Best home insurance companies in New Jersey
Bankrate’s team analyzed the largest home insurance companies by market share across multiple categories, including: customer satisfaction rankings from J.D. Power, financial strength rating from AM Best, the most recent premium data from Quadrant Information Services, policy offerings and discount options. Based on these criteria, Bankrate found the best home insurance carriers in New Jersey to be Allstate, New Jersey Manufacturers, State Farm, Travelers and USAA.
Through our extensive analysis, Allstate, New Jersey Manufacturers, State Farm, Travelers and USAA came out on top.
|Home insurance company||Bankrate Score||Average annual premium for $250K in dwelling coverage||J.D. Power score|
|New Jersey Manufacturers||4.6||$355||Not rated|
*Not officially ranked with J.D. Power due to eligibility restrictions
While some other insurance companies take a low-touch approach to customers, Allstate operates local agencies throughout New Jersey. Allstate also makes the claims process easy, giving you the option to call their nationwide claims center, contact your local agent or file from your smartphone using the Allstate mobile app. Allstate offers a wide range of discounts, which could dramatically decrease your premiums. You could earn discounts by setting up an automatic payment system, going claims-free, installing smoke or theft alarms in your home and even up to a 10% welcome discount just for switching to the homeowners insurance company from another insurer. However, Allstate’s premiums are the highest on our list, so it may not be the best choice for budget-conscious shoppers.
Learn more: Allstate Insurance review
New Jersey Manufacturers
New Jersey Manufacturers (NJM) is a regional insurer that offers several discount options, including one for seniors and others for installing storm shutters and hurricane-resistant glass. These discounts may be attractive to New Jersey residents who experience storms and hurricanes sweeping in from the Atlantic Ocean. You can personalize your homeowners insurance policy by adding endorsements, or riders, for identity fraud, mold and rot and increased personal property coverage for expensive items such as furs and jewelry. However, NJM is not rated by J.D. Power.
Learn more: NJM Insurance review
State Farm has an A++ (Superior) rating from AM Best, which means State Farm is one of the most historically financially stable homeowners insurance carriers in New Jersey. State Farm is also known for offering a wide range of home insurance coverage types and helpful online resources where you can learn more about what your homeowners insurance policy covers. However, the homeowners insurance company has the second-highest premiums on our list.
Learn more: State Farm insurance review
Travelers offers the second-lowest premium on our list. In addition to low average premiums, the company offers a wide range of discounts such as deals for green homes and being loss-free. Travelers offers additional coverage options such as coverage for jewelry and valuable items, identity fraud and a personal articles floater. However, before buying, you may want to consider that Travelers received the lowest J.D. Power customer satisfaction rating on our list.
Learn more: Travelers Insurance review
USAA provides comprehensive homeowners coverage. The company usually ranks among the best New Jersey home insurers, but is only available to active military members, veterans and their eligible family members.
Learn more: USAA Insurance review
How much is homeowners insurance in New Jersey?
The average premium cost for a homeowners insurance policy in New Jersey is $793 for $250,000 in dwelling coverage per year. This is significantly less than the national average of $1,393, making New Jersey one of the most affordable states for homeowners insurance. It is especially affordable when compared to neighboring state New York’s average rate of $969 per year, and while it is more expensive than Delaware, it is about on par with the average Pennsylvania rates at $730 annually.
Home insurance in New Jersey
New Jersey is prone to severe weather impacts year-round. In the summer, the potential of strong hurricanes can negatively impact insurance premiums, particularly in Jersey Shore communities. In the winter, nor’easters and other severe storms due to catastrophic winds and the heavy weight of snow and ice buildup can cause property damage to the roofs of homes. Tornadoes are also prevalent in New Jersey in the spring, summer and fall.
Common causes of loss in New Jersey
Common property losses that are typically seen with home insurance claims in New Jersey include:
- Storms and hurricanes: As a coastal state that is in the direct line of impact of any hurricane moving up the east coast, home insurance losses due to wind and water damage are common. New Jersey residents can use FEMA’s Flood Map Service Center to find out if they live on a flood plain and if they might either need or want flood insurance. If you need assistance preparing for a hurricane, you may want to consult a disaster preparedness guide to make sure you’re stocking up on necessary goods or evacuating in time.
- Wildfires: Wildfires can impact those who live in more rural or heavily wooded areas of the Garden State. An average of 1,500 wildfires a year damage forests and the homes that are near them. This is especially true for those in the northern part of the state or the region of the Pine Barrens, where fires can spread quickly because of dry underbrush.
- Snow: New Jersey is snowier than 26 other states in the country, according to the World Population Review. Snow can cause water damage, flooded basements and more.
- High winds: New Jersey sometimes experiences high-wind events, which can cause power outages and other issues. Protecting yourself financially against potential windstorms may be smart.
Fortunately, New Jersey is not a high-risk state for earthquakes, although small tremblers occur occasionally. The most severe earthquake ever recorded in the state was a 4.8 quake in 1938. New Jersey is also far from “Tornado Alley” in the Midwest, but occasionally experiences tornado outbreaks, including in July 2021 in areas near the Delaware River.
Home insurance coverage options in New Jersey
As a coastal state, New Jersey sits perched on the Atlantic Ocean, leaving it vulnerable to specific risks.
- Flooding: New Jersey has nearly 500,000 properties that have a 26% chance of experiencing extreme flooding within the next 30 years, according to non-profit foundation Flood Factor. If you’re a homeowner in New Jersey, you may want to check if flood insurance is required in your home’s area. Flooding is not standard on a homeowner’s policy, so it may be worth considering whether or not it’s required.
- Sewage backup: According to New Jersey’s Department of Environmental Protection, excessive rain or snowmelt can overwhelm the capacity of sewer pipes and result in an overflow of untreated sewage and stormwater. You may want to consider sewage backup coverage to ensure you’re financially prepared in the event of standing water or sewage backup in your home.
- Identity theft: The highest portion of reports filed to the Federal Trade Commission in 2020 were for identity theft. With financial crime through identity theft on the rise, some homeowners may want to add on identity theft coverage to their homeowners insurance policy.
Frequently asked questions
What is the cheapest homeowners insurance in New Jersey?
Home insurance rates are subjective because factors such as location and construction can greatly affect premiums. To find the cheapest homeowners insurance in New Jersey, determine the amount of coverage you need and then shop around for the best combination of value and protection.
Is home insurance in New Jersey expensive?
New Jersey’s average homeowners insurance rates are cheaper than the national average. For $250,000 in dwelling coverage, homeowners pay $1,393 per year nationwide, but New Jersey homeowners pay about $561 less. However, that likely won’t be the exact rate you pay to insure your home in New Jersey. Your home’s location, size, condition and a myriad of other factors will also play a role in determining your annual premium. Additional coverage options that you add to your policy may also help to determine the annual premium for your home insurance.
How much personal liability coverage should I purchase?
With most insurance companies, standard personal liability coverage is typically offered in a range of $100,000 to $500,000. The amount you should purchase, however, is unique to your needs and will typically be dependent on a few factors. For example, you may have a swimming pool in your backyard or enjoy hosting guests. In these cases, higher liability coverage may be useful to cover injuries that occur to guests in your home. An insurance agent may be a useful resource to help you understand the amount of personal liability coverage you need.
What natural disasters are addressed by my homeowners insurance policy?
You may be wondering what disasters your home insurance covers. Homeowners insurance policies differ on the type of damages they cover. Most homeowners insurance policies will cover damages caused by fire, rain and wind, while flood and earthquake coverage will typically have to be purchased as separate policies or endorsements. However, your individual homeowners insurance company may work differently. As such, you may want to review your homeowners insurance policy with an insurance agent to make sure you know which damages are covered.
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate windstorm and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
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