Home Owners Information for New Jersey

NJ Home insurance, or NJ homeowners insurance, is an insurance policy that combines various personal insurance protections which can include losses occurring to one's home, its contents, loss of its use, additional living expenses, loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

Extended NJ Homeowners Insurance: COVERAGE BY ENDORSEMENT

Most New jersey policies are designed to meet the needs of our average policyholder. NJ Insurers usually chose to exclude coverages most of you do not need. However, after reviewing the basic coverages automatically provided, you may feel your unique needs require more specific or additional protection. You may be able to purchase that protection by endorsement.

An endorsement is an attachment to your NJ home insurance policy that amends the coverages already provided. The following are some of the more commonly purchased endorsements and the coverages they provide; others are available upon request. If made a part of your policy, each of these endorsements will result in an additional charge.

Policy deductible applies to each endorsement unless otherwise indicated.

HO-32 Special Coverage Endorsement - (Condo Unit policies only) Without this endorsement, damage to the residence premises is covered only if it is caused by one of the perils listed in the policy. This endorsement provides broader coverage - responding to any cause except for those specifically excluded. For instance, this endorsement would cover accidental damage to floors, ceilings and walls such as spilling paint, or scorching a kitchen countertop with a hot pan.

HO-35 Loss Assessment Coverage - If you belong to an association of property owners, and if the association is liable for someone else's Bodily Injury or Property Damage, or if you must pay your share of covered damage to the group's jointly owned property, the policy will cover up to $1,000 of your share of this cost. This endorsement permits you to buy coverage higher than $1,000 or coverage for more than one location.

HO-48 Other Structures - If you feel that the limit for Coverage B Other Structures automatically provided by your policy (10% of your Coverage A Dwelling limit) is not sufficient, this endorsement can be used to increase your coverage.

HO-53 Credit Card, Fund Transfer Card, Forgery and Counterfeit Money Coverage - All policies will pay up to $500 if your credit card or fund transfer card is used by an unauthorized person, or if you experience a loss as a result of a check forgery or the acceptance of counterfeit money. If you feel that $500 is not enough protection, this endorsement is used to increase your coverage. (Policy deductible does not apply.)

HO-61 Scheduled Personal Property - This endorsement provides broader protection for specific articles of jewelry, fur and/or silverware by describing the covered items on your policy. An up-to-date appraisal which must be acceptable to our underwriters is required for each item before coverage can be afforded. For additional information, please request a Scheduled Personal Property application package. (No deductible applies.)

HO-65 Coverage C Increased Special Limits of Liability - This endorsement can be used to increase the basic coverage for items 1, 2, 5, 6, 7,10 and/or 11 in the Special Limits section of this Guide.

Other insureds Locations - If you own and occupy another one- or two-family residence, this endorsement can extend your Personal Liability and Medical Payments to Others coverages to that location. (Policy deductible usually does not apply.)

HO-70 Additional Residence Rented to Others Coverage - For an additional premium, you may extend your policy's Personal Liability and Medical Payments to Others Coverages to any one- or two-family residence you own and rent to others.

HO-75 Watercraft Endorsement - All policies automatically provide Personal Liability and Medical Payments Coverages for: (1) any watercraft equipped with inboard or inboard-out board motor power of 50 horsepower or less if rented to you, (2) a sailing vessel less than 26 feet in length if owned by or rented to you, and (3) any watercraft powered by one or more outboard motors with 25 or less total horsepower if the outboard motor (s) is (are) owned by you. If you own or rent a type of watercraft not included above, Personal Liability and Medical Payments may be obtained by purchasing this endorsement. Damage to your watercraft itself is not covered by this endorsement. (Policy deductible does not apply.)

HO-95X Water Back-up Coverage - The standard policy does not provide coverage for any loss caused by water which backs up through sewers or drains. However, the HO-95X endorsement provides up to $5,000 for this type of loss. The maximum benefit limit is concurrent with your other coverage amounts; it does not increase the total limit of Coverage A (Dwelling) for HO-1, HO-2, HO-3 and HO-6 or Building Additions and Alterations for HO-4, B (Other Structures), C (Personal Property) or D (Loss of Use) stated in your policy declarations.

HO-95 Water Back-up and Sump Overflow Coverage - The standard policy does not provide coverage for damage caused by water back-up and for water overflowing from a sump. However, if you inform the Insurance that your dwelling has a sump pump, this endorsement may provide up to $5,000 for this type of loss, even if it is caused by the mechanical breakdown of the sump pump. Coverage does not apply, however, to the sump pump or related equipment caused by mechanical breakdown. The maximum benefit limit is concurrent with your other coverage amounts; it does not increase the total limit of Coverage A (Dwelling) for HO-1, HO-2, HO-3 and HO-6 or Building Additions and Alterations for HO-4, B (Other Structures), C (Personal Property) or D (Loss of Use) stated in your policy declarations.

HO-277 Ordinance or Law Coverage - The ordinances or laws of your community may require the rebuilding of a damaged home to be in compliance with current building code standards rather than rebuild the structure as it was before being damaged. This coverage will pay for the additional expense of meeting current building codes up to your Ordinance or Law Coverage limit.

Your policy will provide Ordinance or Law Coverage of up to 10% of your Coverage A (Dwelling) limit at no extra cost for homeowners (HO-1, HO-2, HO-3) or condominium owners (HO-6) policies. The HO-277 endorsement will increase coverage in incremental amounts above 10% to a maximum of 100% of the Coverage A limit for a higher premium. For renters/tenants (HO-4) policies, the standard coverage for building code upgrades is 10% of the Building Additions and Alterations Coverage amount, and may be increased to 100% of this coverage limit for a higher premium.

HO-290 Personal Property Replacement Cost Endorsement - All policies provide reimbursement for covered personal property losses (not the building itself) based on the actual cash value at the time of the loss but not exceeding the amount necessary to repair or replace the covered property. This means that after determining the amount to repair or replace the covered property at today's costs, a deduction will be made for any depreciation. If this endorsement is attached to your policy, covered property losses will instead be settled at replacement cost value, meaning that we will settle any losses at the amount necessary to repair or replace the covered property at today's costs.

HO-315 Earthquake Coverage - While earthquakes are rare for New Jersey, the possibility always exists. Earthquakes are not covered under a typical NJ homeowners insurance policy. Protection from this risk requires that a separate endorsement (HO-315) be added. Rates for this coverage are lower in New Jersey as opposed to a high-risk area for earthquakes such as California.

Explore Homeowners Insurance Policy Options

The NJ home insurance policy is usually a term contract a contract that is in effect for a fixed period of time. The payment the insured makes to the insurer is called the premium. The insured must pay the insurer the premium each term. Most insurers charge a lower premium if it appears less likely the home will be damaged or destroyed: for example, if the house is situated next to a fire station, or if the house is equipped with fire sprinklers and fire alarms. Perpetual insurance, which is type of home insurance without a fixed term, can also be obtained in certain areas.

In New Jersey, most home buyers borrow money in the form of a mortgage, and the mortgage lender always requires that the buyer purchase NJ homeowners insurance, sometimes called mortgage protection insurance, as a condition of the loan, in order to protect the lender if the home were to be destroyed. Anyone with an insurable interest in the property should be listed on the policy.

^ Wiening, Eric; George Rejda, Constance Luthardt, Cheryl Ferguson (2002). Personal Insurance, 1st edition, Malvern, Pennsylvania: American Institute for Chartered Property Casualty Underwriters/Insurance Institute of America. ISBN 0-89463-108-X.