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What Does Homeowners Insurance Cover in NJ?

When you buy a home in New Jersey, getting homeowners insurance is near the top of your priority list. The implication when buying a policy is that if something bad happens, you will be able to pick yourself up financially, repair your home, and move on with your life. Lenders require that a new homeowner purchase insurance as part of the mortgage when buying their home. But having coverage can mean a lot of different things, so it is best to understand what type you are purchasing, and what you can expect it to cover. Get a free homeowners insurance quote online.


Dwelling insurance is the primary coverage the lender will require you to purchase with your home. Dwelling coverage protects against damages to the structures of your home itself as well as the plumbing, wiring, and heat and air conditioning systems that are permanently installed.

Other Structures

In addition to covering your home, homeowner policies also cover structures other than your actual house, such as fences, sheds or unattached garages. The coverage level on these is much lower - usually 10% of dwelling coverage.

Personal Property

Coverage of personal property applies to the cash value of the property, not replacement costs. Personal property includes items such as furniture, clothing, etc.

Loss of Use

Loss of Use pays your expenses to stay somewhere else while your home is unavailable and being repaired after a covered loss. Extra expenses that are incurred from staying elsewhere, such as hotels, meals, and laundry, are covered up to 20% of dwelling coverage.

Personal Liability

Personal liability is an important component of home insurance because it is protection for visitors to your home, should they become injured on your insured property. Coverage is based not only on the cost of the injury, but the cost of a legal defense as well. It also provides coverage for many injuries caused by your negligence, however injuries resulting from auto accidents are not covered by homeowner policies.

Medical Payments to Others

Similarly, medical payments and bills are covered for injuries that happen at your home. Coverage is usually limited to $1,000 per person, unless additional coverage is purchased.

Other Important Coverages

Below are some of the included homeowner insurance policy coverages:

  • Credit Card Coverage
  • Debris Removal
  • Damage to Trees and Shrubs
  • Scheduled Personal Property Endorsements

What's Not Covered

  • Any Damage Related to a Flood


Floods can cause major damage to your home, but this isn't covered under your homeowners policy. Instead, homeowners should carry a separate flood insurance policy.

  • Replacement Costs of Property
  • Loss of Pets
  • Building Code Maintenance
  • Oil Tanks (some companies may provide coverage)
  • Home-Based Business
  • Damage resulting from lack of maintenance or ‘wear and tear’


No two homes are exactly alike. That's why when you are making a decision about coverage you really need to take a hard look at your unique needs

You can also read information about insuring your condo and renters insurance. Look at details about home insurance for a second home by clicking here or find out how much home insurance you need.

Get a quote online, call Plymouth Rock in New Jersey at 833-857-5848 or find a local agent to see how you can save on home insurance for a second home in New Jersey and if you have any questions you can visit our Contact Us page.