New Jersey Department of Banking and Insurance

What this document is

New Jersey Department of Banking and Insurance - Insuring Your Home: A consumer guide to Homeowners, Renters and Condominium Insurance (16 pages) is a reference published by New Jersey Department of Banking and Insurance (www.nj.gov/dobi). It is one of the New Jersey documents that insurance license exam questions are written from, including new jersey property & casualty, new jersey personal lines, new jersey claims adjuster practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• New Jersey DOBI, Insuring Your Home, Hurricane Deductibles

  “Many policies also have hurricane loss deductibles that apply only to losses that occur during a hurricane, which is an event that is designated as a hurricane by the National Weather Service, and only if sustained wind speeds of 74 mph have been measured anywhere in New Jersey.”

• New Jersey DOBI, Insuring Your Home, Lender Requirements

  “If you fail to keep your homeowner policy in force, the lender may purchase coverage on your property and you will be responsible for paying the premiums. This is called “lender placed” insurance and it is generally more expensive than a regular homeowner policy and only protects the interest of the lender.”

• New Jersey Department of Banking and Insurance, Insuring Your Home (16-page PDF), Policy Cancellations and Nonrenewals

  “the insurer has a right to cancel coverage any time within the first 60 days for any reason not otherwise prohibited by law.”

• New Jersey Department of Banking and Insurance, Insuring Your Home (16-page PDF), Hurricane Deductibles

  “Many policies also have hurricane loss deductibles that apply only to losses that occur during a hurricane, which is an event that is designated as a hurricane by the National Weather Service, and only if sustained wind speeds of 74 mph have been measured anywhere in New Jersey. There are several...”

• NJDOBI, Insuring Your Home (Coverage C, Personal Property)

  “Generally, Personal Property coverage pays the Actual Cash Value (ACV) of the damaged item unless you have purchased a replacement cost coverage endorsement. Actual Cash Value means the value of the item as it is now, considering its age and condition.”

• NJDOBI, Insuring Your Home (Common Exclusions, home based business)

  “Home based business. Most homeowner policies only provide limited coverage for business related property and do not provide liability coverage for a home based business or business interruption coverage.”

• NJDOBI, Insuring Your Home (Factors that Affect the Cost, cost to rebuild)

  “policies contain a provision if you are underinsured and suffer a loss, where a co-insurance penalty will apply. This means that even for a minor loss, you may incur additional out of pocket expenses.”

• NJDOBI, Insuring Your Home (Common Exclusions, building codes)

  “Additional cost of repairs due to changes in building codes or local laws enacted since the home was built. Some coverage may be available as an added endorsement.”

• NJDOBI, Insuring Your Home (Coverage B, Other Structures)

  “This coverage provides protection for unattached structures like sheds or fences.”

• New Jersey Department of Banking and Insurance, Insuring Your Home (16-page PDF; the guide prints no revision date), FAIR Plan

  “If you have been unsuccessful at obtaining coverage for your property in either the admitted or the surplus lines market, you may be able to obtain coverage through the New Jersey Insurance Underwriting Association, known as the FAIR Plan. A property owner may apply to the FAIR Plan directly or...”

• New Jersey Department of Banking and Insurance, Insuring Your Home (16-page PDF; the guide prints no revision date), Underwriting Guidelines/Rules

  “Insurance companies have underwriting guidelines or rules to determine the types of risks they will accept. Things such as prior claim history, the condition and location of your home and property, whether you own any pets that might cause an increased liability risk, whether you have an in home...”

• NJDOBI, Insuring Your Home: A Guide to Homeowners, Renters and Condominium Insurance, Homeowner Insurance Basic Coverages

  “For example, a renter’s policy will not provide Coverage A – Dwelling, since you do not own the property where you live.”

Practice this material

Questions about this source

More New Jersey sources

• N.J.S.A. 17:29B-4: Unfair methods of competition and deceptive acts definedState statute
• N.J.S.A. Title 17 Chapter 1 - Department of Banking and Insurance; the Commissioner's powers (17:1-1 through 17:1-28, 23 sections)State statute
• N.J.S.A. Title 17 Chapter 16C - Retail Installment Sales Act (17:16C-1 through 17:16C-103, 125 sections)State statute
• N.J.S.A. Title 17 Chapter 1C - Department expenses, apportionment and assessment (17:1C-6.1 through 17:1C-48, 32 sections)State statute
• N.J.S.A. Title 17 Chapter 28 - Insurance policy provisions, including compulsory uninsured and underinsured motorist coverage (17:28-1 through 17:28-8, 16 sections)State statute
• N.J.S.A. Title 17 Chapter 29A - Rates and rating organizations (17:29A-1 through 17:29A-62, 73 sections)State statute
• N.J.S.A. Title 17 Chapter 29AA - Commercial insurance deregulation (17:29AA-1 through 17:29AA-34, 35 sections)State statute
• N.J.S.A. Title 17 Chapter 29B - Unfair trade practices in the business of insurance, complete chapter (17:29B-1 through 17:29B-19, 20 sections)State statute