What is Covered and Not Covered by Renters Insurance in New Jersey - FAQ

Renters insurance provides a means for New Jersey residents to cover losses on their property while staying at a rented property in any of the 1.4 million rental properties in the 21 counties. It is relatively inexpensive, covers the insured from displacement from their rented property, offers liability protection, and protects their personal belongings.

How much does renters insurance cost per month in NJ? Also called the ho-4 renters insurance, the average renters insurance cost in New Jersey is from $15 to $30, which is about 13% less than the US renters insurance premium average.

What does renters insurance cover in NJ? Renters insurance in New Jersey provides:

• Coverage for personal property
• Loss of use coverage
• Personal liability coverage
• Medical payments to others

However, suppose you install a carpet in your rented home after moving in. In that case, the carpet will be covered by your renters insurance when damaged by a covered event in your renters insurance policy. New Jersey renters insurance provides the option of insuring personal property based on the actual cash value (ACV), where the policy pays the current market value (depreciated value) of the item, or replacement cost value (RCV) - where the payout lets you buy a new replacement. Speak with your agent about how much coverage is appropriate for your belongings.

Is renters insurance mandatory in New Jersey? Tenants in New Jersey are not legally mandated to have renters insurance, but their landlords may require it before they sign the lease. The reason why landlords require renters insurance is to help reduce their risks. Some landlords will also require that you add them to your renters insurance, but listing your landlord as additional insured on renters insurance may have advantages and disadvantages. Talk to a NJ-licensed independent P&C agent to find affordable renters insurance and to discuss renters insurance-related questions you may have. Only an agent can quote renters insurance based on your needs.

Does Renters Insurance Cover - FAQ

What is renters insurance in NJ? Renters insurance in New Jersey financially protects you and your personal belongings in the event of unexpected events. It also protects you financially from liability, like a fire starting from your apartment and destroying your neighbors’ property. Below are the most frequently asked questions on New Jersey renters insurance.

LIABILITY

Does NJ have renters liability insurance? Yes, NJ renters insurance provides liability coverage, which pays for property damage claims, legal costs, and can help pay medical expenses of the injured 3rd party. The impact of liability damage can be severe and can lead to financial ruin. This is why renters in New Jersey need to have renters insurance. NJ Renters insurance protects against potential out-of-pocket payments from legal fees, lost wages claims, and other expenses incurred due to liability. A liability claim against you may mean you will have to deal with lawsuits and attorneys and the associated costs. A 2020 survey of adults aged 45 and older in all counties in New Jersey showed that 7.1% of them fell and had injuries from the fall within 12 months. If someone trips and falls due to a slippery tile, renters insurance will cover the injury and the liability for the fall. Having no renters insurance can lead you to empty your 401(k) (workplace retirement plan) and dispose of your other assets to cover the damages if they sue you.

Does Renters Insurance Cover Personal Injury?

Yes, renters insurance NJ covers personal injury of the 3rd party - not the insured. Renters insurance does not cover personal injury to you or others living with you (family members or roommates) listed in the renters insurance policy. Renters insurance will only pay for the medical expenses of other persons on your property (excluding visiting family members) even though you have not been found liable for their injuries. This payment is through the medical payments coverage of renters insurance. Renters insurance will also pay for the injury to others you are liable for. Renters insurance payments for injuries include the medical bills and associated costs like x-ray, MRI scans, surgery, and physical therapy afterward.

PROPERTY

Your renters insurance serves as a means of protecting your property as a renter in New Jersey. It also provides coverage for damage you may cause to other people or their property. Your renters insurance policy typically has coverage limits, and some coverages may require a deductible before the coverage kicks in. The renters insurance declaration page of the policy will provide the specifics of your coverage options and answers to your renters insurance questions. While considering your options for renters insurance and speaking with a P&C agent, ask for a renters insurance declaration page sample to view the summary of the renters insurance the agent is offering.

Does Renters Insurance Cover Damage to Property?

Yes, renters insurance in New Jersey covers personal property damage. The degree of coverage depends on your policy limits, exclusions, and the riders (additional coverage).

Does Renters Insurance Cover Carpet Damage?

Your standard renters insurance does not cover the carpet installed in your rented apartment from damage from fire, flood, or other perils. This is because the carpet in your property is part of the property's structural components, which are omitted from renters insurance coverage. The structural parts of the building, including pre-installed carpets, are covered by the landlord’s insurance. However, if you install a carpet in your rented home after moving in, the carpet will be covered by your renters insurance when damaged by a covered event in your renters insurance policy. Renters insurance policy does not cover natural disasters like floods and earthquakes. For renters insurance with flood coverage for your carpet, purchase an insurance policy from the National Flood Insurance Program (NFIP), which is managed by the Federal Environmental Management Agency (FEMA).

Average costs of carpet damage repair in New Jersey

Does Renters Insurance Cover Broken Windows?

A common question for NJ renters is: Does renters insurance cover a broken window? No, New Jersey renters insurance does not cover broken windows; broken windows are covered by the landlord’s insurance because they are part of the building structure. Window cracks from wear and tear leading to broken windows. However, the tenant is responsible for any damage to the window caused by negligence, carelessness, or misuse by them or their guests. Replacing a window in New Jersey costs between $410 and $620 per window, with a professional fee of about $150 per hour. The type of windows will influence the final cost of repair or replacement.

Does Renters Insurance Cover Appliances?

Yes, NJ renters insurance provides comprehensive coverage for the insured’s appliances, machines, and gadgets stolen or damaged by a listed peril. The HO-4 form, also called the renters insurance, generally recognizes 16 perils, which include popular and less popular perils.

The popular perils include:

• Smoke
• Windstorms or hail
• Lightning or Fire
• Vandalism or malicious mischief
• Theft
• Damage from vehicles
• Weight of snow, ice, or sleet

The less popular perils include:

• Falling objects
• Explosions
• Volcanic eruptions
• Damage from aircraft
• Riots or civil commotion
• Accidental air conditioning, plumbing, and heating malfunctions
• Damage caused by surges from artificially generated electrical current

Your NJ renters insurance policy covers only appliances belonging to the tenant and not appliances preinstalled or placed in the property by the landlord. For example, if a fire swept through your rented apartment and destroyed your TV, air conditioning, microwave, or coffee maker, you can file a renters insurance claim for reimbursement for your damaged property. The renters insurance claim process will require proof of the damage, but it should conclude with your reimbursement. Note, however, that there may be restrictions or limits on the coverage. If your renters insurance claim is denied and you cannot reach a resolution with your insurance company, you can contact the New Jersey Department of Banking and Insurance (NJDOBI) by phone at (609) 292-7272. You can also file a complaint online from the NJDOBI website.

Repairing or replacing your property out of pocket may set you back about $100 per hour plus parts for repair. The cost for the replacement of some popular appliances in New Jersey are as follows:

• Toaster - $25 - $130
• Coffee maker - $50 - $1,100
• Blender - $25 - $450
• Air Conditioner - $170 - $700

For affordable renters insurance in New Jersey that covers your appliances, speak to an NJ-licensed P&C insurance agent.

Does Renters Insurance Cover Broken Appliances?

Yes, NJ renters insurance covers broken appliances owned by the renter only if the appliances broke down due to a covered loss. However, appliance malfunctions are not covered. For instance, if any of your covered appliances gets broken down during a lightning strike on your apartment that leads to an electrical surge, you can file a claim with your insurance company. Accidental damage to your toaster or coffee machine due to a sudden increase or decrease in artificially generated electrical current qualifies for coverage from your renters insurance. New Jersey renters insurance will pay for losses caused by a broken device. For example, if your washing machine breaks down and leaks water into your apartment, destroying a carpet you own, you would be reimbursed for the damage to your carpet.

The cost of fixing your broken appliance in New Jersey depends on the device's type, model, and extent of the damage. Technicians typically charge around about $100 per hour (excluding the cost of replacement parts) to fix a damaged device in New Jersey. Ensure you speak to a New Jersey-licensed insurance agent who can provide renters insurance quotes in New Jersey. NJ Renters insurance quotes will help you find the cheapest renters insurance in NJ.

Does Renters Insurance Cover Jewelry?

Yes, your NJ renters insurance policy covers your jewelry. Most renters insurance coverage for jewelry is limited to theft and may have a lower and upper limit of $500 - $1,000. However, since jewelry is covered by your renters insurance, you can increase this limit by purchasing a rider for your jewelry (adding a schedule or scheduling). Note that purchasing a rider will increase your monthly premiums. You can use schedules for your jewelry to extend the coverage beyond theft and include other covered events and damage from the weather, malicious activity, and more. Some insurance companies may require you to schedule different pieces of jewelry you possess separately, such as a necklace or engagement ring. Your renters insurance will also not cover your jewelry loss to theft if a member of your household or someone living with you steals the jewelry.

Data from non-governmental security agencies show that burglars seek out jewelry, which is also one of the most common items stolen from homes. The FBI reported 16,399 burglaries in New Jersey in 2019. You can speak to an NJ-licensed insurance agent to find the best renters insurance in NJ which adequately covers your jewelry.

Does Renters Insurance Cover Lost Wedding Ring?

Yes, renters insurance in NJ covers your lost wedding ring up to a limit of $1,500 for most insurers. If you own multiple rings, such as a wedding and engagement ring, you can add riders to your coverage options if their collective value exceeds your policy’s sub-limit for jewelry. Renters insurance will cover the value of your lost ring, or at least part of the value if it is lost or stolen on your property or while you are on vacation. Knowing the value of your ring (you can use a professional appraisal service) is important, so you can know how much additional renters insurance coverage you need. This also helps the insurance company determine the replacement cost. Some insurers also provide jewelry insurance separate from renters insurance.

If you have to file a claim for the loss of your wedding ring, you should report the loss to the police before filing the claim. Do not delay in filing the claim, as most insurance companies have a deadline of 48 - 72 hours after the incident.

Does Renters Insurance Cover Firearms?

Does renters insurance cover guns: Yes, NJ renters insurance covers firearms under your renters insurance personal property coverage. Covered firearms include your handgun, machine gun, shotgun, rifle, and an automatic or semi-automatic rifle. These may also be a single gun or a collection. Some insurers do not provide coverage for assault weapons (semi-automatic and automatic pistols and guns). Renters insurance coverage for firearms is typically pegged at no more than $2,500 in Jew Jersey. If you own an expensive collection of guns or firearms, you may need to opt-in for dedicated gun theft or gun and firearms insurance.

New Jersey has a gun ownership rate of about 15%, and about 1.45 million New Jersey residents 18 years and above, live in a house where firearms are stored.

Does Renters Insurance Cover Trampolines?

Not all insurance companies that provide renters insurance coverage in NJ cover trampolines. Trampolines are considered fun but dangerous, and hence, they may attract higher insurance premiums. Insurance companies that provide coverage for trampolines typically cover the trampolines as your personal property but do not provide personal liability coverage from injuries sustained while using the trampoline. Some insurance companies will require the installation of a safety net around the trampoline as a condition to be met before it can be covered by renters insurance.

If you have a trampoline in your rented home, ensure you confirm that your potential insurance company offers trampoline coverage before purchasing renters insurance.

Does Renters Insurance Cover Lost Items?

Yes, your New Jersey renters insurance covers your lost items if the loss is caused by a peril listed in your renters insurance policy, such as theft. However, your standard renters insurance does not cover your misplaced shoe, wallet, or purse. If you lose your camera while traveling, you will qualify for reimbursement, as this is a recognized peril. Your personal property lost away from home would also qualify for reimbursements if it is scheduled in your policy. But note that the limits available in your renters insurance quote may be lower for losses that occur outside your insured rental unit.

You can add scheduled personal property coverage to your renters insurance to cover your valuables from accidental loss.

Does Renters Insurance Cover Stolen Packages?

Yes, your renters insurance in New Jersey covers packages stolen on your front porch or lobby. However, most renters insurance coverage for theft comes with a deductible of between $500 and $2,000. If your package is stolen, you will need to pay the NJ renters insurance deductible before your renters insurance kicks in to reimburse you. The average stolen package in New Jersey was valued at $35, and 18.5% of residents of the state had their package stolen at least once a month in 2021. Package theft by so-called porch pirates is on the rise, and the value of packages stolen in the US topped $5 billion in 2020. Ensure you talk to your insurance agent in your zip code about how you can get the best renters insurance quote in NJ to protect against the theft of your ordered packages.

TOXIC MATERIALS

As a renter in New Jersey, dealing with toxic materials is sometimes unavoidable. This is because toxic materials sometimes originate from the materials used in constructing the building. Due to perils such as floods and water backup, unexpected moisture around the property further adds to toxicity. Materials such as mold, lead exposure, asbestos, bedbugs, radon, and lead can pose serious toxic risks to a tenant if present on the property. Toxic materials can cause discomfort to the tenant and, sometimes, health hazards, which can trigger medical conditions like asthma. According to the Centers for Disease Control (CDC), asthma is the fourth most prominent cause of physician office visits in the US.

Does Renters Insurance Cover Mold?

Yes, renters insurance companies in NJ provide renters insurance mold coverage to holders of renters insurance policies, but this coverage depends on certain factors. Only mold that results from a covered loss is covered. As such, mold that results from a burst or frozen pipe will be covered. On the other hand, mold infection that is not caused by a listed peril will not be covered. Typical sources of mold in your rental property that is not covered include:

• Molds from floods
• Molds caused by negligence
• Molds caused by lack of proper maintenance
• Molds caused by other uncovered perils in your renters insurance

Molds are fungi and exist naturally in nature. They emit spores and chemicals that are microscopic, airborne, and can be inhaled easily. This makes them a health concern as they can trigger allergic reactions, sneezing, skin rashes, coughing, and nasal congestion. The New Jersey Department of Health recommends mold remediation if present on a property for these reasons. Remediation in areas not more than 10 square feet may be done by the maintenance staff of your rental property. Where mold infestation is up to 100 feet, you may need the services of a qualified contractor with experience in environmental cleanup or mold contamination.

Is mold covered by renters insurance if caused by flood? To cover mold infestation caused by flood damage, you need flood insurance from the National Flood Insurance Program (NFIP). The average cost of mold testing in New Jersey is $390 - $600, while remediation costs $3 per square foot. Complete testing and remediation in New Jersey will cost about $1,500 to $6,000, depending on the scale of the infestation.

ELECTRICAL

As an NJ renter, you should know what NJ renters insurance covers regarding electrical-related matters, such as power surges and outages. The electrical installation in your rented property is part of the building; hence, it is the responsibility of your landlord and should be covered by their landlord's insurance. However, your devices are connected to these electrical systems through electrical outlets, and you use them daily. So, you need coverage for your devices with renters insurance. Electrical malfunctions or failures were the second leading cause of home fires in the US from 2015 - 2019 and were responsible for 13% of all such fires. Your renters insurance policy covers electrical damage to your personal belongings.

Does Renters Insurance Cover Power Outages?

Yes, renters insurance in NJ covers power outages due to a covered peril. The most common causes of power outages in New Jersey are weather-related perils such as adverse weather and falling trees, animals, and vehicle damage. For example, 2 million people lost power for lengthy periods due to Hurricane Sandy in 2012, while 250,000 people suffered power outages during a tropical storm in Ida in 2021.

How does renters insurance cover power outages? Renters insurance covers the associated losses to the renter caused by the power outage. An example is if your rented home experiences a power outage over an extended period, thereby damaging the food in your refrigerator. Your renters policy may help pay for the losses and the additional living expenses of eating out if the power outage prevents you from cooking. You should list all the food wasted and the cost from your local grocery when throwing them away to help with the claim filing process.

Does Renters Insurance Cover Power Surges?

NJ renters insurance does not cover power surges, except if the power surge was due to a covered peril in your renters insurance policy. For example, a power surge caused by lightning, leading to the destruction of your TV, would be covered because the lightning is recognized as a peril in your renters insurance. While your renters insurance will not cover the direct destruction of your electronic appliance by a power surge, the resultant damage due to the surge may be covered. For example, the surge leading to the destruction of your appliance also led to a fire from the appliance which damaged your property.

WATER

Water poses serious risks to property in New Jersey from multiple sources. These include water overflows from the kitchen sink and bathtub, plumbing malfunctions, piping leakages from appliances that use water, and weather events. New Jersey, with its proximity to the Atlantic Ocean, is prone to weather hazards like tropical storms, which bring a deluge of rain, and the risks of floods, annually between August and late October. As a renter in New Jersey, you need to know how your renters insurance deals with these potential risks.

Does Renters Insurance Cover Water Damage?

Yes, renters insurance in New Jersey covers water damage from internal sources like air conditioners, plumbing leaks, water heaters, and furnaces. However, it does not cover water damage caused by water backup, a deluge, and heavy rain. Will renters insurance cover water damage from a hurricane? No, renters insurance will not cover water damage caused by a hurricane. Note that while New Jersey renters insurance will not cover water damage from a hurricane, it will cover water damage caused by roof leaks due to the hurricane. When a type of water damage is not covered by the standard renters insurance, you can purchase an add-on coverage for additional protection of your personal property.

Does Renters Insurance Cover Flood?

Many people have asked; does renters insurance cover floods? The answer is no. Renters insurance in New Jersey does not cover floods. Only flood insurance for renters can cover your personal property in a rented home against floods. You require a National Flood Insurance Program (NFIP) standard flood insurance policy (SFIP), which provides coverage for floods related losses. The Federal Emergency Management Agency (FEMA) administers the NFIP. As a result of Hurricane Sandy, the NFIP handled 75% (55,865 claims) of flood insurance claims within five months of the disaster. The maximum coverage you can get from the NFIP for your personal property is $100,000.

FIRE

More than 25% of fires reported from 2015 - 2019 in the US occurred in homes. During this same period, there were about 346,800 home structure fires yearly, resulting in $7.3 billion in property losses. Cooking was found to be the lead cause of home fires and injuries. Other sources of fire damage and casualties include electrical distribution, heating, lighting equipment, smoking materials, and intentional fire setting. While fire damage to your rented apartment is the responsibility of your landlord, renters insurance is an affordable way to get fire insurance for renters in the event of a fire.

Does Renters Insurance Cover Fire Damage?

Yes, renters insurance in New Jersey covers fire damage. Fire is a standard peril in most renters insurance policies, so coverage for personal property damage, personal liability, loss of use, and medical payments to others is covered. This means that your renters coverage will reimburse you for losses to your personal property caused by a non-intentional fire outbreak, regardless of the cause. If you have an apartment fire with no renters insurance, the effects may be devastating. It could be a kitchen fire, electrical fire, or candle. If the fire makes your property uninhabitable and you must stay at a hotel or short-stay rental, your renters insurance will also cover these expenses. Renters insurance covers medical payments to others that are fire-related. For example, if your friend gets hurt while trying to evacuate your building due to a smoke alarm going off due to a fire from a frying pan spill in the kitchen. Medical payments to others can cover your friend's medical expenses.

Does Renters Insurance Cover Smoke Damage?

Yes, renters insurance in New Jersey covers smoke damage. Smoke damage can be expensive because it leaves discoloration and odors on your personal property. You will need the services of a professional to remove the discoloration and odors. However, renters insurance will not cover smoke damage caused by cigarette smoke, manufacturing of illegal substances, or industrial operations.

THEFT

There were 79,347 cases of theft in New Jersey in 2020. Your personal property is at risk of being stolen, and renters insurance offers you a relatively affordable option to protect them. Renters insurance offers options to protect your personal property in your home, your car, and outside your home.

Does Renters Insurance Cover Theft?

Yes, standard renters insurance in New Jersey covers the theft of your property from your rented home, hotel room, or while on vacation. High-value items such as firearms, silverware, cash, and credit cards are covered up to the specified limit in your policy. You can, however, purchase an endorsement to increase your coverage for these items.

Does Renters Insurance Cover Bike Theft?

Yes, renters insurance covers your personal property in New Jersey, including your bike. This is good to know as it is reported that bike theft is on the rise in New Jersey post-Covid. Coverage for bicycles is usually actual cash value less the deductible. Having renters insurance with a low deductible will work in your favor if your bicycle is not very expensive. Some insurers have a sub-limit of $1,500 for bicycles. If your bicycle costs more than $1,500, you will need to add riders to cover it in your renters insurance policy. Note that renters insurance does not cover motorcycles, and you need motorcycle insurance to cover your motorcycle.

How does renters insurance cover bicycle theft? You have to file a claim after losing your bicycle to theft. File the claim after making a police report. Your insurance company will reimburse you after you pay the required deductible. Note that if the value of the bicycle is less than your deductible, the insurance company may not pay for the loss of a bike stolen from renters insurance policyholder. For information on how to get renters insurance with low deductible insurance, speak to an NJ-licensed insurance agent.

Does Renters Insurance Cover Theft Outside The Home?

Yes, NJ renters insurance covers theft outside the home. The renters insurance theft coverage pays for the theft of your insured personal property outside of your home. For example, if someone steals your wristwatch from your hotel room or car, you qualify for renters insurance reimbursement. You will need to file a police report, and your insurance company will require you to pay a deductible, which will be deducted from your insurance check.

Does Renters Insurance Cover Theft from Car?

Yes, you are covered by your New Jersey renters insurance policy if your personal possession is stolen from inside your car. Auto insurance covers only the damage that could have been done during the theft to the vehicle itself. If a thief breaks into your car, renters insurance (like any other residential insurance) covers the personal property in the car at the time of the theft or break-in and will pay for replacements. Keep in mind that most renters insurance policies place a limit on the coverage of personal property outside of your rented unit at a fixed amount or about 10% of the renters insurance limit.

ANIMALS & INSECTS

Animals such as pets, strays, and rodents may impact your rented property in New Jersey. Pets like dogs and cats can bite people resulting in liability claims from the injured parties. These animals are also capable of damaging property. There are 70 million free-roaming cats in the United States, which pose environmental and property risks. Rats like the Norway rat (common in New Jersey) are comfortable in man-made environments and can cause disease to residents and destruction to property. Insects like termites can also be very destructive to your personal property. (Health insurance coverage for pets is provided by Pet Insurance).

Does Renters Insurance Cover Animal Damage?

This depends on the animal and the circumstances. If your dog damages your neighbor's property, then your renters insurance personal liability component will cover the damage. However, the damage your dog causes to your property is not covered by your renters insurance. Your renters insurance will also pay for the liability of your dog biting your neighbor, but not for biting a member of your family or household. Your renters insurance does not cover damage from rodents such as sewer rats (also called Norway rats). Insurers consider rodent damage to be caused by negligence or lack of upkeep by the landlord or the tenant with the policy.

Does Renters Insurance Cover Dog Bites?

Yes, renters insurance in New Jersey covers dog bites. Pet damage, such as dog bites, is covered under the liability or medical payments coverages of renters insurance. Liability coverage pays for dog bites when the incident is caused by your negligence. On the other hand, the medical payments to others coverage will cover a minor injury caused by an accident if the victim chooses not to sue. Medical payments to others coverage in your renters insurance policy pay a lower amount than liability coverage. Having a renters insurance with pet coverage is important as about 4.5 million people are bitten by dogs each year in the United States, with most of them being children.

Note that some insurers have coverage reservations based on dog breeds considered aggressive, such as Pitbulls, and will not provide coverage for dog bites involving those breeds. An alternative to this is to opt for canine liability insurance, which provides broad coverage for any dog breed. Other dogs considered dangerous by insurance companies include German Shepherds, Mastiffs, Doberman pinschers, and Rottweilers. Talk to a New Jersey-licensed insurance agent if you own a dog and need guidance on how this, and other factors may affect your renters insurance coverage options

Does Renters Insurance Cover Bed Bugs?

No, standard renters insurance in New Jersey does not cover damage from bed bugs. The responsibility for paying for the extermination costs of bed bugs infestation is between you and your landlord. This is because bed bugs infestation is considered a maintenance issue. Your renters insurance will not pay for the replacement of personal property damaged by bed bugs. Also, note that even though your renters insurance policy includes loss of use coverage, it will not pay for a temporary relocation outside your rented home because of bed bugs infestation.

You may have other questions concerning bugs as a renter in New Jersey, such as the common ones below:

• Is there bed bug insurance for renters in New Jersey? - Put simply, there is no bed bug insurance for renters in New Jersey
• Does renters insurance cover pest control? - No, renters insurance does not provide coverage for any kind of pest control
• Does renters insurance cover roach infestation? - No, roach infestation is not covered by renters insurance

OTHER COVERAGE - Q&A

As a renter in New Jersey, knowing how renters insurance coverages work for loss of use, hotel stay, roommates, and storage units and having answers to the common questions about these are important. For example, how does renters insurance cover loss of use, when does renters insurance cover hotel stay, or do all roommates require renters insurance. These are common questions for New Jersey renters insurance policyholders. Having answers to the questions connected with these coverages is part of the strategy for a successful renters insurance policy that effectively covers your needs:

Does Renters Insurance Cover Loss of Use?

Can renters insurance cover rent? This is a question many renters ask as they consider buying renters insurance in New Jersey. The answer is yes. The loss of use coverage of your renters insurance policy will provide an alternative housing for you if you have to move out of your unit temporarily due to damage caused by a covered peril. Loss of use coverage also pays for additional utilities, food expenses (groceries, restaurants, cooking), and public transportation fees.

Does Renters Insurance Cover Hotel Stays?

Yes, just like homeowners insurance, NJ renters insurance covers hotel stay when your rented home becomes uninhabitable temporarily because of a peril covered in the renters insurance policy, such as fire or lightning. Your loss of use coverage in your renters insurance quote will cover the cost of this alternate accommodation provision. Likewise, the additional cost you may incur due to eating out instead of cooking your food will also be covered by the additional living expense coverage of your renters policy.

Having to make out-of-pocket expenses for a hotel stay in New Jersey can put a dent in your savings after paying rent. The average cost for a couple in New Jersey for lodging, transportation, and food expenses for a week is from $2,170 to $4,600. While for a family of four, the average cost is from $4,300 to $8,700 per week.

Some common questions concerning renters insurance and loss of use coverage (additional living expenses coverage) options include:

• Does renters insurance cover temporary housing? - Yes, most renters insurance cover temporary housing after a covered event
• Does renters insurance cover hotel stay without paying a deductible? - Yes, your renters insurance deductible does not apply for loss of use which covers your hotel stay
• How long does a renters insurance hotel stay last? - The limits for your hotel stay can be as short as three months or as long as a year. You should confirm with your insurer
• Will renters insurance cover hotel stay due to a power outage? - No, a power outage is not listed as a covered peril in most renters insurance policies, and so will not qualify as a reason for a hotel stay
• Does renters insurance pay for hotel services such as laundry? - Yes, renters insurance covers your associated living expenses while you can not stay at your rented apartment.

You should talk to an NJ-licensed independent P&C agent to guide you on how much you could save from a temporary hotel stay if you have renters insurance in New Jersey.

Does Renters Insurance Cover Roommates?

NJ renters insurance does not cover your roommates unless they are your immediate family members, such as your spouse and children. While your renters insurance policy may not have the names of your immediate family members residing with you, they are covered by default. They will be included in the personal property, personal liability, loss of use, and medical payment for others coverage of your renters insurance policy. Some insurance companies will allow you to add unrelated roommates to your renters insurance policy, but it is actually better for everyone to have their own policies. Other common questions about renters insurance and roommates include:

• Do all roommates need renters insurance? - Yes, it is advised that all roommates should get their own policy, so if you share a room, it should be with roommates with renters insurance.
• Is sharing renters insurance with roommates good for all involved? - Sharing renters insurance with non-related roommates may reduce the cost of the insurance premium, but it presents complexities along the line. One roommate filing will affect the policyholder’s record even though they did not file the claim, which can lead to higher premiums for the policyholder.

Does Renters Insurance Cover Moving?

Yes, your New Jersey renters insurance policy covers moving your personal property to another location if the move is necessitated by the damage caused to the insured rental home. If you just want to move without the underlying damage to the rental home, then no, renters insurance will not cover the move.

Damage caused by the movers, however, is not covered; this is the moving company's responsibility. Damage due to your negligence, like not packaging your belongings properly while moving them, is also not covered by renters insurance. It is best to use an insured moving company to cover your property from non-listed perils during moving.

Does Renters Insurance Cover Storage Units?

Yes, your New Jersey renters insurance policy covers your personal property in storage units anywhere in the world. This means that while your property is in a storage unit and a covered peril destroys the unit and, ultimately your property, you are covered by renters insurance. Coverage for your property in storage is usually 10% of your personal property coverage limit. However, this limit only applies if your property is in storage because your rented home is being renovated or repaired.

Does Renters Insurance Cover Hurricane Damage?

Yes, hurricane insurance for renters is available in most New Jersey renters insurance policies to protect your personal property. However, only damage from the strong winds of hurricanes is actually covered, even though hurricanes come with heavy rain and floods. Flood damage from hurricanes is not covered in standard renters insurance policies. To protect your personal property from the effects of floods from a hurricane, you need to get renters flood insurance from the National Flood Insurance Program (NFIP). You can also get renters insurance that covers flood damage by adding additional flood coverages to your existing policy. New Jersey’s location on the Atlantic coast, with a coastline of 1,792 miles, makes it prone to hurricanes, and the risks are rising dramatically due to climate change. As recently as September 2021, Hurricane Ida caused severe flooding in New Jersey and incurred about $2 billion in damages.

Does Renters Insurance Cover Tornado Damage?

Yes, NJ renters insurance covers damage to your personal property from tornadoes. Tornadoes are extremely high winds that can flip cars, shred homes, destroy the property in them, and also cause serious injuries to people. Your renters coverage covers tornado damage by providing payments for the replacement of your personal property and providing temporary housing if your apartment becomes uninhabitable due to a tornado. It will also provide payment for additional living expenses you may incur due to the tornado making your home inhabitable. Ensure you talk to a New Jersey-licensed P&C insurance agent to guide you on how much renters insurance coverage you need to cover a tornado adequately.

There have been 30 tornadoes in Northeastern New Jersey since 1950, and these tornadoes have caused about $19 million in damages.

Does Renters Insurance Cover Earthquakes?

No, renters insurance in New Jersey does not cover earthquakes. To protect your property from earthquake damage, you can opt for a standalone earthquake policy, which can provide up to $25,000 in property coverage for a $5 per month premium.

New Jersey has a history of earthquakes typically occurring in the state's northern areas. About 100 earthquakes have had their epicenters in New Jersey from 1738 to 2016 since the first was recorded in 1738.

Does Renters Insurance Cover Lightning Strikes?

Yes, New Jersey renters insurance covers lightning strikes that lead to the damage of your personal property, as lightning is a listed peril in most renters insurance policies. Lightning strikes typically damage your property through fires that result from the strike or an electrical surge that can lead to damage to your property. Renters coverage will cover your property damaged by an electrical surge or damaged by fire resulting from the lightning strike.

Does Renters Insurance Cover Lightning Damage to Electronics?

Yes, renters insurance in New Jersey covers lightning damage to electronics. This means that if lightning strikes your home and causes a surge that destroys your TV, renters insurance will cover the damage up to the coverage limits of your policy. Most renters will only cover your electronics up to $2,500, but you can increase your limit by:

• Buying additional coverage
• Purchasing a replacement cost rider for the specific electronic items if you already have an actual cash value policy.

What is Not Covered by Renters Insurance?

Renters insurance in New Jersey does not provide coverage for the following perils and situations:

• Damage from earthquakes
• Damage from rats and mice
• Damage to freezing pipes
• Mold damage
• Dog bite to members of your family or household
• Flood damage

What Does Renters Insurance Typically Exclude?

Renters insurance in New Jersey excludes the following:

• Maintenance-based damage: All forms of damage caused by maintenance-related issues are excluded. These include wear and tear, rotting, continuous and repeated water damage, water seepage, and pollution.
• Infestation from Vermin: Infestation from termites, birds, and other vermin are excluded from standard rental insurance policies.
• Natural disasters: Severe natural disasters such as landslides, mudslides, sinkholes, floods, and earth movement are not covered by renters insurance. To get coverage for natural disasters, you will need to purchase stand-alone disaster insurance coverage, depending on what you need coverage for. For example, you can purchase flood insurance to cover floods and earthquake insurance to cover earthquakes.
• Vehicle theft: Renters insurance provides coverage for your personal possessions stolen from inside of your car, but does not extend coverage to the theft of the vehicle. To cover your car from theft, you need auto insurance (car insurance)
• Civil unrest or nuclear hazard: Civil unrest and damage from a nuclear hazard are not covered by your standard renters policy
• Roommates or flatmates property: Damage to your roommates’ or flatmates’ property is not covered under your renters insurance policy unless they are your immediate family members or you already have them listed in the policy.
• Expensive personal property: Your renters insurance policy’s personal property coverage may not sufficiently cover your expensive personal items. If you have high-value items such as expensive jewelry and electronics, you should increase your limits sufficiently to ensure you are fully covered or purchase a scheduled personal property rider for added protection.