Buying and owning a home is a goal for many people in and around New Jersey. Unfortunately, many people spend a lot of time finding the perfect home only to choose their homeowner’s insurance policy just by picking an insurance company name they recognize.
Taking the time to compare house insurance companies and policies are important. It can result in saving thousands of dollars on the policy over the life of the home, plus it can also make a very big difference should there ever be the need to file a claim.
Coverage Options
A very common mistake is to choose house insurance based on cost and the minimum required coverage. Typically, the mortgage lender will require a specific insurance coverage amount. However, there may be additional types of coverage required as well based on your location and other factors.
Getting minimum coverage may satisfy the lender, but it may not provide the protection required. Policies will either cover named perils or all perils except listed exclusions. The age of the home, the home’s value and the potential risks to the home for damage should all be considered when choosing the policy.
Know the Terms
There are a lot of different terms used in a house insurance policy. Be sure to ask your insurance consultant to explain any terms which are confusing or unclear. Be clear on the amount of the deductible as well as the premium. Ensure the policy offers liability coverage to protect the homeowner if someone is injured on the property.
In some cases, New Jersey homes may require additional riders over the standard insurance policy. This will provide protection for high-value items not covered under the general homeowner’s insurance. These riders are an addition to the policy and will be an additional cost to the basic coverage.
