Insurance Requirements for Your State

Insurance Requirements for Your State

The importance of keeping up with a quality home insurance policy goes beyond just protecting your valuable home and the possessions within. Depending on the state you live in, maintaining a home insurance policy may be a legal requirement. In addition, most banks and home loan lenders require you to maintain a home insurance policy or you risk violating the terms of your loan agreement. Understandably so, without a protective policy in place, a serious incident such as a fire or burglary could result in thousands of dollars in damage and would severely impact your ability to repay the loan or repair the home. 

Now that you understand just how important it is to maintain your policy, let’s talk about the mandatory and optional home insurance requirements in states like Pennsylvania and New Jersey. 

Important Home Insurance Considerations for Pennsylvania

According to the Pennsylvania government, it is not legally required to maintain a home insurance policy or renters insurance in the state. But keep in mind, the majority of banks and lenders in Pennsylvania will require you to maintain a policy by your loan agreement. 

Due to the relatively lower risk of natural disasters and other perilous factors in Pennsylvania, you can expect to find annual rates around ~$700-800 for a home valued at $250,000, which is significantly lower than the national average of ~$1,300 a year. That price may vary if you own expensive assets or would like additional types of protection, and our claims adjuster in Doylestown can review your policy for free and help you decide if you need more or less coverage.

Home Insurance Basics in New Jersey

Like Pennsylvania, homeowners and renters are not legally required to maintain an insurance policy in New Jersey. The requirements for keeping up with a policy will come from the banks and lenders. Also, every issued insurance policy in the state must be accompanied by a brochure outlining the hurricane deductible program, flood insurance, and a summary of all coverage and exclusions by New Jersey state law. 

While certain banks and lenders in the state may only require “dwelling coverage” which protects the value of the building itself, this can leave you exposed to a potential liability lawsuit or responsibility for an individual’s medical bills if they are injured on your property. It’s always better to go with a plan that covers the structure, possessions, and personal liability so you are proactively protected from all of life’s unexpected accidents. 

Prepare for Any Home Incident With Helpful Guidance

Whichever state you live in, regularly reviewing your policy and ensuring that your level of coverage is adequate will prevent issues with your insurance company if property damage or loss occurs. Before a potentially costly home incident occurs, you can reach out to our NJ insurance adjuster for a complimentary policy analysis. If property damage has already happened, ask about our professional assistance with property claims, appeals, and in-person damage appraisals.

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