Best Condo Insurance in New Jersey

New Jersey is a relatively tiny state bustling with activity and industry. Due to its size and population density, the housing market is hot. Many people look towards condos as housing options due to their location, amenities, or affordable purchase prices.

The perks of condo living can be plentiful for young and old. But, it’s important to remember that you still must protect your unit, even though your condo association has insurance.

This guide details what you need to know about condo insurance in New Jersey, including average costs, coverage requirements, and tips on finding the best coverage.

The average cost of condo insurance in New Jersey is $460 yearly or about $38 per month. Rates were between $32 and $54 on average, depending on your coverage amounts.

The price of insurance isn’t fixed from company to company because the process of determining premiums, called underwriting, differs depending on a firm’s business needs and other mitigating factors.

The cost of insurance will also vary from person to person as everyone’s situation varies as a policyholder. Several factors about yourself and your condo unit influence premiums, from your location to your claims history.

As a result, you won’t know your exact premium until you get a quote. But, looking at the numbers wholly, we’re able to depict the average cost of condo insurance in New Jersey at different coverage amounts.

The cost of condo owners’ insurance in New Jersey rises as the desired coverage amounts increase. You’ll only need $100,000 or more in condo coverage if you’ve got a very expensive unit or several highly valuable belongings. Most people will make do with $20,000 to around $75,000 in coverage, so you’ll likely pay between $32 and $47 per month for your policy.

Even at the highest coverage levels, condo insurance in New Jersey is notably cheaper than homeowners insurance in the state. Traditional homes cost more to cover since homeowners must insure the entire structure, whereas condo owners only need to focus on their units. 

Condo insurance in New Jersey is referred to as HO-6 insurance by providers. HO-6 policies are designed for condo unit owners. They cover personal belongings and certain features from possible sources of damage known as perils. Common covered perils are:

Condo insurance also financially protects your liability in several ways. Your policy lays out your coverages in different sections as follows:

You should understand your coverage needs and identify a budget to get the best condo insurance in New Jersey. Once you know what you need and how much you want to spend, you should compare quotes and plans from a few different providers.

To determine how much condo insurance you need, you should take a look at your condo board’s master insurance policy. You should also understand typical coverages and exclusions so you can adjust your policy if needed.

As condo owners share ownership of their buildings and grounds, they also share insurance needs through the homeowners association (HOA). Every condo association has an insurance policy to cover common areas and amenities. Unit owners help pay for this policy through their HOA dues.

The type of coverage your association has can influence your personal condo insurance needs. There are generally two types of New Jersey HOA insurance: walls-in and walls-out (or bare walls) coverage.

Having walls-in or all-in coverage means the HOA plan covers some features in your unit, like countertops, large appliances, and other features that are there when you move in. With walls-out coverage, your association policy covers nothing in your unit.

You still need your own condo insurance despite the master policy. If you live in a condo with walls-out coverage, dwelling coverage in your personal condo policy becomes much more important. 

Knowing your coverages and exclusions can help you identify gaps in your policy that you can sometimes fill with an endorsement or optional coverage offering. Endorsements cost extra, but they can come in handy if you can fit them into your budget.

For example, personal property coverage in condo insurance has sub-limits for valuable possessions like jewelry and artwork since one high-end item can sometimes be worth tens of thousands. You can schedule certain costly items to cover them in your policy fully.

You can purchase endorsements for water backup, home-based businesses, and more. 

All insurers generally offer the same coverages in their condo policy. But, their prices will vary for several reasons. Some actionable tips to help you find cheap condo insurance in New Jersey are:

Shopping around lets you compare rates from different providers. It’s the best way to ensure you get the best deal. You can also compare discounts, endorsement pricing, and customer service.

Insurance companies offer a range of discounts, and you should ask how you can qualify. You may get a discount based on your retirement or military status. Many companies offer discounts for having home security systems also. You can also bundle your policies to save 10% to 20% on your premiums.

Although your provider may have some suggestions, you ultimately determine your coverage limits when getting a policy. We don’t recommend springing for the minimum amounts in all areas to save money, but you can ensure you’re not overpaying for coverage. 

Make a home inventory list identifying every belonging and how much you paid for each item. The grand total is the amount of personal property coverage you need. You’re technically overpaying for unneeded insurance if you get more than what your things are worth. 

You can also adjust your liability limits. Most people will suffice with somewhere between $300,000 and $500,000 in liability coverage. Consider higher limits if you have a large dog or a million in assets. 

Also, loss assessment and dwelling coverage are often optional in HO-6 insurance. You will save money if you bypass these coverages, but consult your company or agent to see if this is the right move first.

You can also change your deductible. An insurance deductible is the amount of money property damage must exceed before your insurance company will cover the bill. These are in place so policyholders don’t file a claim for every small damage incident, or else companies would be paying out too much, and costs would increase for all.

You choose your deductible when you get a policy. Opting for a higher deductible means taking on a larger responsibility of paying for property damage yourself. Since this would lower a possible insurance payout, this will lower your monthly premiums.

HO-6 condo insurance in New Jersey costs about $38 per month. As we’ve mentioned, several variables affect the cost of condo insurance, like your location and building characteristics.

Your building’s location changes its susceptibility to damage. Condos near New Jersey’s Atlantic coast may have higher premiums because they’re more likely to experience wind or flooding damage. Some unit owners in high-crime areas may have higher rates due to increased chances of theft or vandalism. Conversely, buildings near fire hydrants or stations can have lower premiums since the chances of a fire spreading are lower.

Older buildings can have higher premiums due to increased wear and tear, leading to issues. Older structures can also have outdated elements like leaky roofs or faulty pipes that can exacerbate property damage. These can raise rates as they make buildings riskier.

Insurers will also ask you about your claims history. Someone who has filed several claims in the recent past will likely have higher insurance rates than someone who has never filed. Insurers consider many property claims a red flag.

No law requires condo insurance in New Jersey, but mortgage lenders and some condo associations can require condo insurance as part of their loan and move-in agreements.

If you bought your condo with a mortgage, you’ll need HO-6 insurance. Lenders mandate loanees keep insurance coverage on their units for the life of their loans. This protects the lender’s investment. If something catastrophic happens to your condo, you and your lender can get your money back through the insurance policy.

Condo associations sometimes require insurance before allowing new residents to move in. It helps the board limit their liability if condo unit owners maintain personal coverage in addition to the master policy.

Getting multiple condo insurance quotes in New Jersey when shopping for coverage is essential. You can see which companies have the best plans for you at the best price.

At Clovered, we want to make your insurance shopping experience easy. Use our online quoting platform to compare plans from top providers in your area for free on your own time. As an independent insurance agency, we partner with some of the top condo insurance companies in New Jersey to bring you rates at the price you need.

Our team of licensed agents is also happy to assist you with whatever you need. Call us at 833-255-4117 during business hours with questions or for quoting help. You can also email us at [email protected].