling system, freezing of plumbing, and damage from artificially generated electrical current.

- HO-3: Special form policy that covers all perils except those specifically excluded by the policy. This is the most popular and comprehensive type of home owners insurance policy in New Jersey.

- HO-4: Renters insurance policy that covers personal property and liability for tenants who rent a house or an apartment.

- HO-5: Comprehensive form policy that covers all perils for both the dwelling and personal property, unless specifically excluded by the policy. This is the most expensive and extensive type of home owners insurance policy in New Jersey.

- HO-6: Condominium unit owners policy that covers personal property and liability for condo owners. It also covers any improvements or additions made to the unit by the owner.

- HO-7: Mobile home form policy that covers mobile homes and manufactured homes that are used as permanent residences.

- HO-8: Modified coverage form policy that covers older homes that have a replacement cost that exceeds the market value of the home. It covers 10 named perils for both the dwelling and personal property.

Home owners insurance policies in New Jersey also include additional coverages that are not part of the standard policy forms. These include:

- Personal liability coverage: This covers legal expenses and damages if someone is injured or their property is damaged on your property or by your actions.

- Medical payments coverage: This covers medical expenses for guests who are injured on your property, regardless of fault.

- Additional living expenses coverage: This covers extra costs incurred if you have to temporarily move out of your home due to a covered loss, such as hotel bills, food expenses and transportation costs.

- Other structures coverage: This covers detached structures on your property, such as garages, sheds and fences.

- Personal property coverage: This covers your belongings inside your home, such as furniture, clothing and appliances. Some items may have limited coverage or require special endorsements, such as jewelry, art and firearms.

Home owners insurance policies in New Jersey also have exclusions and limitations that specify what is not covered by the policy. Some common exclusions are:

- Flood damage: This is not covered by standard home owners insurance policies and requires a separate flood insurance policy from the National Flood Insurance Program (NFIP) or a private insurer.

- Earthquake damage: This is not covered by standard home owners insurance policies and requires a separate earthquake insurance policy from a private insurer.

- Mold damage: This is usually not covered by standard home owners insurance policies unless it is caused by a covered peril. Some policies may offer limited coverage or require an endorsement for mold damage.

- Wear and tear: This is not covered by standard home owners insurance policies as it is considered part of normal maintenance and upkeep of the home.

- Intentional damage: This is not covered by standard home owners insurance policies as it is considered an act of fraud or vandalism by the policyholder or someone acting on their behalf.