subject: Homeowners Insurance Nj For You [print this page] Homeowners insurance NJ is what many New Jersey residents are thinking about after purchasing new real estate. However, unless they have dealt with this type of insurance before, they may not know which policies to buy. Even worse is the possibility that they end up being overcharged on something that does not cover their basic needs. To resolve both issues, it is important to know the facts behind these policies. With this knowledge, you will avoid being duped. Any policy you buy will meet your needs while staying within your budget. With that being said, you should realize there are many policies falling under the "homeowners insurance NJ" umbrella. The most popular one is the HO-3 policy; it offers standard coverage for homeowners. Through the HO-3 policy, you are protected against most natural disasters, theft and vandalism. You also receive liability coverage, in the event someone gets harmed on your property. However, personal contents are not covered at all. To get them covered, you must get an HO-5 policy. It offers the same benefits as HO-3, while still protecting your belongings. A variant of this policy can be found in the HO-4. Known as contents insurance, it is designed for those dwelling in apartments or rental homes. With these policies, protection is extended to a tenant's belongings as well as any external fixtures in their home, (like cabinets or lighting). The building itself is not covered because that is the responsibility of the landlord. In fact, there is even insurance for such situations; it is known as HO-6. It provides compensation for the whole unit should something unfortunate happen.
Anyway, these are the insurance options you should be looking at if you own or rent a piece of real estate. Policies not following these titles should be approached with caution. This is particularly the case with HO-1 and HO-8 policies. HO-1 policies offer the bare-bones minimum in terms of coverage. It is not as common as HO-3s, but unscrupulous companies may still try to pass them off as "regular" insurance. You are covered for a specific list of perils, ranging from fire to theft. If a problem is not covered on this list, you will not receive compensation. The HO-8 policy works in a similar manner except it will compensate you for the whole house. Now, on the surface, it would seem you get more with such a policy. In truth, these policies are still designed with the insurers' interests in mind. You will never receive more than the home's market value, even if your replacement costs exceed that amount. This is why these policies are pushed onto homeowners with older real estate, as insurers believe the homes would be too expensive to repair. Either way, you are better off with a standard policy. If you must turn to HO-1 or HO-8 policies, make sure you pay the cheapest rates possible.
by: Brenda Fullwerth
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