Personal Lines
Homeowners Insurance
Your home is probably your largest asset. It deserves more than a policy purchased in 15 minutes.
Four Jobs. One Policy. The Details Are What Matter.
A homeowners insurance policy has four main jobs: repair or replace your home if it's damaged, replace your personal belongings if they're stolen or destroyed, pay for a place to stay if your home is uninhabitable after a covered loss, and protect your assets if someone is injured on your property. Most homeowners policies do all four of those things, but how well they do them depends entirely on the coverage limits, deductibles, and endorsements that were chosen when the policy was written. And those details are where we spend most of our time in a homeowners review.
The single most common problem we find when reviewing an existing homeowners policy is underinsurance on the dwelling. Rebuilding costs have increased significantly over the past several years due to labor and material inflation. A policy that was set at replacement cost three years ago may be $50,000 to $150,000 short of what it would actually cost to rebuild today. When there's a total loss, that gap doesn't come from the insurance company. It comes from you.
Your liability exposure as a homeowner is also frequently underestimated. Standard policies typically include $100,000 to $300,000 in personal liability, which can be consumed by a single serious injury claim. A pool, a trampoline, a dog, or a large gathering at your property all increase that exposure. We review liability limits alongside a personal umbrella policy to make sure the two work together correctly.
Key Facts
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Four coverages in one policy: Dwelling, personal property, loss of use, and personal liability are the core components of every homeowners policy.
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Replacement cost vs. actual cash value is critical: ACV pays depreciated value. Replacement cost pays what it actually costs to rebuild or replace today.
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Standard policy excludes flood and earthquake: Both require separate policies. Don't assume they're included.
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Scheduled endorsements for valuables: Jewelry, fine art, collectibles, and firearms above standard limits need to be scheduled separately to be fully covered.
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Liability is separate from property coverage: Your liability limit is independent of your dwelling coverage and should be reviewed alongside a personal umbrella.
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NJ average premium: Roughly $1,200 per year, though actual cost depends on your location, home age, coverage limits, and claims history.
Dwelling Repair or Rebuild
If your home is damaged or destroyed by a covered peril such as fire, wind, hail, or lightning, your dwelling coverage pays to repair or rebuild the structure up to your policy limit.
Personal Property
Furniture, clothing, electronics, and other personal belongings are covered when they're stolen or destroyed by a covered peril, both inside the home and, with limitations, away from it.
Additional Living Expenses
If a covered loss makes your home temporarily uninhabitable, your policy pays for hotel stays, rental housing, and additional living costs while repairs are being made.
Personal Liability
If someone is injured on your property or you're held responsible for property damage, your liability coverage pays for legal defense and any resulting judgment up to your policy limit.
Medical Payments to Others
Pays reasonable medical expenses for guests injured on your property, regardless of fault, helping to resolve minor incidents before they become legal claims.
Detached Structures
Detached garages, fences, sheds, and other structures on your property are typically covered at 10% of your dwelling limit under the "other structures" portion of your policy.
Water Damage from Internal Sources
Sudden and accidental water damage from a burst pipe, failed appliance, or internal plumbing event is covered. This is distinct from flooding, which requires a separate policy.
Personal Property Away from Home
A limited portion of your personal property coverage applies to belongings stolen or damaged while you're traveling or away from home, including items in your car or a hotel room.
What Flood Insurance Doesn't Cover
A homeowners policy is broad, but it has specific exclusions that catch people off guard at claim time. These are the most important ones to know before you need to use your policy.
Flooding
Flooding
Flooding is excluded from every standard homeowners policy, regardless of the source. If water enters your home from outside, you need a separate flood insurance policy. This is a critical gap for homeowners anywhere near the Shore.
Earthquake
Earthquake damage isn't covered under a standard homeowners policy. It requires a separate earthquake endorsement or a standalone policy. While not as pressing in New Jersey as in other states, it's worth knowing the policy doesn't include it.
Normal Wear and Tear
Homeowners insurance covers sudden, accidental losses. Gradual deterioration, aging, and maintenance issues are not covered. If a roof fails because it wasn't maintained, the policy won't pay for it.
High-Value Jewelry, Art, and Collectibles Above Standard Limits
Most homeowners policies cap coverage on jewelry at $1,500 to $2,500. If you have engagement rings, fine jewelry, collectibles, or artwork that exceed those thresholds, you need a scheduled personal property endorsement to cover the full value.
Home-Based Business Property and Liability
Business equipment and inventory kept at home are covered only to minimal limits under a personal policy. Business liability arising from clients visiting your home is generally excluded. A home-based business endorsement or separate commercial policy is needed.
Vacant Home Losses After 60 Days
Most homeowners policies exclude or significantly restrict coverage once a home has been vacant for more than 30 to 60 days. If you're traveling, have a second home, or a property between tenants, ask about a vacant home endorsement.
Schedule a Coverage Review
Most homeowners haven't had a real policy review in years. Costs have changed, risks have changed, and your coverage may not have kept up. Let's fix that.