NEw Jersey Home Insurance

[Joe F.]

I have a duplex in southern NJ. I currently have a policy for $1,329/yr. I’m looking for a lower quote. This one is up for renewal in December 2022. 

[John Mocker]

Joe,

You will also need to review what coverage you have for the $1,339 before you start shopping.  Things to consider:

1. what is the building limit and is it adequate to rebuild the structure if it is totally destroyed

2. what is the deductible (what you pay as part of the claim).  Is there a separate wind/storm deductible (some of those can be 2% - 5% of the building limit)

3. How will the policy value the loss.  Will they pay you the Replacement Cost (or full repair cost) or will they pay you the Actual Cash Value (depreciated value).  That is important for a total loss but also for a partial loss.  If you suffer a $100,000 loss and the Building is 30% depreciated, the payout will be $70,000 minus your deductible.

4. What is covered.  Generally the best coverage on the Dwelling Fire policy form is "Special Form".  Then next lower coverage is "Named Perils".  Special Form provides greater coverage.  

5. What extra coverage is included and what do you need.  Some examples of endorsements you may have or need are:

    a. Personal Injury (libel, slander, etc.)

    b. Service Line coverage (buried water, sewer, electric lines)

    c. Equipment Breakdown (for home systems such as burner, HVAC, etc.)

    d. Water/Sewer backup

    3. Ordinance & Law (if the bldg. needs to be rebuilt to different standards/rules, it covers the additional costs)

Once you establish the proper coverage and limits then shop the policy to find the best company/rate combination.