Information Every New Jersey Homeowner Should Know

As the most densely populated state in the Union, New Jersey stands out above the rest for its unique style and ability when it comes to building, ownership and homeowner issues. One way in which New Jersey is completely like the other states is when it comes to the issue of homeowners insurance. A blanket of protection for residents, this is usually mandated by a mortgage lender for someone who is buying a house, but the mandates by most lenders are minimal and may not offer an adequate amount of coverage for a resident in the event of a damage of incident. For this reason, every consumer is wise to consider raising their minimums and to think carefully about the possibility of disaster and replacement costs.

The Complete Package

These policies are offered as package policies which means that they look after the dwelling and everything in it under most circumstances. There are some exceptions to consider - such as if you run a business out of your house and have employees coming to and from your house, they will not be protected under your policy - rather they should be covered by workers' compensation insurance as mandated by your state's laws. Here are some of the elements offered by a standard plan and what incidents may fall under its umbrella:

• Structure: A standard homeowners insurance policy in New Jersey will look after the structural dwelling and any attached dwellings like a garage if they are damaged. In New Jersey the most common types of damage caused to houses come from fires, storm damage either due to high winds, heavy snow or lightning strikes. Your policy will, after evaluation offer you a settlement amount to help you repair the damage to your house if it has not been completely destroyed.
• Personal Property: Provides money to replace items in your home that are stolen, vandalized or destroyed as in a fire. This is one area in particular where you are well-advised to make sure you have sufficient protection, especially if you have been living in your house for a long while and have a tendency to - as many of us do - "collect things" over time. A person fresh out of college is much less likely to have more than $30,000 worth of personal effects than someone who has lived and grown a family in a home for 15 or 20 years. A good rule of thumb is to have $5,000, plus $10,000 worth of coverage for every person in the residence over the age of 15, and an additional $5,000 for every person under the age of 15. So your typical nuclear family of mother, father, 15 year old daughter and 12 year old son should consider having at least $40,000 worth of personal property coverage.
• Liability:This provides protection for those who are injured on your property and may need medical attention or file suit against you. It also provides protection for any damage your property may cause to others or the property of others (such as if a tree in your yard falls over during a storm and crushes a neighbor's car). Rather than worrying about increasing this particular coverage drastically to protect yourself from a lawsuit, consider a good umbrella insurance policy instead which will protect both your home and your car (in an accident), for excessive amounts of damage or liability.
• Living Expenses: If you are forced out of your residence temporarily (such as after a fire, or during extensive fumigation), your insurance policy may provide funding to help pay for expenses like a hotel room or even paying rent at your mother in-law's house for a few weeks. Not all policies offer this automatically - it need to be requested, so check with your insurance agent or policy documents rather than assuming you are covered.