In a state with some of the highest health and auto insurance premiums in the nation, New Jersey homeowners often pay relatively low premiums to protect their real estate investments in comparison to the rest of the nation. According to the National Association of Insurance Commissioners (NAIC), the average New Jersey homeowners insurance premiums continuously hover under a thousand dollars. The average Trenton resident will pay a premium between eight and nine hundred dollars to protect their home and possessions from theft, damage and other hazards.
When it comes to New Jersey homeowners insurance, not all policies are created equal. There is a wide array of coverage options, risk exposures and other considerations which will ultimately effect the scope and price of a homeowners policy. There are a few main factors that insurance providers will take into account which help determine the cost of a premium.
- Amount and types of coverage you choose will highly impact your premium. Policies established with high limits and low deductibles will cost the policy holder more upfront, but yield greater protection in the event of a calamity. A higher deductible will often help drop premium rates, however the policyholder’s out-of-pocket expenses will be much higher should a claim ever need to be filed. There are also a number of policy additions like excess liability, high value artifacts and flood coverage which will increase the amount of coverage afforded to a homeowner but also affect prices.
- Your home’s construction will also affect the price of a policy. For example, brick houses being more durable, are often less expensive than wood frame dwellings to insure against damages. Building materials have diverse strengths, weaknesses, durability and susceptibility to hazards such as fire, wind and flood. Houses built with more durable and sustainable materials are often present less of a risk for insurers and are therefore cheaper to insure.
- Age is also a consideration factor when insurers draft a policy. New homes will often qualify for discounted rates because the structure and materials are fresh and presumably current with all safety standards. Older homes may require special coverage additions or renovations to qualify for some insurance programs.
- Many insurance providers will extend discounts to clients who insure all of their personal property through their company, which can also help reduce the premiums you face as a homeowner in New Jersey.
At Tri-State Insurance Agency we offer a vast selection of Personal Insurance solutions to help protect all your assets. Our professional staff will work with you to make sure that the homeowner’s policy protecting you and your New Jersey residence. We can help addresses the concerns that matter most to you. Give us a call today at (888) 990-0526 for more information.