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Landlords can purchase renters insurance in New Jersey, but they don't have to do so. In fact, most landlords stick with landlord insurance. However, it might also be wise to require tenants to get renters insurance to protect their possessions.
Today, you'll learn what renters insurance is, the cheapest renters insurance companies in New Jersey, and what they typically cover. This will help you explain the benefits of renters insurance to your tenants. Plus, you'll learn how DoorLoop can help tenants find a renters insurance company. Let's dive in!
What Is New Jersey Renters Insurance?
Renters insurance in New Jersey is a type of insurance covering various unexpected events. It's for the tenant, though there are circumstances when a landlord can purchase it, as well.
This insurance offers personal property coverage, additional living expenses, and liability coverage. Usually, it's broad enough to help in many situations.
However, it's crucial for tenants to know what they're buying and find the best renters insurance companies in New Jersey. We'll cover all of these things in this article, but you can also read the consumer guide from the NJ government website.
Average Cost of Renters Insurance in New Jersey Per Month and Year
The cost of renters insurance in New Jersey is about $9 per month, which is $106 per year. The average price people pay is typically $15 per month or $184 annually.
Renters in New Jersey typically pay 13 percent less for renters insurance than the national average, which is $18 per month or about $215 per year.
However, the quote can depend on many factors, such as the tenant's age, their insurance history, the location of the property, and the amount of coverage they select.
How Much Does Renters Insurance Cost (Based on Popular Cities)?
According to Value Penguin, renters insurance in New Jersey can vary significantly based on the city. Those in Clifton and Franklin Park will have cheaper options than those in Newark, who will pay more per month than normal. Here are a few examples:
- Brick - $184/year
- Bayonne - $184/year
- Clifton - $148/year
- Cherry Hill - $173/year
- Camden - $192/year
Does the State of New Jersey Require Renters Insurance?
It's important for landlords to write requirements for renters insurance in New Jersey in their leases because it can protect them in many ways. You'll learn about those later.
However, is renters insurance required in New Jersey? The state and federal laws do not say anyone must get renters insurance in New Jersey, though it will be considered the rule if it's listed in your lease.
Typically, landlords and property managers will require proof of the policy before signing the lease and will ask for proof of insurance before renewing it.
Landlords typically do this because they want to make sure the tenant has enough personal property coverage and personal liability within the renter's policy. This protects the tenants and the landlord.
In some cases, you can request that the tenant include you as an interested party. This will tell you if the policy was canceled or changed.
What Does Renters Insurance in New Jersey Cover?
Generally, renters insurance in New Jersey will cover these things:
Personal Property Coverage
Personal property coverage is what protects your stuff, regardless of where you are. In fact, the items don't have to be in the house. If your phone is stolen while you're at the store, you're covered with renters insurance in New Jersey.
Liability Protection
What happens if you're hosting a dinner party and your friend trips over a toy your kids left in the way? If anyone gets injured on the property or anyone listed in your policy damages another person's property, renters insurance in New Jersey should cover that.
Loss of Use
Let's say you have to leave your residence because of a covered loss, such as a windstorm or fire. Renters insurance in New Jersey comes with loss of use coverage to reimburse you for additional living expenses, such as hotels, parking, laundry, meals, and more.
Medical Payments
If your friend slipped and fell while on your property and had to go to the hospital, renters insurance in New Jersey covers medical expenses. This will happen if you injure someone outside the home or if a guest gets hurt at your home.
However, renters insurance in New Jersey will not cover any medical payments if you or someone on the policy gets hurt. It only applies to visitors and non-residents.
What Does Renters Insurance in New Jersey NOT Cover?
Make sure your tenants know they should read the full policy to determine what's covered and not covered. Typically, most renters insurance products won't automatically cover natural disasters, such as tornadoes, hurricanes, and thunderstorms. The tenant may require riders or additional coverage to protect them in those situations.
How to Choose the Right Policy
In most cases, tenants will want just enough renters insurance to satisfy your requirements as the landlord. They're focused more on price, but you should remind them that the coverage will protect them in case there's a covered loss.
Therefore, tenants should shop around to see what coverage options are available. They may also want renters insurance that pays the full replacement value for a covered event. Regardless, they must determine what they need based on your demands and also what will protect them and help them replace any damaged items.
Usually, it's tempting to pick the lowest price and move on. However, remind your tenants that comparing companies will help them find the best coverage and deal. Personal property is all the items in the rental, such as furniture, electronics, clothing, appliances, and decor. There's also personal liability, which covers the tenant if they damage property or hurt someone.
It's also wise to remind tenants that the renters policy may include optional coverage additions that they can use to customize the protection.
Available Discounts in New Jersey
Usually, renters insurance is inexpensive, but tenants can save money when they use the discounts available from the company. In some cases, discounts can easily be stacked together, which brings in more cost savings.
Discounts tend to vary by company, but here are the most common options:
- Having no claims for a specified time frame
- Bundling multiple policies together through one carrier
- Going paperless
- Being affiliated with a specific institution or organization
- Setting up automatic payments
- Paying in full annually
- Installing protective devices, including a burglar alarm, fire alarm, or interior sprinkler system
How Does a Renters Insurance Policy Protect the Landlord or Property Manager?
As the landlord, you can require tenants to have renters insurance, and it's wise to do so. In fact, it can protect you by:
- Reducing Risks of a Lawsuit - Usually, the liability policy from the landlord's insurance won't cover tenants if someone is injured or property is damaged because of that person's negligence. Therefore, tenants should have renters insurance to protect their personal items from loss and damage and cover personal liability for injuries sustained on the property.
- Helping with Relocation Expenses - In New Jersey, landlords could be responsible for tenant relocation after a natural disaster or fire. Most renter's policies help with temporary living costs, which can save you money.
- Protecting You from Property Damage - If the tenant wasn't at fault for damage to their property, they could sue you for the damages. Your insurance probably won't cover that situation, but their renters insurance could.
- Allowing You to be a Pet-friendly Landlord - Roughly 68 percent of all US households own pets, so landlords who accept them will have more applicants. Renters insurance can mitigate the risk of pets with property damage coverage and dog-bite liability.
- Reduced Chances of Higher Insurance Premiums - If you must make a claim against your landlord insurance, you might have higher premiums or a canceled policy. Renters insurance through the tenant might cover a portion or all of the loss, which can reduce your risk of higher premiums.
Top 5 Best Renters Insurance Companies in New Jersey
Are you ready to find the best and cheapest renters insurance company in New Jersey? Here are the options:
1. Lemonade Renters Insurance
Lemonade offers the best renters insurance possible. It costs roughly $9 per month, which is highly affordable.
Usually, when you get the cheapest renters insurance, you don't have good customer service. However, that's not the case with Lemonade. The company has received few complaints in the past, and JD Power actually awarded the brand as the best in customer service.
A basic policy will offer standard coverage, which you'd expect from a policy. However, Lemonade doesn't provide many options for adding coverage. Still, renters can buy extra protection for their valuable items, replacement cost coverage, equipment breakdown coverage, and sewer backup coverage. There is no flood protection, which could be an important requirement for those living on the coast.
2. State Farm Renters Insurance
College students who live off-campus and apartment renters might like State Farm. It's one of the best renters insurance companies in New Jersey because it's so affordable.
Though it works for any type of dwelling, we've found that the cheapest rates are for apartment renters. The basic policy here will cost $10 per month.
Renters can enjoy the excellent customer service from State Farm, as well. The company doesn't have many complaints against it, and most renters seem happy with their customer service experiences.
However, there is a downside. State Farm doesn't offer many discounts. Though renters can lower their rates by buying a security system or insuring their car as well as rental, there are no incentives for making automatic payments or staying claim-free.
3. Amica
Amica might not be one of the cheapest renters insurance companies out there, but it is a great choice for renters who care more about customer service than anything else.
It's important to have good customer service because when renters must file a claim, they want to talk to a live person and get assistance quickly.
In fact, Amica could be the best renters insurance company out there because it doesn't have many complaints from renters. Still, the cost is more expensive than the average for coverage. However, you can save money with the:
- Paperless discount
- Multipolicy discount
- Loyalty discount
- Claim-free discount
- Automatic payment discount
4. Allstate
Allstate could be a cheap renters insurance company, especially for a senior 55 years or older. Plus, renters can get scheduled personal property for their high-value items. Likewise, identity theft restoration is available from a renters insurance policy.
While there are few discounts, seniors can save about 25 percent, depending on their coverage amounts. Renters will also enjoy the great customer service available when they call. However, there is a mobile app they can download or can visit the online website to track and file a claim, view policy documents, and pay bills.
5. American Family
American Family offers cheap renters insurance in New Jersey. If renters have pets, run businesses from home, or travel frequently, it provides optional coverages. In fact, renters can get identity theft coverage added to the insurance policy and tailor it to meet their specific needs.
Likewise, American Family has the best renters insurance because of the diminishing deductible. Every year the renter is claim-free, they will get $100 knocked off the deductible they'd owe when they do make a claim. Some people increase their deductibles to lower their premiums paid each month, as well.
Regardless, renters will like the customer service they receive. However, there's a cap for jewelry, and roommates aren't typically covered. Therefore, they would require their own policy.
What Is DoorLoop?
DoorLoop is an excellent option when you want an all-in-one property management solution. As a landlord, you might work primarily with commercial or residential properties. Some will have mixed-used portfolios, and DoorLoop will help them manage things. You'll get these benefits:
- Collect rent automatically.
- Create rental agreements
- Manage all of your accounting needs.
- Build a customized website for free to help you market vacancies through Zillow or Trulia. Also, allow your tenants to apply online.
- Provide a tenant portal to take payments or make management requests.
- Manage maintenance requests more easily so that tenants don't have to call or text you.
Does this sound exciting? You can schedule your demo or learn more about DoorLoop by clicking here.
Why Work with DoorLoop
Tenants don't want to take the time to research renters insurance in New Jersey, but that's okay. You can help them by showing them this article so that they can learn more about it.
DoorLoop can also help you require tenants to have a personal renters insurance policy. They could apply for renters insurance through the tenant portal or on the tenant application, which is powered by Lemonade or SURE, depending on where you live. Likewise, they can submit their preferred company. Are you interested in this feature? Learn more here!
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