New Jersey Landlord Insurance

Find the Best Landlord Insurance Rates & Companies in New Jersey 

Although New Jersey is one of the smallest states in the country, it's the most densely populated of them all. Situated within the sprawling metropolitan regions of New York City and Philadelphia, it's also one of the nation's wealthiest states. All of this combined creates a strong environment for rental housing. Many homeowners in New Jersey choose to rent out their properties to tenants, which presents the need for protection offered by landlord insurance. 

Luckily, an independent insurance agent in New Jersey can help you find the right kind of landlord insurance. They'll ensure you get matched to the ideal policy for your unique needs. But first, here's a closer look at New Jersey landlord insurance requirements, costs, and more.

Best Landlord Insurance Companies in New Jersey

Many insurance companies in New Jersey sell landlord insurance, but not all coverage is created equal. That's why we've included some of our picks for the best landlord insurance companies in New Jersey for you. When you're ready to find a policy, check into these outstanding carriers first.

1. Progressive: This insurance company sells landlord insurance and many other types of personal insurance and business insurance. Progressive has outstanding financial strength, many discount options, and offers 24/7/365 customer service.
2. Stillwater Insurance Group: This insurance company sells landlord insurance and many other types of personal and business insurance. Stillwater has excellent ratings from AM Best and the Better Business Bureau (BBB), offers 24/7 claims reporting, and offers coverage nationwide.
3. The Andover Companies: This insurance company sells landlord insurance and many other types of personal and business insurance. The Andover Companies have excellent ratings by both AM Best and the BBB, good customer feedback, and several discount options.

A New Jersey independent insurance agent can help you shop and compare landlord insurance quotes to find the policy that's best for you.

What Is Landlord Insurance?

Landlord insurance can be thought of as similar to homeowners insurance and other kinds of property insurance because you pay a premium to your insurance carrier in exchange for various types of coverage. Your policy can offer reimbursement if you have to file a landlord insurance claim for the occurrence of a covered peril, such as a fire, break-in, or tenant damage at the property that you rent out.

How Is Landlord Insurance Different from Home Insurance?

Landlord insurance isn't exactly the same as home insurance. Because tenants are much more likely to damage property than homeowners are, the coverage landlords have must consider this increased risk. 

Further, landlords have certain other risks that homeowners don't, such as the potential loss of income if they can't rent out their property for a period of time. Because of this, landlord insurance needs to include certain aspects of business insurance that a homeowners insurance policy doesn't offer.

Is Landlord Insurance Required in New Jersey?

Yes, landlord insurance is required by law in the state of New Jersey. This law was passed only a couple of years ago and mandates that landlords must at least carry liability insurance in the amount of $500,000 or greater if they rent out condos or apartment buildings. 

Landlords that rent out smaller properties, such as multi-unit homes, are only required to have $300,000 in liability coverage. If you regularly rent out a property for at least three months, you'll be required to get landlord insurance in New Jersey.

What Landlord Insurance in New Jersey Can Cover

You can customize your landlord insurance policy to meet your needs. But in New Jersey, the following coverages are typically available to choose from:

• Liability insurance: This coverage can reimburse you for lawsuit expenses after a tenant sues you over a claim of bodily injury or personal property damage caused by you or your rental property. In New Jersey, this coverage is mandatory for landlords.
• Loss of income coverage: This coverage can reimburse you for lost income if your rental property becomes uninhabitable due to a covered loss, such as a storm or apartment fire. This coverage is designed to help you avoid losing income that you'd normally generate during such periods.
• Dwelling coverage: This coverage can reimburse you for repairs to your rental property's dwelling if it gets damaged by fire, smoke, windstorms, hail, falling objects, or your tenants. Attached structures, such as garages, decks, and porches, are often also covered.
• Premises medical protection coverage: This coverage can reimburse you for medical treatment costs if one of your guests gets injured in a covered event while staying at your rental property. Accidents and other incidents are covered.
• Other structures coverage: This covers damage or destruction to detached structures against the same perils as dwelling coverage. Coverage applies to sheds, fences, and other structures that aren't attached to the main rental property building.
• Optional coverage: Several types of additional coverage are available for landlords as well, such as rent guarantee insurance, natural disaster insurance, vandalism coverage, burglary coverage, rental property under construction coverage, building code coverage, employer liability insurance, and landlord contents insurance, which covers your personal property like furnishings or carpet in the rental property against tenant damage, theft, and more.

Your New Jersey independent insurance agent can help you build your landlord insurance policy in a way that works best for you.

What Landlord Insurance in New Jersey Will Not Cover

Landlord insurance in New Jersey comes with its own set of exclusions like any other kind of coverage does. In New Jersey landlord insurance won't usually cover any of the following:

• Flood damage
• Your personal property stored at the premises
• Rental property wear and tear
• Routine maintenance costs
• Earthquake damage
• Water or sewer backups

You might be able to purchase coverage endorsements for your landlord insurance policy to cover some of these hazards. Just keep in mind that coverage for these specific perils is often excluded otherwise.

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Average Cost of Landlord Insurance in New Jersey

The average cost of landlord insurance in New Jersey is $1,511 per year. That said, the cost of landlord insurance can vary widely, depending on the following factors and more:

• The age and condition of the property: Older buildings with outdated electrical systems often experience higher coverage rates than new units with up-to-code heating and energy systems.
• Your location: Rental properties in high-crime areas often experience higher coverage rates than neighborhoods that experience few property crimes.
• How many rental units you own: The more rental properties you own, the more expensive you can typically expect your rates to be. 
• Risk factors on the property: If you allow smoking in your units or your complex has a fitness center or swimming pool, you might experience higher landlord insurance rates.
• Security measures on the property: If your rental property has a gated entry, antiburglary systems, and smoke alarms, you'll often experience lower coverage rates than landlords without these protective features on their property.
• The size and value of the structure: Larger, more expensive buildings often experience higher coverage rates than smaller, less valuable homes or complexes.

A New Jersey independent insurance agent can help you find affordable landlord insurance near you.

Popular Questions about New Jersey Landlord Insurance