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NJM Insurance Homeowners Review

NJM Insurance Homeowners Review

NJM Insurance Homeowners Review

New Jersey Manufacturers home insurance has been in business for well over 100 years, since 1913, when they began as a workers comp carrier for employees in the surrounding area. They steadily increased their insurance coverage offerings over the years for their policyholders to include homeowners, auto, and personal insurance. Today, they cover folks in both New Jersey and Pennsylvania adding renters, condo, recreational auto, and umbrella insurance to the mix.

This nonprofit also makes it a practice to provide their policyholders with dividends at the end of each year at approximately 5%. We’re going to focus on the homeowners aspect of their coverage. Let’s check it out.


When you take out a policy with NJM, you’re given several opportunities for discounts.

  • Age 65 and over
  • All members of the household are nonsmokers
  • Automatic backup/portable generator present
  • Safe home discount
  • Multipolicy discount

Covered Perils

As with most homeowners policies, NJM covers a majority of the perils that you may find yourself faced with. These include:

  • Occurrence of lightning or fires
  • Hailstorm or strong windstorm
  • Explosive episode
  • A riot or a civil disturbance
  • Aircraft damage
  • Damage done by smoke unless it has been caused by smudging from agriculture or an industrial occurrence
  • Vandal damage unless the home is unoccupied
  • Stolen contents
  • Falling object damage
  • Wet snow, sleet, or ice damage to a structure or property that is inside the structure
  • Plumbing that has an accidental discharge of water or steam that overflows (or heating/air conditioning/sprinklers/hot water heater)
  • Plumbing freezing (or heating/air conditioning/sprinkler/hot water heater)
  • Damage from an artificial general electrical current that is sudden, accidental with the exception of the loss of components such as transistors, tubes, or other similar parts.
  • Loss due to the eruption of a volcano

There are exclusions that apply that are not a covered part of NJM’s policy. A few of the more naturally occurring are listed.  


  • Loss by earthquake
  • Shock waves in the land/tremors
  • Power failure
  • Flood

Home Insurance Coverage Details

NJM provides two different types of homeowners plans for their policyholders – the Special Form (HO-3) and the Comprehensive Form (HO-5).  They also offer a Contents Broad Form policy for renters and a Condominium Unit-Owners Form policy for condo owners. These policies are ‘package’ plans that give the policyholder a variety of coverage types under one contract.

Coverage A – Dwelling

For you to be able to determine the amount of your coverage for your NJM policy, guidelines for HO-3 and HO-5 policies say that in order for your dwelling to be completely protected by your insurance policy, you need to purchase insurance that will be equivalent to the full rebuild cost of your home as opposed to what the selling price would be.

Coverage B – Other structures

  • 10% of Coverage A for a one or two-family residence
  • 5% of Coverage A for a three to four-family residence

If additional coverage is needed the Other Structures Endorsement is available.

Coverage C Personal Property

  • 60% of Coverage A for one and two residences (can increase to higher if necessary or lowered no less than 40% – Coverage A)
  • 40%  of Coverage A for three family residence (can increase to higher if necessary or lowered no less than 20% – Coverage A)
  • 35 % of Coverage A for four family residence (can increase higher if necessary or lowered no less than 15% – Coverage A)

Coverage E for Personal Liability Is automatically given with Policy HO-3 at a limit of $100,00 and a Coverage F for Medical Payments to Others at a Limit of $1,000. You do have the option for other limits available.

Coverage E for Personal liability is automatically given with policy HO-5 policy at a limit of $500,000 and a Coverage F for Medical Payments to Others at a limit of  $5,000.

There are always savings on your premium amount if you decide that you want to opt for a higher deductible. The deductible for the policies as they are include $750 for HO-3 and begins at $1,000 for HO-5. For any homes that are positioned on the New Jersey Coastal region, there is a  $1,500 deductible minimum. There are also special hurricane deductibles that apply for these areas in the event of a hurricane.


Endorsements can be added to your policy in the case that the plan’s coverage is not sufficient for your requirements or doesn’t allow all of the things that you have a need for. The plans list a variety of different endorsements, e.g. earthquakes which are not covered by the standard homeowners policy, but you can also make a request for an endorsement that may not be readily available.


When reviewing their policy, folks were overall positive regarding NJM, with a majority of them praising the customer support team and their services. They found the nonprofit company to be very policyholder-focused with their dividend return at the end of the year and were happy with what they deemed affordable rates. According to the customers, claims are handled in a quick, hassle-free manner. The overall consensus was that they would highly recommend this insurance company.

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