Around 36% of all homes in New Jersey are occupied by renters. Whether you are a young professional renting a studio apartment in Newark or a newlywed leasing a house in Ridgewood, it is a good idea to cover your property and protect your finances with a reliable renters insurance policy.
When you are looking for the right coverage, a local independent agent can help. These agents do not work for a particular insurance company, so they are able to obtain customized quotes from a few of the best renters insurance companies in New Jersey. Find an independent insurance agent near you to learn more.
Is Renters Insurance Required in New Jersey?
Renters insurance is not required by law. However, sometimes landlords will require their tenants to carry it as one of the terms of their lease. In most cases, though, this coverage is fully optional.
Because it is optional, some people think that it is not worth looking into.
In New Jersey, the average cost of rent is $1,334 a month, and an estimated 46.6% of tenants spend more than 30% of their income on rent and utilities, so it is easy to understand why a lot of residents in this state balk at the idea of adding to their housing costs by buying renters insurance.
What many do not realize is that a good renters insurance policy can provide you with a wide range of coverage at a surprisingly affordable price.
How Much Does Renters Insurance Cost in New Jersey?
The average renters insurance policy in New Jersey costs just $165 a year. At less than $14 a month, that is a very reasonable price to pay for the coverage a policy can provide. Factors that can make your actual cost higher or lower than this average amount include:
- The estimated value of your personal property
- The amount of liability coverage you want to purchase
- The crime rate and weather risks where your home is located
- The size of your deductible
- Whether you are bundling your renters insurance with another policy like car insurance or life insurance
When you take the time to compare quotes from a few different insurance companies, you can rest assured that you are choosing a policy that provides all the coverage you want at the most competitive price. Independent agents make comparison shopping easy.
What Does Renters Insurance Cover in New Jersey?
Renters insurance can protect your finances in a few different ways. You can expect your policy to provide you with:
- Coverage for your personal property: This is called contents coverage. It can cover repair or replacement costs if your belongings are lost or damaged by a covered event. Covered hazards include:
- Property crimes, including burglary and vandalism
- Fires, including damage caused by flames, smoke, and firefighting efforts
- Severe weather events, including heavy snows, prolonged freezing temperatures, high winds, hail, thunderstorms, lightning, tropical storms, and hurricanes (but not the flooding they may cause)
- Coverage against liability lawsuits: This is called renters liability insurance. It can cover your legal costs and financial obligations if you or someone in your household is responsible for unintentional injuries, property damage, financial loss, or other harm to others.
- Coverage against displacement: This is called loss of use insurance. It can cover your temporary living expenses if a covered event like a fire leaves your rental home uninhabitable and you must seek alternate accommodations while your landlord brings the property back up to code.
When you are deciding how much property coverage you need, be sure to consider the value of all your belongings, including furniture, electronics, clothing, jewelry, and even kitchenware.
You will want to be sure that your coverage limits are high enough to enable you to replace everything in the event of a total loss. You will have the option to purchase either replacement-cost or actual-cash-value coverage for your belongings.
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What about Coverage against Floods in New Jersey?
As mentioned above, renters insurance does not cover against flood damage. If your neighborhood is impacted by a flash flood, your landlord will be responsible for covering any damage to your home, but not to your personal property.
If you live in a second-floor or higher apartment, you probably don’t have anything to worry about. However, if you are renting a ground-floor apartment or a house in a flood-prone area, you may be wondering what your options are.
The only way you can have coverage against floods is if you supplement your renters insurance policy with flood insurance. The National Flood Insurance Program (NFIP), a program administered by FEMA, offers guaranteed flood coverage to anyone who wants it.
Because you will only need to purchase contents coverage, you should be able to get all the coverage you need at a very affordable price.
How Can an Independent Agent in New Jersey Help Me Find the Best Renters Insurance?
When you are shopping for a good renters insurance policy, a local independent agent can help. These agents can answer your coverage-related questions and can assist you with finding a policy that meets your coverage and budgetary needs. Best of all, consulting an independent agent is free.
Arrange an obligation-free conversation with an independent insurance agent near you today, and you can soon be comparing customized quotes from some of the best renters insurance companies in New Jersey.
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