Short answer: New Jersey homeowners should plan for flood and wind, especially near the Shore, and check for old heating oil tanks, which the Department of Banking and Insurance (DOBI) treats as a distinct homeowners issue. If standard companies turn you down, the New Jersey Insurance Underwriting Association, known as the FAIR Plan, sells basic property coverage, but not personal liability, and theft only as an option. Insurers generally must accept or deny a claim and pay within 30 calendar days after proof of loss.
This guide is general information for New Jersey homeowners. It isn't legal advice. Your policy wording controls.
Step 1: Know the gaps that matter in New Jersey
- Flood. Homeowners policies don't cover flood. Get a separate quote through the National Flood Insurance Program or a private insurer, including if you're inland.
- Wind at the Shore. Coastal policies may carry a separate windstorm or hurricane deductible. See hurricane deductibles explained.
- Oil tanks. DOBI's Office of Property and Casualty lists oil tanks as their own homeowners topic, and DOBI's consumer guide Insuring Your Home notes that an oil tank can affect your insurance. If you're buying an older home, ask about any current or former tank before closing, and ask your agent how leaks are covered.
- Household employees. New Jersey law requires certain coverage for domestic servants or household employees on comprehensive personal liability and homeowners policies (N.J.S.A. 17:36-5.29, listed by DOBI).
Step 2: Shop admitted, then surplus lines
DOBI's guide explains that if licensed (admitted) insurers can't write a risk, such as a vacant home, a very high-value home or one on the beach, a surplus lines insurer may. Surplus lines policies can have different coverage and usually higher rates, and they aren't regulated to the same degree.
Step 3: The New Jersey FAIR Plan
Consumers who can't get coverage from a standard company may apply to the New Jersey Insurance Underwriting Association, directly or through any licensed agent (DOBI: FAIR Plan). It was organized in 1968 under N.J.S.A. 17:37A, insures homes, mobile homes, rental units and most commercial buildings, and provides basic property coverage such as fire, lightning, wind and smoke. It does not provide personal liability, and theft is available only as an optional endorsement. DOBI says to consider it only if you can't get insurance from any other source.
Step 4: Non-renewal notices
N.J.A.C. 11:1-20.2 sets non-renewal notice periods from 30 to 120 days, depending on the reason, and the notice must state in bold your right to complain to DOBI. Details: New Jersey homeowners non-renewal rules.
Step 5: Claim deadlines
Under N.J.A.C. 11:2-17.6, insurers must acknowledge a claim within 10 working days and accept or deny within 30 calendar days after proof of loss, or explain in writing why they need more time. First-party property claims are generally paid within 30 calendar days after a properly executed proof of loss. More: New Jersey insurance claim deadlines.
See our tables: non-renewal notice rules by state, insurance claim deadlines by state and home insurance claim and lawsuit deadlines by state.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See New Jersey insurance claim deadlines.
Frequently asked questions
What does the New Jersey FAIR Plan cover?
Basic property coverage such as fire, lightning, wind and smoke. It doesn't provide personal liability coverage, and theft is available only as an optional endorsement, according to DOBI.
Who can apply to the New Jersey FAIR Plan?
Property owners who can't get coverage through a standard company. You can apply directly or through any licensed agent.
Does an oil tank affect New Jersey home insurance?
It can. DOBI treats oil tanks as a separate homeowners topic. Ask about any current or former tank and how your policy handles leaks.
How fast must a New Jersey insurer decide a claim?
Within 30 calendar days after proof of loss, or it must explain in writing why it needs more time, under N.J.A.C. 11:2-17.6.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.