Insuring your home is not as simple as filling out a form with a few details about your home, getting some quotes and signing a policy. In order to make sure that you are getting the right policy for you at the best price possible there are certain things that you need to know about New Jersey homeowners insurance before you make any big decisions.
Find out about coverage exclusions
Most insurance companies will not cover certain events in their basic options. For example, flood or earthquake damage is not considered a standard option and you may need to pay for these separately. This could considerably increase the cost of your policy so make sure you include these extras in your quote.
Find out what the claims limitations are
Basic policies from somewhere like this will often have a standard claims limit when it comes to things such as liability insurance, and this should be clearly explained to you. However, any extra coverages such as theft or flood damage will have variable claims limitations depending on the insurer. For example, if you have a lot of expensive jewelry in your home and this gets stolen, the amount of money you can claim from the insurance company is unlikely to cover the value of the lost property.
Know the Replacement Cost
If you end up in an extremely unfortunate situation where your home is destroyed, the amount of money you will receive to replace your home will be limited to the maximum amount your coverage offers. Therefore, you need to be sure that the coverage you purchase is high enough to cover the value of your home.
Know the Actual Cash Value
If your home is destroyed and you choose not to replace it. Maybe you have another property elsewhere or you decide to move in with family or friends, then you will still be able to make a claim for the damage, however this will be the actual cash value of your home in the current climate, not the amount that you paid for it. So, make sure you are fully aware of the cash value of your home and that your coverage reflects this.
All New Jersey homeowners insurance policies will include a liability coverage. This serves to protect you financially if any accidents happen in your home that cause injury to another or another’s property. There will be an upper limit to this coverage, so make sure it is high enough to cover your needs.