Homeowners Insurance in Lakewood Township, New Jersey

Your home is likely one of the most valuable investments you’ll make in your life, signifying much more than just a place to live. Since Lakewood Township is one of the fastest-growing municipalities in New Jersey,  owning a home is even more valuable than usual.

You should protect your house from anything that can threaten it, and a home insurance policy is the best way to achieve this financial safety. Learn average rates, cost factors, and more about homeowners insurance in Lakewood Township below.

The average cost of homeowners insurance in Lakewood is about $1,310 annually, although many factors affect rates, such as home value. 

The average cost of home insurance in New Jersey is around $1,123 annually, so Lakewood premiums are higher than the state average. This can be due to many factors, such as home value. The following table lists average premiums for houses at some typical valuations.

Your house’s value is one of the primary factors in home insurance rates because carriers need to know your replacement cost. Your home’s replacement cost is the amount of money necessary to rebuild your home based on construction and labor expenses. Bigger, nicer homes cost more to rebuild and more to insure. Based on our findings, the average replacement cost in Lakewood is just under $309,000.

All Lakewood home insurance plans contain the same coverage areas, regardless of which company provides the policy. Homeowners insurance protects your property and belongings from different sources of damage called perils, with the most common perils being hurricanes, fires, and theft. 

Plans normally contain six distinct coverage areas, outlined below.

The best homeowners insurance in Lakewood Township will sufficiently cover your home, belongings, and liability at an affordable price. Needed coverage will vary by person, as every home and policyholder differs.

Instead of suggesting one “best” insurance company, we recommend taking your protection into your own hands by customizing your policy and shopping around for the best rates. 

Every home insurance policy covers your property from over a dozen possible sources of damage called perils. Recognize how and when your policy covers you, and purchase endorsements for extra protection if needed.

Endorsements are optional coverage add-ons that expand coverage to certain perils or items not included by default. For example, you can get coverage for water backup and sinkholes. You can also purchase coverage for especially high-value items, home-based businesses, and identity theft. Assess your endorsement options and your property’s risks to deem necessity.

You can also adjust your policy limits to tailor your plan to your circumstances. We recommend creating a home inventory to determine the precise amount of personal property coverage you need for your possessions. You should also have enough liability coverage to guard your assets, which is at least $300,000 for most people. You can increase your liability coverage up to $1 million at most carriers.

Once you know what coverage you need, you should compare quotes from multiple companies to see which carrier offers you the plan you want for the best price.

Every company has different ways of underwriting and business strategies that produce variations in premiums for the same amount of coverage. You should always check multiple options to find the cheapest carrier for you.

Discounts will also vary by company. Always ask about the discounts you can receive. And, you can always consult a Lakewood home insurance agency for further assistance on your search if needed.

While we’re on the topic of protecting your home, we thought it was a good time to mention that flood insurance is never a part of home insurance. Homeowners insurance always excludes flooding, and you’ll need a separate policy if you’re concerned about possible flood damage in Lakewood.

While Lakewood doesn’t have many high-risk flood zones, major thunderstorms have caused flood damage in the past. Unfortunately, no property is impervious to flooding. Every county in America has experienced at least one flood event in the last three decades.

The National Flood Insurance Program, administered by the Federal Emergency Management Agency (FEMA), is the largest flood insurer in the nation, responsible for about 90% of all flood policies. You can also check rates and availability from a growing number of private flood insurers for flood insurance in Lakewood.

The average cost of homeowners insurance in Lakewood Township ranges from $848 to $1,696. Insurers weigh many factors to determine your rates, such as:

Home Age: Older houses tend to have more wear and tear, and older components, like roofs, siding, and pipes, are more likely to fail during severe weather and cause property damage. Older homes typically have higher rates than new houses.

Home Construction: Insurers consider the materials of your home. For example, masonry houses made of brick or concrete withstand wind and fire damage better and may have lower rates than wooden frame homes. 

Home Location: Houses in damage-prone areas, such as flood zones and high-crime neighborhoods, are more likely to suffer damage and have higher insurance premiums. Conversely, homes near fire hydrants, stations, or gated communities can receive discounts.

Companies will also consider factors other than your home’s characteristics, such as personal and policy details.

Claims History: Carriers believe people who have filed several claims in the recent past are more likely to file another than someone with a clean claims record. Companies ask about prior claims when you get quotes, and you may have higher rates if you’ve filed several in the past three to five years.

Policy Details: Raising your coverage limits and opting for endorsements increases the amount of insurance you have and raises your premiums. Alternatively, qualifying for discounts and raising your deductible can lower your Lakewood homeowners insurance rates.

Personal Factors: Your marital status, age, and credit history can all impact premiums. For instance, you may qualify for a discount if you’re over a certain age or retired. Although not all companies consider credit scores, people with good credit scores are historically better at making payments and are less of a financial risk to insure, and they can receive lower premiums.

The only entity that can require homeowners insurance in Lakewood is your mortgage lender, as they typically mandate home insurance for the duration of their loans. No law requires home insurance.

Lenders require home insurance to protect their investments. Lenders regularly put down hundreds of thousands or more to help fund home purchases. If the house gets destroyed, the property owner and lender can receive reimbursement from the insurance policy.

If you pay off your mortgage or buy your home with cash, no law requires you to maintain home insurance. However, we don’t recommend bypassing insurance protection. You’d be personally responsible for any property damage you sustain, which is very perilous.

We’ve underlined how important it is to get several home insurance quotes in Lakewood before binding a policy. Never settle on the first quote you get; otherwise, you may be overpaying for coverage. Our team of insurance agents at Clovered can help you compare and confirm the policy you need at the price you want.

We’re an independent insurance agency, meaning we partner with several companies and can bring you the best policy for your situation. Chat with our agents over the phone for a Lakewood home insurance quote at  833-255-4117 during business hours.

Or, you can compare quotes on your own time using our online quoting engine. It only takes a few minutes to put in your property information and start shopping. You can also reach us by email at  [email protected].