You live in the Garden State. To you, all NJ home owner insurance policies are the same. To the insurance companies, however, this is not the case at all. Two identical houses may actually require two very different policies.
Take the example of two NJ homes, one at the eastern corner of Woodland Drive in Lakewood, NJ and the other, located smack in the middle of River Terrace in Toms River, NJ.
Two Homes, The Insurance Company’s Perspective:
1) Home on Woodland Drive, Lakewood, NJ
Distinctive Characteristics –
• Owner occupied
• Well taken care of
• Less of a damage risk
2) Home on River Terrace, Toms River, NJ
Distinctive Characteristics –
• Tenant occupied
• May not be as well maintained
• More of a damage risk
Differing Home Situations, Differing Homeowner Insurance Policies
The fact that Lakewood is surrounded by the beautiful man-made Lake Carasaljo while Toms River is more of an industrialized center and home to a large court house (including a jail), has nothing to do with any NJ insurance company’s viewpoint on differing home insurance plans. The crux of the matter is underscored by those who live within the home. As indicated by the comparative points above, the industry does not see an owner-occupied home as much as a liability risk as the tenant occupied home.
To prove a point, there are some insurance companies that don’t even extend home protection for the latter. On the other hand, some insurance firms do focus specifically on this type of coverage. The bottom line for the insurance consumer is that there needs to be an awareness that substantial differences between homes do exist.
Example of Coverage Differences
1) The owner occupied home on Woodland Drive has homeowner insurance that includes coverage for home contents
2) The investment property home that is tenant occupied on River Terrace has a homeowner policy that does not include home contents. To be protected, the tenants themselves need to procure a renter’s home policy.
How Can a Landlord or Tenant Ensure Proper Coverage?
The very first step in acquiring adequate insurance protection in the Garden State is to disclose all particulars about your owned or rented home to a qualified and experienced, local insurance agent. The insurance agent should then educate you about your specific needs in accordance with your unique situation. Then, you should be given a choice of appropriate coverage plans by the leading insurance companies servicing your locality. With the agent’s guidance you should be able to discern an appropriately protective policy!
PRIME Insurance services NJ homeowners,as well as homeowners across the country. Partnered with some of the most prestigious insurance companies nation-wide, we get you coverage that meets your needs and quotes that are competitively priced. Visit us at http://www.primeins.com/ to view our line of insurance products, get fast quotes, read our educational blogs and get the service you want!
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