Monday, June 9 2014
Finding coverage in the NJ Home Insurance Marketplace
for Affluent and Waterfront Properties faces New challenges.
Recent changes in the NJ Insurance Market has created difficulties for all homeowners, from the average ranch homes of Bergen County to
High-End Affluent multi-million dollar homes of Morris County and the Jersey Shore. All over NJ, we’re seeing costs rise
as well as increasing deductibles. But the problems are no where as acute as they are on the Jersey Shore and in the High Value, Affluent Homeowner’s Insurance markets. Even before Hurricane Sandy, Insurance companies were getting selective about the distance from water that they would insure.
Home insurance does not cover losses from Flood, but Insurance companies are focused on potential Wind damage.
And the hits to polices on higher priced homes can be substantial and are often overlooked by property owners until it's too late.
After a loss occurs, a claim is filed and the details on their restrictive policies are learned. Homeowners failed to read the fine print.
That's where an Trusted Choice® Independent Agent can make a world of difference.
High Value Affluent Home Insurance is specifically tailored to the unique needs of homes valued in most cases above $1 million depending on the company selected. Again this isn't the MARKET Value or appraised tax value. It’s strictly an insurance replacement cost valuation. To illustrate, the replacement cost of any home is calculated by the total square footage multiplied by a per square foot dollar cost. In today's market the cost per square foot to rebuild can be anywhere from $150 to as much as $300 per square feet or more, depending on materials, style, etc. For example: A new custom built home with high end materials say 5000 square feet with a pool, patio, 3 car garage etc. should be insured for replacement values in a range from 1.1 Million to as much as $2 Million or more for insurance purposes, or roughly $200 to $300 per square foot.
Some of these affluent homes are also located on or near the waterfront, Coast, Rivers, Lakes on or near the beach. And that makes those homes prone to underwriting issues that prevent the most common Insurance companies from offering coverage. The majority of NJ appointed Insurance companies set 3-5 Mile exclusions to water -meaning they will not insure homes anywhere in that 3-5 mile range! And if you find insurance the Wind and Hurricane deductibles could be 1% to 5% or higher! Again an example, a Wind loss occurs, $100,000 in damages on your home,your $1 million dollar home has a 5% wind deductible, you could end up shelling out $50,000 for wind and or hurricane damages before the insurance company pays you the first dollar of a claim.
And even if your home is not directly on the water but is in that 3-5 mile range from a river, lake or bay it can still be classified as waterfront and thus uninsurable with those Voluntary companies you may know from TV or print media.--- Yes it is confusing----but that's the insurance market right now. That’s why contacting the professionals at I & E Insurance Agency makes sense, we specialize in High End Affluent and Waterfront property Insurance.
We have Insurance Carriers that are insuring High-End Afflulent Homes and costal and waterfront properties on the Barrier Islands and in that
3-5 mile range from the coast that most companies are excluding. New additions to our agency over the last 6 months are helping homeowners get better coverage
with lower deductibles. Contact I & E Insurance Agency for more details.
About I & E Insurance Agency-
I & E Insurance Agency is your one stop solution for all your Affluent and coastal insurance needs.
It doesn't matter whether your Dream Home is in Warren or Morristown , a small cottage in Belmar , a 10,000 square foot mcmansion in RUMSON , a rental home in Lavallette , a 110 year Old Victorian in Ocean Grove, and Cape May a colonial in Paramus or even a ocean view condo in Atlantic City --
we can get you the proper coverage for your property.
And in some cases, we can package insurance needs such as home, boat, flood, primary and vacation coverage all together saving you time and money.
I & E Insurance Agency is an independent family owned and operated Agency serving all of NJ. We have clients from Alpine to Cape May from Vernon Valley and High Point to Princeton. Many of Our customers have multiple homes, Autos, Boats and Business polices with us and find that a one call service and solution can save them time and money.
Our Principals (2) have over 65 + years experience. As a Trusted Choice® Agency we provide a full range of Insurance for Business, Personal and Commercial clients.
Just Click Here and we'll get you a quote immediately.