What is Homeowners Insurance?

A homeowner’s house is often the most valuable asset they own. Homeowners throughout New Jersey have tens and hundreds of thousands, sometimes millions, of dollars invested in their houses -- and they can ill afford to lose their investment. Homeowners insurance helps protect a homeowner’s financial investment in their house.

Homeowners insurance is designed to help protect policyholders’ homes, but that’s often not all they cover. Most home insurance policies are “package policies” that combine several coverages into one, convenient policy. A policy might include:

  • Dwelling Coverage, which is for the primary home on a policyholder’s property
  • Personal Property Coverage, which is for the personal possessions that a policyholder has
  • Liability Coverage, which provides protection in case the policyholder is found at fault for a covered incident that caused damage or injury

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The exact mix of coverages varies from one policy to another, but some form of these coverages are found in most home insurance policies. Each policy's paperwork will detail exactly what’s covered and what's not.

What Other Coverages Might a Home Insurance Policy Offer?

Home insurance policies sometimes offer other coverages in addition to the three above-listed common coverages. Some other optional coverages that a policy may have are:

  • Vacant Property Coverage, which might be needed if a property is vacant for an extended period
  • Disasters Coverage, which usually extends coverage to disasters that otherwise wouldn’t be covered (e.g. earthquakes or floods)
  • Loss of Use Coverage, which helps a policyholder pay their living expenses if a covered incident renders their home uninhabitable
  • Other Structure Coverage, which is sometimes necessary if a property has secondary structures (e.g. a fence, detached garage, or shed)

Who in New Jersey Should Have Homeowners Insurance?

Homeowners who have a mortgage or other loans against their house usually are required by their lending institution to carry a home insurance policy. Lenders have this requirement so that their financial investment in a house will still be protected if the house is destroyed before everything is paid off.

Homeowners who own their house outright may not be required to have home insurance, but most still choose to insure their home. Few homeowners could afford to rebuild their home or buy a new one with cash if theirs was lost in a disaster.

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How Can Homeowners Find a Home Insurance Policy?

Homeowners who are looking for a homeowners insurance policy that provides great coverage for an affordable price ought to get in touch with an independent insurance agent who’s licensed in New Jersey. A licensed agent will have the expertise to help homeowners review policies and understand their coverages. An independent agent will be able to compare policies from multiple insurers to find one that offers robust coverages at a great rate.

Meet Your Industry Specialist

Jim Hickey

Mr. Hickey is a Partner and the President of Personal Lines. He was the President of Links Insurance Services, which he started in 2001. Jim grew Links Insurance to 40 employees by the time it became a division of World Insurance Associates in 2019.

Jim Hickey has been a top commercial and personal lines producer for the past 15 years and has guided the company to 18 years of year-over-year growth.

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