New Jersey Home Insurance

While the hurricane season in the Northeast regularly threatens homes and businesses, Superstorm Sandy has had a sizable effect on both the home sales market and homeowners insurance prices in New Jersey. While the state averages have of course been affected, families further inland and in other regions of the state shouldn’t see drastic increases in their costs. Nonetheless, it’s important to understand how homeowners insurance works and the different types of policies available on the market. Read on to learn more about the various aspects of homeowners insurance in New Jersey.

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Stats in Your State

Just as various factors affect the housing market, homeowners insurance rates fluctuate based on a number of different variables. The graphs below illustrate the housing market, home insurance costs, as well as renters insurance premiums and other factors in New Jersey over the years.

Homeowner Insurance Premiums

Between 2001 and 2008, New Jersey home insurance premiums remained steadily below the national average, as indicated in the graph. Along with the housing market, insurance premiums spiked in 2007 before taking a sharp downturn in 2008.

Renter Insurance Premiums

New Jersey renters insurance premiums, similar to their homeowners counterparts, have remained steadily below the national average across the early 2000’s, following by a sharp drop in 2008. While the fluctuation may not be significant in terms of dollars per policyholder, it reflects a notable overall market drop.

Existing Home Sales

Similar to the rest of the country, home sales in New Jersey peaked in the middle of the decade along with the housing bubble, and 2004 and 2005 saw the highest sale rates per year. Yearly home sales plummeted from 188,000 in 2004 to 112,000 in 2008 across the state.

Flood Insurance in Region

New Jersey’s rolling hills and rivers contribute to a high number of yearly flood claims. In the year between October 2011 and September 2012, New Jersey saw roughly 22,000 individual claimants with $649 million in damages due to flooding, putting New Jersey significantly ahead of neighboring states in terms of claimants and cost of damages.

Homes Built

The age of existing homes in New Jersey illustrates a steady population growth throughout the 20th century and beyond. Obviously New Jersey’s proximity to New York has made it a steady place for people to settle down just outside the city, and has grown in its own right into a densely populated state.

Rules in Your State

The New Jersey legal code and regulations address a variety of different aspects of insurance and how it must be conducted. The links and resources below provide starting points for consumers to dig deeper into the state’s legislation around the industry.

Insurance Division: Legislative and Regulatory AffairsThe Insurance Division and Insurance Commissioner regulate the insurers in New Jersey and regularly update or introduce new legislation to regulate the field. The links below are some notable statutes that consumers will find useful when considering if they’ve been treated fairly by their insurer.

Representatives & Resources in Your State

Understanding your insurance policy and how it works can be a difficult task on your own, so we’ve put together a list of some major resources you’ll find useful in your quest for knowledge. The Insurance Division provides a wealth of information and guidance for consumers to understand how home insurance works in New Jersey.

New Jersey Department of Banking & Insurance: Insurance Division
NJ Department of Banking and Insurance
20 West State Street
Trenton, NJ 08625
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Contact Information
Consumer Protection Services
Homeowner’s Insurance Information
Here you’ll find various pamphlets and guides on understanding different types of home insurance in New Jersey.
Property and Casualty Insurance Information
Property and casualty claims typically arise due to auto accidents and accidents on personal property. As such, they apply both to homeowners insurance and to car insurance.

Storm Sandy Insurance Mediation
The Insurance Division has set up a mediation unit for victims of Sandy to have their insurers pay and compensate them fairly for their damages, easing the pressure on both insurers and consumers to get what’s fairly owed.

Federal Emergency Management Agency: Region 2
Hurricanes and flooding are two constant threats each year for New Jersey residents, and the Federal Emergency Management Association has come to know New Jersey well after Sandy’s impact on the coast and across the state. The Region 2 contact information and offices are listed at the above link.