Homeowners Insurance in Cherry Hill, New Jersey

 Cherry Hill is an edge city in New Jersey popular for its manageable distance to several Northeast hubs. Whether you work in the city or commute to nearby Philadelphia, Camden, or Trenton daily, you should ensure your home is always secure.

Protect your property financially with homeowners insurance in Cherry Hill. In this guide, we explain everything you should know to find the best coverage. Read on below.

The average cost of homeowners insurance in Cherry Hill is about $1,222 annually, although rates can range from $800 to $1,601 due to several factors, like your provider, home value, and more.

The statewide average premium for home insurance in New Jersey is about $1,123 yearly, so Cherry Hill rates are right on par with the state average. This isn’t bad news; New Jersey regularly ranks among the cheapest states for home insurance in the nation. You may be able to find coverage for under $100 monthly, which residents in many Atlantic coastal states can only dream of.

Several factors affect homeowners insurance premiums, though; you’ll likely pay more for coverage if you have an expensive home. Your home’s value is a primary component of insurance premiums. Carriers assess your house’s replacement cost, which is the potential cost to rebuild your property based on construction expenses, to determine how much coverage you need.

According to the New Jersey Construction Reporter’s annual government report of 2022, the average selling price of a home in Camden County was around $486,000. Whale market value isn’t the same as replacement cost, larger, nicer houses cost more to rebuild and, thus, more to insure. 

As construction and selling prices rise over the years, insurance rates rise, and you may need higher coverage limits. The following table lists average home insurance rates in Cherry Hill at three common home values.

Many factors other than home value affect rates, and we’ll break down several more important ones later. Home insurance premiums are complex, and you won’t know exactly how much you’ll pay for coverage until you get quotes.

“Home insurance” is a general term for several types of insurance coverage you can get for your property. The most common type of homeowners insurance is officially called the HO3 policy form. All HO3 plans include six general coverage areas.

Getting the best homeowners insurance in Cherry Hill requires an understanding of your coverage needs and budget. Every policyholder differs, so you may need to adjust your plan in a few ways when quoting, such as changing your policy limits or adding endorsements.

Each coverage section in your policy has its own possible maximum payout. It’s normal to adjust these to suit your coverage needs.

Providers will give you suggestions for each coverage limit based on the information you provide, but no one knows your property as well as you do. For instance, you can select a dwelling coverage limit between 80% and 100% of your home replacement cost. Increasing your dwelling limit will give you a more comfortable budget when rebuilding after major property damage, but it will also raise your premiums.

We recommend making a home inventory to determine the precise amount of personal property coverage you need. Also, you should have at least enough liability coverage to guard your financial assets. If you have $300,000 in assets, including your home equity, cash, and other valuables, you should have at least $300,000 in liability coverage. Most companies let you raise your liability limits to $1 million if needed.

Home insurance policies protect your property from over a dozen perils, from hurricanes to fire to theft. Sometimes, the default protections may not be sufficient for your property or belongings, and you can purchase endorsements for extra coverage.

Endorsements are optional coverage add-ons for additional coverage for certain items or against specific perils. For example, you can get scheduled personal property coverage to fully insure expensive valuable jewelry, artwork, or memorabilia that exceeds standard personal property coverage sub-limits of $2,500 or $5,000.

In Cherry Hill, where basements are common, you may also want to consider water backup coverage. Standard home insurance excludes damage from unexpected water backing up into your home through drains, pipes, or sump pumps. Water backup coverage can help with this.

Once you know what you need in your policy, you should do what you can to save money on Cherry Hill home insurance. Two easy ways to reduce your premiums are raising your deductible and shopping around for the best deal.

Every home insurance policy has a deductible, which is an amount you must pay when filing a claim before your insurer picks up the rest of the bill. Deductibles prevent policyholders from constantly filing claims for small bits of damage.

Typically, deductibles range from $500 to $2,000. You choose your deductible when quoting. If you pick a deductible on the higher end of the range, you’re electing to cover a greater part of a claim out of your own pocket. Naturally, your insurer prefers this, as it reduces their financial responsibility. This decreases the financial risk you represent and lowers your monthly premiums.

The most proven way to save money on homeowners insurance in Cherry Hill is by comparing quotes from several companies. Carriers have different pricing methods and business needs, causing rate differences among the industry. You won’t know which carrier has the cheapest home insurance until you shop around.

Shopping around will also enable you to compare other aspects of a provider that impact your final decision, like the number of possible discounts, availability of endorsements, and customer service.

While on the topic of protecting your home, we want to mention flooding. Flood damage, which can be caused by heavy rainfall, melting snow, overflowing rivers, or mudslides, is excluded from homeowners insurance coverage.

If you’re concerned about damage from these sources, you need a separate policy for flood insurance in Cherry Hill. Some properties in the township near bodies of water, such as the Cooper River, are in federally designated flood zones. You can check your flood zone on the city’s website.

The Federal Emergency Management Agency (FEMA) maintains flood risk maps for the country and also distributes subsidized flood insurance through the National Flood Insurance Program (NFIP).

The NFIP is the largest flood insurance provider in the nation, but you may want to explore your options among a growing number of private flood insurance companies. 

Insurance companies are in the business of managing risk. Many factors influence homeowners insurance rates in Cherry Hill, as companies try their best to assess the risk of every property they cover. Some of the most important considerations companies examine include:

Companies will always ask about your home’s age and square footage. Older homes usually cost more to insure, as dated components, such as roofs, pipes, and siding, are more prone to damage. As we mentioned earlier, larger homes usually cost more to insure, as they cost more to rebuild.

Companies will also want to know about many of your property’s features. For instance, attractive nuisances, like pools, trampolines, and playground equipment, increase your liability risk and usually raise premiums. 

Conversely, having burglar alarms or deadbolt locks lowers your rates. Living within a certain distance of a fire hydrant will also reduce premiums.

Carriers are also interested in your claims history. They believe someone who has filed several claims in the recent past is more likely to file again than someone who never has. If you’ve filed multiple claims in the past three to five years, expect to pay higher premiums for Cherry Hill property insurance. 

Your policy details also directly impact rates. Opting for endorsements and higher coverage limits increases insurance costs, while raising your deductible and qualifying for discounts can lower premiums.

No law requires home insurance in Cherry Hill, but that doesn’t mean you won’t need a policy. Most homeowners have mortgages, and mortgage lenders mandate home insurance as a condition of their home loans.

Your mortgage is an investment to your lender, and, like any financial institution, they will want to protect their investment to ensure they can get some sort of return on it in case something happens to your house.

If your home got destroyed by a fire, hurricane, or other covered peril, the insurance policy will reimburse your lender just as it would pay you. All parties are protected.

If you pay off your mortgage or buy your home with cash, no one will be requiring you to carry Cherry Hill home insurance. However, we never recommend forgoing insurance coverage. You’re putting yourself at immense financial risk if you do. 

After all this information, you’re probably ready to start gathering home insurance quotes in Cherry Hill on your own. Or you might still want a little help, especially if you’re a first-time home buyer. At Clovered, we can help you either way.

You can use our online quoting tool to compare your options and potentially bind a policy on your own time entirely online. You can also chat with one of our licensed agents on the phone by calling 833-255-4117 for a quote. Our team is on standby waiting to help you.

You can also email us at [email protected] with any questions.