Opening a B&B is an exciting time for anyone, but there’s still a lot to consider and it can be very easy to just assume that your regular NJ homeowners insurance will cover you for everything.
B&B NJ home insurance
The average rate for general home insurance in New Jersey is approximately $662 per year.
But nj homeowners insurance will not cover you against one of your guests falling and injuring themselves on your property and then suing you for negligence.
You are also not covered for needing to close your business for a few weeks for maintenance. Also due to ill health and making a loss that month. Nor if a guest should fall ill after eating food prepared on your premises. All of these eventualities are not covered by general homeowners insurance.
Is there a standard B&B homeowners insurance policy?
Many insurance companies at this site will offer a special package for B&B homeowners insurance which will include elements of other products. Commercial Insurance, for example, offers you far more comprehensive cover than that of a typical homeowners insurance policy.
The Commercial policy comes in two halves; Liability and Property.
Liability coverage will protect you should you be sued. It also provides you with defense lawyers to argue your case in court. It will pay fees and any settlements awarded by the jury to the plaintiff. And the property cover protects your buildings, contents and computer and telephone systems against damage and repair or replacement costs.
There are other types of coverage available. It would be well worth considering but it all depends on the needs of your individual business.
Special events insurance cover you for any weddings, private parties or other gatherings of people at your venue.
Umbrella liability insurance offers protection against large-scale disasters and would be used once you all other coverage has been exhausted.
Business income insurance protects against loss of earnings if your business is closed for repair following an unforeseen event such as a fire. Check with the policy provider though before purchasing this product to see exactly what events are covered as many policies, including regular homeowners insurance are not covered against flood damage.
Is insuring my B&B more expensive within New Jersey?
With the average costs of a B&B NJ homeowners insurance coming in about anywhere between $500 and $600 per year, this seems in keeping with most other insurance companies within the US and actually seems about the median, with the exceptions being tourist traps boasting large attractions such as Florida and California where Disney have based two of their major theme parks. Within these places expect the costs to be far higher in general.
So, in conclusion, I should say no, it isn’t more expensive for a B&B NJ home insurance policy, but it would probably be a little more costly the closer you are to any highly popular tourist attractions.