Looking for Homeowners Insurance in New Jersey? Consider This…

It’s true—homeowners insurance in New Jersey can be expensive, and budget-conscious property owners sometimes try to reduce their costs by choosing the cheapest insurance options available.  If you’re looking to slash the cost of home insurance, it’s important to remember two areas where skimping on insurance premiums can result in an expensive mistake:

• Guaranteed replacement value insurance.  Homeowners insurance policies offer different levels of protection: actual cash value, replacement cost or guaranteed replacement cost.  Insuring for actual cash value or for replacement cost does not provide you with protection from increases in construction costs. However, guaranteed replacement cost insurance provides coverage regardless of the rebuilding cost. Guaranteed replacement value insurance is a more expensive option, but offers better financial protection if your home is destroyed by a disastrous event.
• Policy endorsements.  Your homeowners insurance in New Jersey may be amended or customized to provide special coverage for items that are costly to replace. If you own expensive items like antiques, jewelry or artworks, you should consider adding endorsements to your standard home insurance policy so that you can claim their full value if they are lost or damaged. In order to obtain endorsement, you will need to provide the insurer with proof of ownership and proof of the value of the items being insured. Additional policy endorsements can be considered for risks such as flooding and earthquake coverage as well.

It’s important to consider you unique property while shopping around for homeowners insurance. New Jersey residents should be mindful of the difference between saving money and skimping on critical coverages. Your home is something you worked hard for, so don’t allow it to be inadequately protected.