New Jersey High Risk Homeowners Insurance

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High Risk Homeowners Insurance In New Jersey

New Jersey, often referred to as the "Garden State," is a state located in the Mid-Atlantic region of the Northeastern United States. It is bordered on the north and northeast by New York, on the east and south by the Atlantic Ocean, on the west by Pennsylvania, and on the southwest by Delaware. New Jersey is notable for being one of the smallest states in terms of area but one of the most densely populated in the United States. The state has a diverse geography that ranges from cities and industrial areas to picturesque beaches and rural farmland.

Historically, New Jersey has played a significant role in the United States' early development. It was the site of several pivotal battles during the American Revolutionary War and was the third state to ratify the U.S. Constitution. The state's industrial cities contributed significantly to the nation's manufacturing base in the 19th and early 20th centuries.

When it comes to risks, New Jersey faces a variety of natural and human-made hazards that could potentially cause home insurance losses:

Hurricanes and Tropical Storms: Given its location along the Atlantic coast, New Jersey is susceptible to the impacts of hurricanes and tropical storms. These can bring strong winds, heavy rain, flooding, and coastal storm surges. Superstorm Sandy in 2012 is a prime example of the devastating effects a hurricane can have on the state, leading to widespread property damage and a significant number of home insurance claims.

Flooding: Apart from storm surge flooding during hurricanes, New Jersey can experience significant inland flooding due to heavy rains and snowmelts. Areas near rivers and low-lying regions are particularly vulnerable. Flooding can damage homes, leading to substantial insurance claims.

Winter Storms and Nor'easters: New Jersey winters can be harsh, with snowstorms, blizzards, and nor'easters causing widespread damage. These winter weather events can lead to roof collapses, frozen pipes, and other property damage.

Wildfires: While not as common as other types of disasters, New Jersey, particularly its Pine Barrens region, can be susceptible to wildfires, which can threaten homes and lead to insurance claims.

Earthquakes: Although New Jersey is not known for frequent or large earthquakes, it is still at risk. Small tremors can occur and have the potential to damage structures.

Specific large events in the past 30 years that have led to a significant volume of home insurance claims include:

Superstorm Sandy (2012): This was one of the most catastrophic events in New Jersey's history, causing widespread destruction along the coast and inland. It was the second-costliest hurricane in U.S. history at the time, leading to tens of billions of dollars in damage and a massive number of insurance claims.

Blizzards and Nor'easters: Various winter storms, such as the Blizzard of 1996 and more recent nor'easters, have caused significant damage through heavy snowfall, flooding, and high winds, leading to numerous insurance claims for property damage.

Hurricane Irene (2011): Before Sandy, Hurricane Irene caused significant flooding and damage in New Jersey, particularly in inland areas, leading to a large number of home insurance claims.

Understanding these risks is crucial for residents when purchasing home insurance and for preparing for potential disasters in New Jersey.
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Unable to Obtain Coverage?

Many consumers opt to allow their mortgage companies to add “force placed” or “lender placed” coverage to their homes. The unfortunate issue is that many times the mortgage companies do not make it clear that typically these policies  do not cover your personal property, loss of use or even your liability. They are typically insurance policies that the consumer pays for, that mostly benefits a bank and not them. It is without a doubt that mortgage forced policies are the lease safe option in the market.

Since FAIR Plans are considered the market of last resort, consumers will be best served when they find an agent with the experience in high risk insurance as well right resources and carriers. Ultimately the end goal is to obtain the right coverage at a competitive price and with the right agent that can be accomplished in almost any situation.
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**The contents of this website are provided for informational purposes only and do not constitute legal or coverage advice or an offer or solicitation for the sale or purchase of insurance. If you submit a request for a quote you will be contacted by a licensed agent who can discuss coverage options with you. Consumers are urged to try to find coverage in the private market and we can help you find an agent that can help you find alternatives to the FAIR Plan and other high risk plans. This website is no way affiliated with or sponsored or endorsed by any federal, state or local governmental agency or state fair plan. Insurance coverage not available in all states. **
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