Short answer: In New Jersey, your landlord's policy doesn't cover your belongings or your liability. Under the Security Deposit Act, a landlord can't require more than one and one-half months' rent as security, and increases are limited to 10% of the current deposit per year. Within 30 days after the lease ends, the landlord must return the deposit plus your share of interest, minus lawful deductions, itemized and sent by personal delivery, registered or certified mail. If you're displaced by fire, flood, condemnation or evacuation, a five-business-day return rule can apply.
This guide is general information for New Jersey renters. It isn't legal advice, and local ordinances can add rules. Your lease and policy wording control.
Your landlord's policy covers the building, not your belongings or liability. A renters policy (HO-4) covers personal property, personal liability and loss of use; flood is generally excluded (see FloodSmart). Coverage basics: renters insurance. Roommates: whether renters insurance covers roommates. Liability: how much renters liability coverage you need.
Step 1: Deposit cap
Under N.J.S.A. 46:8-21.2, as published by the Department of Community Affairs in the Security Deposit Law, a landlord can't require more than 1½ times one month's rent as security. Additional security collected annually can't exceed 10% of the current deposit. The law also requires deposits to be held in a way that earns interest or earnings for the tenant.
Step 2: The 30-day return
Under N.J.S.A. 46:8-21.1:
- Within 30 days after the lease ends, the landlord must return the deposit plus your portion of interest or earnings, minus charges permitted by the lease.
- The interest and deductions must be itemized, and both the money and the notice go by personal delivery, registered or certified mail.
- No deductions can be made from the deposit of a tenant who remains in possession.
Step 3: Displacement by fire or flood
The same section sets a five-business-day return requirement when a tenant is displaced by fire, flood, condemnation or evacuation and the conditions in the statute are met, such as an official posting that prohibits occupancy. Renters insurance loss of use coverage can help with hotel costs while you're displaced, but flood damage to your belongings generally needs separate flood coverage; see FloodSmart.
Questions? Contact Alishahi Insurance or call (877) 711-4545. See insurance in New Jersey.
Frequently asked questions
What's the maximum security deposit in New Jersey?
One and one-half times one month's rent, under N.J.S.A. 46:8-21.2.
How long does a New Jersey landlord have to return my deposit?
Within 30 days after the lease ends, with interest and itemized deductions, by personal delivery, registered or certified mail.
Do New Jersey tenants earn interest on security deposits?
Yes. The return must include the tenant's portion of interest or earnings.
What if I'm displaced by a fire or flood in New Jersey?
A five-business-day return rule can apply when the statute's conditions are met.
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.