Homeowners Insurance in Princeton, NJ
Experts break down homeowners insurance costs, coverage, companies, and more in Princeton, NJ.
Princeton, NJ is a commercial hub in central New Jersey and a commuter community for people who work in New York City. It is the home of Princeton University and over 30,000 residents.
In Princeton, NJ, homeowners must protect their greatest asset: their homes. If you own a home in Princeton, you can have peace of mind by purchasing a quality, affordable homeowners insurance policy that helps you recover when your home or belongings are damaged.
A local independent insurance agent can help you shop for the best homeowners insurance in Princeton, NJ. Independent agents can obtain competitive quotes, answer your questions, and ensure that you get the coverage that best fits your needs and budget.
What Is Homeowners Insurance?
Homeowners insurance protects you from the costs of property damage. If your home is damaged or destroyed by a fire, storm, tornado, burglary, or some other catastrophic event, your Princeton, NJ homeowners insurance should cover repairing or rebuilding your home and replacing damaged possessions.
Homeowners insurance also provides liability insurance, protecting you if you or a family member is sued for negligence.
What Does Homeowners Insurance Cover in Princeton, NJ?
A typical homeowners insurance policy includes the following types of property coverage:
- Dwelling coverage: Pays to repair or replace your damaged home and will even pay out the value of your home if it is a total loss.
- Contents coverage: Pays for damage to your insured personal property, such as furniture, clothing, artwork, etc.
- Other structures coverage: Covers any detached structures on your property (e.g., sheds, fences, detached garages).
- Loss of use coverage: Pays for additional living expenses (hotel bills, food, etc.) if you are forced to live somewhere else while your home is being repaired.
It’s important to have sufficient dwelling coverage to repair or rebuild your house and enough contents coverage to repair or replace all of your personal property fully.
Homeowners insurance in Princeton, NJ also includes homeowners liability coverage. It protects you when someone claims you have caused an injury or property damage. It covers the injured party's expenses (e.g., medical bills, property repairs) and your legal fees if you're sued. After a lawsuit, it can even cover financial settlements or court-ordered judgments.
What Isn't Covered by Homeowners Insurance in Princeton, NJ?
Homeowners insurance in Princeton, NJ covers many problems homeowners can encounter. But keep in mind that homeowners insurance does not cover flood damage.
Flooding can be a problem in some areas of New Jersey. It is one of the top five risks for homeowners in the state, and Princeton has a moderate flood risk. There are 365 properties in Princeton with a greater than 26% chance of being severely affected by flooding over the next 30 years.
If your home has any flood risk, it's good to discuss with your insurance agent purchasing flood insurance to supplement your home insurance policy.
When you buy a flood insurance policy through the National Flood Insurance Program (NFIP), you can affordably get up to $250,000 in structural coverage and $100,000 in contents coverage for your home.
The liability coverage in your homeowners insurance policy in Princeton, NJ also has limitations. If you hurt someone because of an intentional act, your liability coverage will not cover you. You can find all the exclusions to your liability coverage in your policy documents.
And remember, almost all homeowners insurance policies in Princeton, NJ will exclude coverage for property damage caused by the following:
- Ordinance or law (e.g., demolition or construction required to bring your house up to code)
- Earth movement (e.g., earthquakes, sinkholes, landslides)
- Water damage due to floods, sewer back-ups, and water that seeps through the foundation
- Power failure
- Nuclear hazard
- Intentional acts
- Governmental action (e.g., destruction, confiscation, or seizure of covered property by any governmental or public authority)
- Loss to property resulting from faulty zoning, bad repair or workmanship, faulty construction materials, and defective maintenance.
It's essential to understand your policy's exclusions when purchasing your homeowners insurance in Princeton, NJ.
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How Much Does Homeowners Insurance Cost in Princeton, NJ?
New Jersey is the 23rd most expensive state for home insurance. The average cost of homeowners insurance in New Jersey is a little bit lower than the national average.
- National average yearly premium: $1,211
- New Jersey average yearly premium: $1,192
Of course, your homeowners insurance premiums will be more or less than the average for your city. And you can still shop around for the best local rates.
It’s important to know that your insurance premiums are calculated according to your exact coverage needs and your home's unique characteristics and risk factors.
The age, size, value, and materials used to build your home help insurance companies determine how much it would cost to replace it if it were severely damaged or destroyed. Insurance companies also evaluate your city's crime rate and weather risks, your claims history, and even your credit score to determine your home insurance premium.
Many policyholders qualify for homeowners insurance discounts, such as home insurance bundles. Consider bundling your car insurance or life insurance with your home insurance to get the best rates.
What Common Disasters and Claims Are Covered by Homeowners Insurance in Princeton, NJ?
Princeton, NJ, homeowners may be affected by various disasters and other reasons to file an insurance claim. New Jersey has experienced 53 federally declared disasters since 1953. The top five property risks for homeowners in New Jersey are:
- Severe storms and lightning damage
- Hurricanes and tropical storms
- Flooding and water damage
- Heavy snow
- Burglary and other property crimes
Unlike flood damage, burglary and other property crimes are covered by home insurance in Princeton, NJ. If you experience a break-in, burglary, or other property crime, your home insurance can help you recover from your loss.
Fortunately for New Jersey homeowners, the statewide burglary rate is less than the national average:
- Number of burglaries per 1,000 people in the US: 3.76
- Number of burglaries per 1,000 people in New Jersey: 2.16
A reliable homeowners insurance policy can quickly help you get back on your feet after a burglary. It helps you pay for damage to your home, as well as repairing or replacing stolen or damaged possessions.
Cheap Homeowners Insurance in Princeton, NJ
Finding the best rate on home insurance in Princeton, NJ is important for everyone. But it's important to understand that cheapest is not always the best.
The best way to approach your search for homeowners insurance is to shop around, not just for the cheapest policy, but also for the policy that offers the best coverage to protect your home and fits your budget.
One way to ensure adequate coverage is to learn how your homeowners insurance policy in Princeton, NJ reimburses you for claims. If you have an actual cash value policy, it will pay claims based on the amount needed to replace or rebuild lost or damaged property after deducting depreciation. That means the policy will reimburse you for what your items are worth now, not what it would cost to purchase a comparable item at today's prices.
Actual cash value policies are generally the least costly option. But in this case, cheaper is not necessarily better. If you have a loss, you may not be able to rebuild your home or replace your belongings sufficiently.
On the other hand, replacement cost policies pay the cost of rebuilding or repairing your home or replacing your possessions without deducting depreciation. If you have replacement cost coverage, you should be able to repair or rebuild using the same or similar materials at today's prices.
Some insurers offer guaranteed replacement cost coverage, a costlier option that protects you from sudden increases in building costs. Guaranteed replacement cost policies pay whatever it costs to rebuild your home as it was before a fire or other disaster, even if it exceeds the policy limit.
Discuss these issues with your independent insurance agent before deciding which policy offers the best value for your needs and budget.
What Are the Best Homeowners Insurance Companies in Princeton, NJ?
Finding the best homeowners insurance companies in New Jersey can be simple. A local independent insurance agent can help you get home insurance quotes from multiple insurance companies so that you can select the best policy for your needs and budget.
How Can Independent Insurance Agents Help Me Find the Best Homeowners Insurance in Princeton, NJ?
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice.
What’s more, your agent will be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
Contact an agent today for a free, no-obligation consultation.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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