NJ Rates
Take a good look at your home. It is not just what you see above ground that affects your homeowners insurance NJ rates. There may be things underground that make a difference, too.
Old in-ground oil tanks are a problem in New Jersey.
Many homes in New Jersey were originally set up with in-ground oil tanks for fuel. It is possible to find out from building records whether your home ever had this kind of system. Once you find out, you need to notify your insurance company.
The in-ground oil tanks can cause environmental hazards if they deteriorate or leak. The clean-up could by a huge liability. Some homeowners’ insurance companies do not cover homes with this kind of system at all.
If you can find a company that does cover them, you will learn that the rates will be higher to accommodate the risk. The best thing to do will be to be proactive – have the tank removed and cleaned up.
In-ground swimming pools may cause rate increases, or not.
If you are getting ready to install an in-ground swimming pool, you may wonder about insurance. You will be happy to find out that many homeowners’ insurance NJ rates are not affected. Most of the companies cover the swimming pools automatically.
You should always inform the insurance agent, however. There is indeed an increased liability when you have a swimming pool on your property. Because insurance companies take on this risk, they might add a few dollars more to your insurance rates.
The cost of increased rates, if there is any, is so minimal that it is usually not worth changing to another insurance company. The most important thing is to let your company know you have the swimming pool. It would be a shame to assume that you had coverage and then find out after an accident that you did not have it.
Recent floods have sent homeowners looking to their insurance companies for help.
In April of 2007, New Jersey saw heavy rains that caused homeowners a lot of grief. Basements were flooded all over the state. Homeowners often expected their insurance companies to hand over the money to fix the problem. It did not happen.
Homeowners insurance does not cover floods where water rises after rains. No amount of hiked up rates will change that. If you want that kind of coverage, you need to get a different type of insurance, called flood insurance.
If you have a burst pipe that causes water damage, the insurance should cover it. Your homeowners’ insurance NJ rates should not go up unless you have numerous claims for it over a period of time.
The best thing you can do about in-ground liabilities around your home is to be upfront about them. Your agent will adjust your homeowners’ insurance NJ rates. The difference in most cases will be small.