condo insurance in nj

What is the Cost of Condo Insurance in New Jersey?

Condos have become one of the most common options among home buyers in New Jersey and across all the states. When compared to a single-family house, a condominium has various benefits.

First, a condo is a great option, regardless of whether you are starting a family or escaping loneliness. When you own a condominium in New Jersey, you will most likely worry more about the dangers of wild weather than anyone in the other states.

But, the good news is that there is always affordable condo insurance in New Jersey that will help cover the little maintenance.

What is Condo Insurance in New Jersey?

You need to know that your condo is more than just a roof over your head; it is also your home. Therefore, ensure that you understand the fundamentals of the condo insurance.

When you have a condominium, you will need condo insurance even when you have condo association coverage. Condo insurance protects the interior of your condo and your personal belongings whenever they are stolen or damaged.

What Does Condo Insurance Cover?

Because every condominium master policy can be written differently, insurance companies can always evaluate the section to decide if the Association owners are responsible.

Condo association coverage can protect some items in your condo; however, it is a good idea to have a personal condo insurance policy to protect property damage and personal liability risk of your condo. Condo insurance in New Jersey covers:

Personal Liability

Condo insurance liability coverage protects you whenever someone is unintentionally hurt in your condominium and decides to take legal action.

To protect yourself from lawsuits and hospital bills that might add up quickly, make sure that you have personal liability mitigated just for the worst-case situation.

Loss Assessment

This coverage repays you for the part of an accident or damage to building common areas. This is usually charged to all condo owners.

In other words, loss assessment coverage protects you during situations when you are held financially answerable for a portion of the cost for deductibles or damage to the building, injury in shared areas, and the shared areas property.

Building Property

Building property coverage helps you pay for simple repairs to the walls, and the interior of the condo, for instance, the floors, cabinets, lights, inner-walls, build-in appliances, and everything present in the condo when you moved in.

Personal Property

This is a core part of your condo insurance policy that protects your furniture, clothing, appliances, and electronics whenever they are damaged, stolen, or destroyed by a specific peril.

Other types of coverage include food insurance, umbrella insurance and endorsements.

What is not Covered by Condo Insurance?

Some problems are not included under the typical condo insurance policy. They include;

  • Floods
  • Wear and tear
  • Nuclear hazard
  • Damage caused by birds, insects or rodents
  • Intentional injuries to others
  • Earthquakes

How Much Condo Insurance Should You Have?

This is the first question that you should ask yourself before obtaining condo insurance in NJ. Usually, you can estimate the amount of insurance you need by doing an inventory of all your personal items.

However, some things are very valuable and might require extra coverage. Make sure that the items in your personal property do not surpass the “per-item limit.”

How Much Does Condo Insurance Cost?

Obtaining Condo insurance in New Jersey can be the best option to protect your investments against damages that might be caused by fire or when they are stolen.

The cost of condo insurance is determined by the value of the condominium, the location, and the condo association policy. Other factors that can affect the price of condo insurance include:

  • The type of insurance you choose
  • The available deals and discounts
  • The location and constriction of your condominium
  • The condos coverage you need to buy for complete protection

Keep in mind that the population of the area can also affect condo insurance costs. If the location of your condo is densely populated, then it is more likely to get higher premiums since condominium prices are generally high.

In Montclair, New Jersey, the average monthly insurance rate is $37, while the annual average insurance rate can be up to $438. These prices can seem high, but it is due to the fact that New Jersey State is home to two of America’s wealthiest counties, Hunterdon and Somerset County.

The median home value in Montclair is an average home rate of $660,799.

Is Condo Insurance Mandatory?

It is a good idea to get condo insurance in New Jersey. Typically, the average lender requires that coverage be held to your condo. This means that unless you own your condo upright, it is mandatory to get condo insurance.

This doesn’t mean that you can just obtain an ordinary homeowner’s insurance policy for your condominium. There is a big difference between Homeowner’s insurance and Condominium insurance.

Also, there is a Condo Association, which is almost similar to the Homeowner’s association. The policies can be different depending on the complex, but be sure to look at it carefully before obtaining one.

What is the Difference Between Homeowner’s Insurance and Condo Insurance?

One thing you need to know is that a condo is not a house; therefore, the insurance policies are going to be different. A standard homeowner’s insurance policy protects your house, connected structures, yard, personal property, and liability.

On the other hand, a condo insurance policy includes some of the same features. The main difference here is the coverage for the actual building. Condominiums usually have an association that manages some details regarding the condos on behalf of the unit owners.

Condo insurance in NJ covers all common areas that are shared between you and the other condo occupants. Additionally, the association is responsible for the outside of the building too.

Your condo insurance cost will depend on the deductibles, any applicable discounts and fees, and the coverage you choose. Remember that a lesser amount of coverage and a high deductible means lower payments, on the other hand, more coverage and low deductible means higher fees.

If you are not sure about the policy to choose, contact Schumacher Insurance Agency to get an agent that will make sure you get a policy that offers the essential coverage you need.