Types of Homeowners Insurance in New Jersey

best insurance quotes in New JerseyHomeowners Insurance is a type of property insurance designed to shield the individual against expenses incurred by damages to one’s property. May it be damage to the property, the house itself or the assets within the house or property, homeowners insurance can cover all of that.

Should I Purchase Homeowners Insurance?

Yes, you should. For many people, their homes (whether they are homeowners or renters) are their largest assets. This puts most people in a vulnerable place because they would be put in financial difficulty if anything should happen to their homes and this is where homeowners insurance from newjersey-insurance.net comes in. If your property happens to be your most expensive asset, it would pay for you to have it covered.

In New Jersey, and the rest of the United States in general, there are several types of homeowners insurance.

Homeowners 2 (HO-2, Broad Form) is a named-perils policy. This means that coverage only includes perils name in the policy and no more. Perils may include fire, explosion, lighting, hail or windstorms or any other perils your service provider may include. HO-2 also typically provides living expenses if the insured property is uninhabitable.

Homeowners 3 (HO-3, Special Form) has the widest coverage for the price and that is why it’s the most commonly availed type of homeowners insurance. The best insurance quotes in New Jersey will probably have one or two options of HO-3’s thrown in the mix. HO-3 is an open perils policy. It covers direct damage to the property unless otherwise [specifically excluded]. Losses on realty are insured for full replacement, with some restrictions. Loss of personal property is for named perils only, similar to an HO-2 policy.

Contents Broad Form (HO-4) is a modified HO-2 policy designed for renters of rooms, apartments or houses instead of homeowners. It is basically still a perils-named policy with the inclusion of a liability insurance of at least $100,000 for injuries to other people in the rented dwelling.

Homeowners 5 (HO-5, Comprehensive Form), as the name suggests this type of homeowners insurance is also an open perils policy that not only includes coverage on the realty but on personal properties as well. Any direct damage to personal property or realty is included unless otherwise specified. When you are looking for the best homeowners insurance quotes in New Jersey be sure to ask your broker to include some HO-5 policies for you to review. It may cost much more than an HO-3 but is worth the extra amount if you can afford it.

Unit-Owners Form (HO-6) is a type of modified HO-2 policy specifically designed for condominium or cooperative owners. To the insurance company there are two types of properties in a condominium: the building and its common areas and the specific unit of a unit owner. This name-perils policy covers semi-permanent fixtures in the unit such as carpeting, built-in appliances and kitchen cabinets, and wallpaper. The structure of the unit itself as well as the common areas should be covered by the building’s own insurance policy.

Modified Coverage Form (HO-8) is for older homes that may have replacement costs that could be much higher than its market value. There are certain areas in New Jersey that are quite calamity prone so when looking for the best homeowners insurance quotes in New Jersey it would be prudent to include extra coverage for calamities like earthquakes or typhoons that might not be included in a basic policy.