Factors That Impact Your Home Insurance Rates

If you are like most NJ homeowners, your house is your largest asset. The situation makes understanding the factors that impact your NJ Home Insurance rates critical information. Besides being the largest asset, according to Zillow, single-family homes are also a growing investment. Zillow finds New Jersey home values up 3.8% over the last year and predicts a 4.5% rise next year.

A home for most families is more than an outsized investment. It’s a special place where families grow, create memories, and often stay together for generations. We’ll review the many reasons beyond sentimentality and minimum mortgage lender requirements to properly insure a home against the unwelcome and unforeseen risks homeowners face. 

Unfortunately, it’s too late after a loss to learn if a homeowner’s insurance policy has gaps. Many owners face problems because they don’t know how to figure how much and what coverages they need for their home, which given the complexities involved, is understandable. 

Homeowner insurance is complicated, and without professional advice, things can go wrong. Poor decisions and bad advice are the cause of homeowners being significantly underinsured in the event of a catastrophe or the cause of them paying too much for unnecessary coverage. 

There are risk factors some homeowners don’t realize they face because they are not always obvious. For example, flood insurance is not mandatory for homeowners in New Jersey, but it may be a requirement to qualify for a mortgage if you live in an area at high risk of flooding. However, in some moderate-risk cases, mortgage lender guidelines do not require flood insurance, although it is often highly advisable.

Here is an example of where the best guidance is priceless. Your insurance adviser’s research and experience will explain the risks of flooding or earthquake damage in moderate zones that are not covered under a typical homeowner policy. In many cases, even though lenders do not always require it, having sufficient coverage avoids financial disaster. With all the facts, you can make smart, informed decisions about the best way to insure your home adequately.

As a NJ homeowner, you will benefit from your insurance professional’s expertise in other ways. By working together, you gain a working knowledge of all the factors that affect your NJ Home Insurance. Though not inclusive, here is a list of crucial factors that affect your NJ home insurance rates: 

• Local crime rate.
• The square footage of the home.
• Whether your home is covered with replacement cost insurance. 
• Construction costs, including materials and features, in your area.
• The home’s age, condition, and type of construction.
• How a home’s location affects its vulnerability to natural disasters such as hurricanes, hailstorms, and tornadoes.
• The insurance industry’s desire to write business in your area.
• Coastal windstorm exposure. Wind damage from Superstorm Sandy was a major cause of loss, helping make it among the costliest in US history. 
• Policy bundle discounts for home, auto, and life insurance.
• Professionally installed and maintained security systems.

These things are just a few of the many factors to consider and evaluate for homeowners. Your experienced insurance professional will provide a comprehensive assessment of the risks you face as a homeowner, help you determine the coverages you need, and give you options to acquire proper coverage at competitive rates.  

About Dickstein Associates Agency

Dickstein Associates Agency has distinguished itself as a leading provider of personal and business insurance in the tri-state area for over 55 years. We pride ourselves on being advocates for our clients and providing them with quality and affordable coverages. As an independent insurance agency, we partner with various carriers, allowing for flexible and unbiased coverage for each client’s unique circumstances. For more information on how you can leverage all of your insurance to work best for you, and how we can secure the best insurance in the marketplace based on your specific needs, contact us today at (800) 862-6662.