How Much Home Insurance Do I Need in New Jersey?

A common question among new homeowners and seasoned property owners alike is: “How much home insurance do I need?” The answer depends on the value of your home, the value of your possessions, and the total value of your assets. Taking the time to work with your agent or Plymouth Rock representative to determine the appropriate level of coverage for your needs can help you fully enjoy your home.

The Value of Your Home

You’ll want enough coverage to rebuild your home in the event of a covered loss, which includes fire, lightning, hail, and explosions under most policies. This number may differ from the purchase price of your home, even if you recently bought your home. A quick estimate can be calculated by multiplying the square footage of your home by the average building costs per square foot in your area, which your agent or representative can help you determine. You should consider other structures, upgrades, and special features of your home when determining this amount.

The Value of Your Possessions

A good way to determine coverage for your contents is to conduct an inventory of all your personal belongings. This should include clothes, electronics, artwork, jewelry, furniture, collectibles, and important family heirlooms. For unique or one-of-a-kind items, consult a professional if necessary to determine each item’s value. Expensive items may require floaters or endorsements that your agent or representative can help you identify.

The Total Value of Your Assets

The liability limits under your homeowners insurance policy provide coverage for lawsuits if you, your family, or your pets cause bodily injury or property damage to others. If the total value of your assets, including your savings, retirement fund, and belongings, is greater than available liability limits, you may want to consider supplement coverage through an umbrella policy.  Learn more information about umbrella coverage by clicking here.

Additional Considerations

In the unfortunate event your home becomes unlivable, you will likely incur additional living expenses. Consider the costs of hotels and dining out for an extended period of time. Your homeowners insurance can cover you for these expenses if you can’t live in your home due to a covered loss.

Another important consideration is that most homeowners insurance policies do not cover damage caused by flooding. A flood insurance policy may be worth discussing with your agent or representative, even if your home is not located in a flood zone.

You can also look at details about home insurance for a second home and buying a home and car insurance.  Find out more information about what you do if your house floods.

Call Plymouth Rock in New Jersey at 855-993-4470 or find a local agent for a personalized quote on homeowners insurance, or if you have any questions you can visit our Contact Us page.