Renters insurance in New Jersey is a residential insurance policy type that reimburses a tenant if their property is damaged or they suffer the loss of personal property in their rented property due to theft, fire, or vandalism. With the average monthly cost of $15, renters insurance (also known as: HO-4 renters insurance) covers property damage, destruction, or loss, temporary living costs, and liability protection for a situation when a third party is injured on the renter’s property.
Around 36% of the 4 million New Jersey housing units are occupied by renters who need renters insurance. To get NJ renters insurance quotes - speak with a New Jersey-licensed insurance agent.
Renters insurance in New Jersey protects a renter by providing coverage for their personal property against loss or damage by perils listed in the insurance policy. These perils include certain natural disasters, vandalism, fire, and theft. Renters insurance also protects the tenant from potential exposure to liability. Damage or loss of property and liability can lead to out-of-pocket expenses to the renter, but renters insurance can prevent a tenant from paying such costs.
Having renters insurance in New Jersey protects against unpredictable events in a rented apartment, single home, or condo. The insurance policy that landlords have on their property (landlord insurance) does not extend coverage to the renters’ personal property and liability as it only provides coverage for the structure of the building. Landlord’s may ask the renter to add the landlord as additional insured on renters insurance to create a renters insurance with additional insured scenario.
Renters insurance covers personal property, temporary loss of use, and liability protection. Personal property coverage includes loss or damage of personal belongings. Temporary loss of use covers the expenses incurred if you have to stay away from your damaged or destroyed rented home due to a covered event for some time. Liability protection covers claims made due to injury or property damage sustained by third parties on your rented property, compensation awarded by the court, and legal fees (if such third parties decide to sue you). Your renters insurance will pay medical expenses and lost wages of the injured third party.
Renters insurance provides relatively inexpensive protection for occupants of rented apartments, houses, townhouses, or condominiums. The average premium for renters insurance in NJ is between $15 and $30 per month, depending on the amount of coverage. This average cost of renters insurance in NJ is at par with the national average. Renters insurance pays for personal liability like the cost of defending you in court against certain lawsuits, paying the medical bills of people injured at your rented property, or some away from your apartment. For example, if your dog bites someone while you are on a walk, your renters insurance policy can pay for all liability claims made after such an incident. It can also pay for additional living expenses (costs above your usual food, accommodation, and other essential needs) if you need to move out temporarily from your rented apartment due to damage by a covered peril.
Yes, renters insurance coverage is provided per person. The policy covers the person named on the policy. It can also extend coverage to the members of the policyholder’s family, like spouses and children. While you may be sharing a rented dorm room or apartment, not sharing renters insurance with roommates is advisable and offers several benefits, including:
Below are some common questions renters with roommates ask:
Note: Make sure to read your policy and understand it well. Speak with a licensed residential property insurance agent or your insurer’s representative to discuss your policy details.
There are two main types of renters insurance in NJ. These are the actual cash value (ACV) and replacement cost value (RCV) insurance policies. Actual cash value policies (also known as the Current Market Value policies) consider depreciation, which is the reduction in the value of your property due to use and age. For example, your laptop purchased for $1,200 seven years ago will not cost the same today due to use and age, and replacing it if stolen with an ACV policy will pay you less than the purchase price. On the other hand, replacement cost value policies (replacement value renters insurance) pay the actual cost of your property with no deductions due to depreciation, up to the limit of your renters insurance policy. This means that if the same laptop is stolen but insured with an RCV policy, the policy will ensure you get paid enough to replace the laptop with a new one at the current market price. Replacement cost value insurance policies cost about 10% more than actual value insurance policies but can be worth the additional costs.
Due to frequent relocation, a high number of service men and women rent their property rather than own. As service men and women who stay in the barracks, bases, military dorms, rental property, or apartment in New Jersey, you also need to protect your personal belongings from perils. Renters insurance is an affordable way to do this while on deployment or at home. Members of the armed forces will benefit from personal property and liability coverage. You also have access to coverage for your military gear and uniforms without the need to pay a deductible. For military personnel who re-deploy frequently, renters insurance offers the flexibility of the protection of your personal property in transit, storage, or during your shipment up to the renters coverage limits provided in your policy. Note that military renters insurance is not provided by the military but by your local private insurer.
You need to have a renters insurance policy if you stay in a rented condo. Your landlord insurance and condo owners association insurance does not provide coverage for your personal property within the condo. Your landlord insurance covers the apartment while your condo association insurance covers your shared services and public areas within your condominium. Condo renters insurance will provide coverage to protect your property from listed perils and provide loss of use, medical payments to others, and personal liability coverage.
People often ask; do I need renters insurance if my landlord has insurance? The answer is yes. You need renters insurance in NJ because your landlord's insurance does not cover your personal property. Is renters insurance mandatory in New Jersey? New Jersey law does not require tenants in the state to have renters insurance, but having one will help to pay to repair or replace your possessions if they are damaged or lost to a covered event. It also pays for additional living expenses while the apartment is being repaired. Also, in some circumstances, landlords require it from their tenants. The primary justification why landlords require renters insurance is to minimize their risks. Speak to a New Jersey residential insurance agent with expertise in renters insurance to obtain a renters insurance quote.
You need renters insurance in New Jersey to protect yourself financially against potential disasters at your rented property. The top four reasons why renters insurance claims are filed are:
Around 10 thousand burglaries happen in New Jersey every year, and if someone breaks into your rental home and steals your stuff, only renters insurance will give you protection. If the thieves break the window or the door of your rental dwelling, your landlord’s property insurance will take care of that - since that is considered part of the structure. But if the criminal damages your property, and for example, spray paints your couch - that would be covered as vandalism under your renters policy, since it is your property.
On average, more than one structure fire is reported in New Jersey every hour. The most common causes of home fires are: electrical fires, cooking, and specifically space heaters. In case of a fire, the landlord’s insurance will cover their rental property, but your property must be covered by your own renters insurance. In 2021, New Jersey fires resulted in at least 54 home fire fatalities.
In a 2020 survey 20.1% of New Jersey respondents aged 45 and older said that they have fallen in the last 12 months, with around half of those falls resulting in injury. If anyone slips and falls in your home or trips on your rug and gets hurt - renters insurance will cover the injured person and your liability for it.
Another bodily injury liability example: If a fight breaks out at your rental residence, your renters liability insurance will cover the damages of the injured parties, as long as the insured was not the one who started the fight.
If your dog bites a visitor, you are liable for it. If you have renters insurance, it will cover the medical and legal costs up to its limit - typically $100,000 - $300,000. (Note: Renters insurance does not cover your pet’s health issues that may come as a result of a loss. Pet insurance covers your pet’s medical.)
Renters insurance also includes additional living expense coverage which pays for the expenses you may incur if you have to move out of your property, temporarily, including lodging and feeding, due to damage by a covered peril.
If a drain in your rented home malfunctions and the water overflows inside the home, damaging your property - you are covered.
Additionally, renters insurance can provide you with no-fault medical coverage , which pays for the injury of a visitor or neighbor in your rented home even though you are not liable.
How much coverage you need requires you to take an inventory of your personal property and consider possible liabilities. Making a list of your personal items will help you to easily determine the cost of replacing them if you suffer damage from unexpected events. Along with the cost of replacing the property you own, you also need to determine an amount for your liability protection that is adequate to protect your net worth and assets in case someone files a claim or a lawsuit against you. Typical renters insurance in NJ can be purchased with a liability limit of $300,000. If you need more coverage and your insurer does not offer such high limits, you can always get an umbrella liability policy for as much coverage as needed.
As a New Jersey resident, you can get renters insurance for between $9 and $30 per month. Most renters in NJ pay $12-$18 per month for their coverage. The price fluctuates primarily based on the location of the property, the value of the insured property, and some other factors. Save money on renters insurance by bundling it with your auto insurance.
Some insurance companies will offer you discounts such as the safe home discount if you install a smoke alarm or a non-smoker discount for non-smokers. You may need additional coverage, called endorsements, beyond the standard renters insurance for your other potential needs. Endorsements provide coverage for items like expensive jewelry, family heirlooms, furs, fine arts, silverware, and collectibles. How much renters insurance you need is the amount of coverage that is enough to replace all your personal belongings if you lose them due to a covered peril.
Talk to a New Jersey-licensed P&C insurance agent who can quote renters insurance. The agent can guide you on choosing the most suitable and affordable renters insurance for your unique needs and provide you a renters insurance quote. (The agent’s help does not cost you anything)
Renters insurance coverage is available to policyholders who stay in a property such as a condo, single family home, apartment, studio, loft, townhouse, duplex, or mobile home for rent in NJ. Regardless of the type of a dwelling you may reside in, you have four major coverages to consider when looking at standard renters insurance policies in New Jersey:
When selecting personal property coverage, the most important is to get the policy which provides the coverage you need. For coverage C, the choice is between the Actual Cash Value (ACV) or Replacement Cost Value (RCV) policy.
Make sure to speak with a New Jersey licensed insurance agent for more recommendations based on your specific needs, and for the best renters insurance NJ quotes.
If your rental property is damaged and is unlivable - let’s say a tree fell on the roof and the ceiling is leaking, you may be able to get out of the lease and move to a completely new place. Or, you may want to keep the tenancy in the old rental unit and choose to move to a temporary residence while the repairs are undergoing. If you do, the cost of the temporary housing and any other increase in costs associated with the change of residence can be covered by the loss of use coverage. Most typical items to be covered under the Loss of Use are:
When choosing the amount of coverage for the Loss of Use, the choice is between picking a flat amount (typically $5,000 - $10,000) or a percentage of your Personal Property (Coverage C). For example, if Coverage C is purchased for $20,000, a Loss of Use Coverage D will pay up to $8,000 at 40 percent (20,000 x 0.4), up to $4,000 at 20 percent (20,000 x 0.2), and so on. 20% is the most commonly offered option in New Jersey.
Personal liability coverage (Coverage E): Personal liability insurance for renters covers you if you are found legally responsible for another’s injury or property damage. It can also pay for the cost of your legal representation in court.
Selected liability coverage must be enough to protect you from spending any money from out of pocket on paying damages and legal costs. With the average cost for an attorney in New Jersey at around $300 per hour and the ever growing medical expense costs, the most commonly purchased liability amount of $300,000 should be enough for most. If the insured has assets that amount to more than $300,000 - $500,000 - it is better to seek the advice of a New Jersey insurance professional.
Your renters policy also provides pool insurance for renters for above-ground pools installed by the landlord. Your personal liability coverage will pay to repair the pool if you damage it.
Medical payments to others coverage (Coverage F): This coverage is for the medical bills of neighbors and visitors who get hurt while on your rented property, even though you are not liable for the injury. Note that this coverage does not extend to your family members. For example, you have a friend over to help in your kitchen, and they cut themselves with the knife, Your renters policy medical payments to others coverage can settle their medical bills.
Does everyone need renters insurance: Under NJ laws, renters insurance is not required but it may be required by the landlord, who may add a lease clause requiring renters insurance.
Renters insurance in New Jersey provides coverage for personal property, loss of use, personal liability, and medical payments to others. Renters pay a premium to access the insurance policy, and renters insurance policies have a list of perils allowable for the loss, damage, or destruction of personal property. Common perils include fire, lightning, smoke, explosions, theft, windstorm, falling objects, and damage from vehicles and aircraft. Perils not listed as covered in renters insurance policies are not recognized, and the NJ renters insurance companies will not pay for claims made for damage due to such perils. Typical New Jersey renters insurance policy does not cover flooding, earthquake, and termites, mice, rats, birds, and other vermin infestations.
You can add coverage for perils not listed in your policy through coverage options called riders (also called endorsements). You may be required to pay a deductible by the insurance company after the covered loss or damage of your personal property before the insurance company can kick in to reimburse you. Every renters insurance policy has a policy limit, which is the maximum amount the policy will pay in the event of a covered incident. Insurance companies usually offer renters insurance policies as either actual cash value (ACV) or replacement cost value (RCV). Actual cash value reimburses you for the value of your lost or damaged property at its value today, considering the depreciation through age and present condition without your deductible. On the other hand, replacement cost value pays the current replacement cost minus your NJ renters insurance deductible. Note that replacement cost value renters insurance policies will increase your NJ renters insurance cost. To learn more about the renters insurance NJ cost options available in New Jersey, speak to a licensed P&C insurance agent.
Renters insurance coverages provide the insured individual with:
The personal property coverage component of your New Jersey renters insurance covers losses to your personal possessions, such as your clothes, furniture, and electronics, due to the following:
Loss of use coverage will pay for your hotel stay, meal expenses, and other similar expenses if your rented apartment becomes inhabitable due to a covered event and you have to stay at a hotel for some days. Renters insurance will also pay for injury to others for which you are found liable (liability coverage) and the cost of treating injuries sustained by third parties in your rented home (medical payment for others).
The primary purpose of renters insurance in New Jersey is to protect the insured from the financial impact of paying for personal property loss, additional living expenses, personal liability, and medical payments for others. Renters insurance will pay for damage to your property, your temporary hotel room expenses, claims filed against you by another person, and payment for treatment for others injured while at your apartment. It transfers these risks and the responsibility of such payments from you to your insurance company. Finding out you have no renters insurance after any of these types of events may be devastating. Talk to a licensed and knowledgeable P&C insurance agent in New Jersey to find out how you can take benefit from renters insurance.
Renters insurance in New Jersey includes coverage for additional living expenses, personal property, medical payments for others, and liabilities. You can purchase renters insurance that provides up to $500,000 in liability coverage in New Jersey, and increase the limit to 1 million by adding a renters umbrella policy. An umbrella policy provides additional coverage if necessary. Typical New Jersey renters insurance also provides personal property coverage of up to $20,000. However, you can increase the coverage limit to $40,000 by paying more in premiums. Contact a licensed New Jersey P&C insurance agent to understand what your renters insurance policy covers and excludes.
Renters insurance in New Jersey provides coverage for the person who signed up for the insurance policy (policyholder) and immediate relatives who live with them, including their spouse and children. You are required to add the name of your unmarried partner living with you for your renters insurance to cover them. Unrelated roommates are not automatically covered unless their names are listed on your renters insurance policy.
If you live in any of the over 1.4 million rented homes in New Jersey, your renters insurance policy will protect your personal property from unforeseen events or damages. Renters insurance will also cover the bills for injuries, medical treatments, and liabilities to others for which you are responsible. For example, if you own a dog and it bites a visitor, the treatment costs for such an injury will be paid by your renters insurance company. Note that some dog bite injuries such as nerve damage, dismemberment, and rabies can be quite severe, and the average payout for dog bite claims was about $49,000 in 2021. Also, if your rented home is made uninhabitable by a covered hazard and you have to live elsewhere temporarily, renters insurance will pay you for additional living expenses, including hotel bills and feeding.
The most common uses of renters insurance in New Jersey are:
The main differences between New Jersey renters insurance and homeowners insurance (also called home insurance) are:
Yes, as a tenant of one of the over 1.3 million New Jersey rental dwellings, you need to protect your personal belongings, which are probably important to you, and ultimately have a replacement plan ahead of insurable events. The following are frequently asked questions on the need for renters insurance in NJ:
No, you do not need renters insurance if you have homeowners insurance in New Jersey. Your homeowners insurance policy should be adequate in providing the coverages you need to protect your home and personal belongings. Renters insurance is something you may require your future tenants to get, if you decide to rent out your home in the future. You can speak with a New Jersey-licensed P&C insurance agent to help you determine if you have a need for renters insurance in addition to your homeowners policy.
You do not need to get a renters insurance policy in New Jersey if you reside with your parents. Your coverage needs are covered by your parent’s renters or homeowners policy, even if you are not explicitly mentioned in the policy. If your parents do not have residential insurance, speak with a licensed insurance professional for advice on NJ renters insurance requirements.
Even if you share a room with someone who has a renters insurance policy in New Jersey, you are better off if you have your own renters insurance policy. Unless the policyholder (your roommate) is related to you and the relationship allows your coverage under the terms of the renters insurance policy, you are not covered by default. If your roommate adds you to their policy, you will be covered but this may require you to share the premium and the claims payment fairly with them; this is usually complicated.
Renters insurance for unmarried couples: You need renters insurance if you live with your boyfriend or girlfriend who has a renters insurance policy in New Jersey unless they already listed you on that policy. Only spouses, civil union partners, and family members are automatically added to a policyholder’s renters insurance policy.
Renters insurance multiple tenants: Yes, if you want your belongings to be insured - you need renters insurance when you rent a room in New Jersey. Your landlord’s insurance policy for their rental unit does not extend any protection to your personal possessions or provide you with liability coverage.
If you rent a house in New Jersey, renters insurance is essential, even if the landlord has insurance for the property. The landlord’s insurance covers the structure of the building and excludes the personal property and liabilities of the tenant.
Your renters insurance in New Jersey begins on the day listed as its effective date, which is different from the date of issue. The effective date may also be called the “policy start date” or “commencement date”. You can choose the effective date of your renters coverage at the point of creating the policy. The effective date also marks the date you have to start your monthly premium payments. Note that the effective date of your policy is important if the landlord requires renters insurance before signing a lease; the landlord typically expects the coverage to start the same day you move in.
In New Jersey, if you rent a condo, townhouse, apartment, or home, you can get renters insurance to cover your personal property in your rented space from insurable perils and events. While considering your options for renters insurance and pondering questions like “which renters insurance policy should I get?”, your best option is always to seek the advice of a knowledgeable New Jersey-licensed P&C insurance agent. Their answer will guide you in purchasing the best renters insurance in NJ for your coverage needs.
If you reside or plan to reside in a rented residence in New Jersey or hold a lease, you qualify for renters insurance. Also, as a roommate in a rented property, you qualify for renters insurance if the policy of the leaseholder does not extend to you by default as a non-family member. Family members who are already covered by the policyholder are also not left out as they can choose to purchase renters insurance for additional personal property coverage, especially if they own expensive items.
Renters insurance is designed specifically for people who do not own the homes in which they reside. In New Jersey, this includes individuals who rent or lease a property, no matter the duration of their intended stay. Most landlords and apartment complexes only have insurance to cover the damage to the actual dwelling, leaving the personal property of the lessor or tenant at risk. Landlords realize this risk and may insist that a tenant should have renters insurance before signing a lease or may require it for renewal. Landlords who insist on renters insurance for their tenants may also ask that you add them to the policy (this is referred to as: interested party renters insurance). It is possible for the landlord to also be included on the policy as renters insurance additional interest.
As a tenant in New Jersey, you should get renters insurance if your personal possessions are valuable to you and/or if you want to safeguard yourself from possible liabilities associated with the rental space. You may not know this, but taking an inventory of your property will show that the belongings add up and have more value than you may realize. You should also get renters insurance because many professional property managers and single home landlords may require proof of renters insurance from would-be tenants. You can provide this proof by providing your renters insurance declaration page.
Speak to a New Jersey-licensed P&C insurance agent with questions you may have before you get a renters insurance policy. A competent and professional agent will help you understand what is required in NJ renters insurance.
The top benefits of renters insurance in Jersey include:
Below are the pros and cons of renters insurance in New Jersey:
Renters insurance has the following advantages:
Having a renters insurance policy is the ideal way to go to protect your property in a rented apartment or home. You should, however, be aware that renters insurance has its downsides, which include the following:
The best way to find a renters insurance policy with suitable and cost-effective coverage in New Jersey is to consult with a P&C insurance agent who has access to multiple insurers and can answer all your renters insurance questions based on your needs.
Yes, renters insurance is worth buying in New Jersey. It protects you from perils such as theft, vandalism, smoke damage, and fire while living in a rented home. Renters insurance with low deductible can protect you from massive out-of-pocket payments to replace your property, pay for third-party liability, additional living expenses, and medical payments to others. Talk to a New Jersey-licensed P&C insurance agent who can explain the benefits of renters insurance in more detail.
Without renters insurance in New Jersey, you risk losing your personal property and your current lifestyle to insurable events and perils. You will have nothing to mitigate the financial strain of replacing your property, liability claims against you for injury to others, and payment for treatment to others injured on your property. If you have no renters insurance in New Jersey, you will need to make all these payments out of pocket without any form of reimbursement.
Renters insurance is important in New Jersey because it provides a safety net for both the landlords of the over 1.4 million rental homes and their tenants. It can also cover you from liability claims and the need to pay for the treatment of others subject to your renters insurance policy limits.
As a tenant or leaseholder with a NJ renters insurance policy, you have to keep your insurance coverage in force by paying your premiums as scheduled. If not, you will lose coverage if the policy lapses. You typically have a month’s notice called the grace period before the insurance company will cancel your policy. If you miss your premium payment, you can still pay it within the grace period. However, if you miss this opportunity and allow your renters insurance to lapse, even for a day or two, you will not have coverage for any damages you may suffer afterward. Also, a lapsed policy may reflect on your insurance record and can lead to higher renters insurance premiums in the future.
As the saying goes, “Nobody likes paying for insurance coverage, but everyone regrets not having it when an insurable event occurs and there is no coverage.”
A New Jersey-licensed P&C insurance professional can assist you with keeping your insurance policy in force, hence preventing it from lapsing.
Only a licensed insurance agent can assess your needs and make a recommendation of the type of policy from which you can benefit the most. While considering getting NJ renters insurance, knowing the type of available policies and the amount of coverage you need is essential. Your policy choice will depend on your unique needs and the things you care about protecting the most. To determine the amount of coverage you need, get a detailed list of all your personal belongings and an estimate (or receipt ) of their value. This will help to determine their replacement costs in the event of a covered peril, and ultimately the policy type to buy.
Insurance companies also offer renters insurance policies based on the method of reimbursement. A named perils policy will only reimburse for hazards listed in the insurance policy. An all-risk policy, on the other hand, will reimburse you for loss irrespective of the cause.
Commonly available coverages for renters insurance in New Jersey include personal property, personal liability, additional living expenses, and medical payments coverages. Note that while the coverage may be similar, not all renters insurance policies are the same. Therefore, shopping around for NJ renters insurance quotes and comparing policies from different insurers is advised. If you want to get the best value for your money in a renters insurance policy, speak with a New Jersey insurance professional to guide you as you shop around to get a suitable renters insurance quote.
|Most Common Renters Insurance Companies in New Jersey|
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|Note: Average consumer satisfaction score is the average aggregate score from multi-user (non-employee) review platforms, such as: ConsumerAffairs, TrustPilot, WalletHub, SuperMoney, and others (based on availability).|
Always compare multiple quotes. Verify not just the price but also the coverage you get for it. Get renters insurance quotes by searching online or by speaking with knowledgeable NJ residential property insurance agents with access to multiple competing insurers. An agent can assess your needs and provide professional and free advice.