When it comes to purchasing homeowners insurance in NJ to protect your home and family, it’s helpful to know exactly a homeowners insurance policy is, what’s covered, what’s excluded, and whether you really need it.
What is homeowners insurance?
Homeowners insurance is defined as a form of property insurance designed to protect an individual’s home against damages to the house itself, or to the possessions in the home. It also provides liability coverage to you and your family against accidents in the home or injuries on the property.
Most damages from disasters, likes fire, theft, and certain natural disasters are covered; however, there are exceptions. For instance, depending on where you live, damage caused by floods or earthquakes are not covered under your standard homeowners policy and must be purchased in a separate policy.
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Do you really need homeowners insurance?
Although you aren't legally required to have homeowners insurance, if you want to borrow money from a mortgage bank, your lender will probably insist on it. In addition, if you own a condominium or a co-op, the tenants' association might require you to have insurance coverage, since if something happens to your condo it could affect everyone else's.
It just doesn’t make sense not having it when you consider that the policy can save you thousands, possibly millions, of dollars if your home is damaged or destroyed or someone attempts to sue you after being hurt in your home.
What does a homeowners insurance policy cover?
- The structure of your home
- Your personal possessions and belongings
- Your liability to others including relatives, friends, or guests
- Additional living expenses (ALE) incurred if your home is damaged or to cover housing costs during repairs
While there are so many other factors to consider when purchasing homeowners insurance, The Ross Maghan Agency in Matawan, NJ is here to answer any questions you may have. If you’re interested in getting a quote, give us a call at (732) 566-0003 or use the form at the right to request more information.
What makes up a homeowners insurance policy?
Although homeowners insurance policies differ in their actual structure, most contain the same basic components:
Declarations Page — Usually the first page of your homeowners insurance policy, it typically contains the following summary information:
- Name and address of the insured
- Dollar amount of coverage in the policy
- Description of the insured property
- Cost of the insurance
- Name of the insurance company insuring the risk
- Contact information
Definitions — Explain the meaning of terms used in the policy.
Coverage — Details the extent of protection for both property (house, structures, contents) and liability (bodily injury or property damage to others for which you are liable) in your homeowners insurance policy.
Exclusions — Explanation of what is not covered by your homeowners insurance policy, under both property and liability coverage.
Conditions — Outline the responsibilities of both the insured and insurance company under the policy. Your duties in the event of a loss and also the procedures the company will follow to settle any losses are detailed here.
Endorsements — Riders, amendments or attachments that alter the standard coverage provided by your home insurance policy. If you choose endorsements for your policy, you may pay an additional premium for them.