Home Insurance Difficulty Levels in NJ, from 1 to 10

The scale

Here is how we think about it, using a home in New Jersey:

1. Level 1: an owner-occupied New Jersey home. Easy.
2. Level 2: tenant occupied.
3. Level 3: tenant occupied, with a trampoline.
4. Level 4: all that, and built before 1960.
5. Level 5: all that, plus asbestos siding.
6. Level 6: all of the above, plus a pool with a diving board.
7. Level 7: all of the above, and it’s a duplex.
8. Level 8: all of the above, and it’s coastal.
9. Level 9: all of the above, plus a business with foot traffic.
10. Level 10: all of the above, plus knob and tube wiring. Impossible.

Why each one matters

Tenant occupancy. Owners tend to notice and fix problems sooner. Rentals usually move to a landlord or dwelling policy with fewer carrier options. See landlord insurance.

Trampolines. In New Jersey, many carriers won’t raise your price for a trampoline. They simply decline the home. See our post on trampolines.

Older homes. Homes built before 1960 often have original plumbing, wiring or heating that carriers want updated or documented.

Asbestos siding. It adds cost and complexity to repairs, and some carriers avoid it.

Pools with diving boards. Diving boards bring serious injury risk. Some carriers exclude them or won’t write the home at all.

Duplexes. Two units mean more people, more exposure and, often, a different policy form.

Coastal location. Wind and hurricane exposure limit carriers and bring wind deductibles. See is Lakewood a CAT zone?

A business with foot traffic. Customers coming to the home create liability exposure a homeowners policy isn’t built for.

Knob and tube wiring. This early electrical system is a dealbreaker for most carriers until it is replaced.

What this means for you

None of these features automatically makes a home uninsurable. But each one removes some carriers from the table, and when only a few carriers will write a home, prices go up and choices go down.

That is where an independent agency helps. We know which carriers accept which features, and we can often find a home for a risk that a single-company agent would turn away. If a feature can be fixed, like updating wiring or adding a fence and gate, we will tell you which changes open the most doors.