Best homeowners insurance in New Jersey of 2021
Your home is likely the biggest financial investment you’ll ever make, and whether you’re purchasing a starter home in Trenton or a retirement cottage in Long Beach Township, you need to protect your dwelling with the best homeowners insurance in New Jersey. Nearly 64% of New Jersey residents own their homes, and the median cost of a home in the Garden State is $329,000, which is significantly higher than the national median home value of $266,104.
The average premium for New Jersey homeowners insurance is $810, which is well below the national average cost of homeowners insurance, which is $1,477 per year. Your rate will depend on personal factors. If your home is within, or near, locations that commonly experience hurricane damages, make sure to get coverage for storms, hail and wind damage.
The best home insurance companies in New Jersey
Annual premium rates are important, but you need to consider factors such as financial ratings and customer service when considering a homeowners insurance New Jersey company. J.D. Power produces an annual survey of home insurance companies.
We picked the best options for home insurance in New Jersey based on pricing, coverage options, third-party ratings and our experience in the insurance industry.
|Home insurance company||Average annual premium for $250K dwelling||J.D. Power & Associates customer satisfaction score|
|New Jersey Manufacturers||$438||Not rated|
While some other insurance companies take a low-touch approach to customers, Allstate operates agencies throughout New Jersey. Allstate also makes the claims process easy, giving you the option to call the nationwide claims center, contact your local agent or file from your smartphone using the Allstate mobile app. We also like Allstate’s range of discounts, which could dramatically decrease your premium costs. 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 company.
Learn more: Allstate Insurance review
New Jersey Manufacturers
NJM is a regional insurer known for the high quality of its customer service — in fact, J.D. Power puts it in first place for its auto claims process. It has some nice discount options, including one for seniors and one for having storm shutters and hurricane glass. You can customize your policy by adding endorsements, or riders, for identity fraud, mold and rot and increased personal property such as furs and jewelry.
Learn more: NJM Insurance review
Progressive offers solid policy choices to New Jersey homeowners at a competitive price. That price could be lowered through a small selection of discounts, including a bundling discount, quote in advance, safety and alarm systems and new purchase. Progressive has an excellent web presence and good mobile app. You can choose to customize your policy with replacement cost coverage as well as other riders.
Learn more: Progressive Insurance review
State Farm has an A++ rating from AM Best, which means means State Farm is one of the most financially stable homeowners insurance companies in New Jersey. State Farm is known for offering good home insurance coverage, affordable rates and helpful online resources where you can learn more about how insurance works.
Learn more: State Farm Insurance review
USAA provides comprehensive coverage. The company usually ranks at the top of the best homeowners insurance New Jersey companies but is only available to military members, veterans and their eligible family members.
Learn more: USAA Insurance review
Average cost of homeowners insurance in New Jersey
The average premium cost of homeowners insurance in New Jersey is $810 per year. This is 45% less than the national average of $1,477, making New Jersey one of the more affordable states for homeowners insurance. It’s especially affordable considering New York’s average rate of $969 per year, and while it’s more expensive than Delaware, it’s about on par with the average Pennsylvania rates.
Home insurance consideration in New Jersey
Although the prevalence of hurricanes in the summer impacts New Jersey insurance premiums, the lack of severe winter weather, which can cause catastrophic damage through the weight of snow buildup as well as wind damage, keeps costs from being too high. New Jersey also rarely sees tornadoes or earthquakes, two natural phenomena that can hike up rates.
New Jersey common causes of loss
In New Jersey, there are some kinds of common losses that are typically seen with home insurance claims:
- Storms and hurricanes: Storms and hurricanes pose the highest risks to New Jersey homeowners. 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. The torrential rainfall and subsequent flooding that come with summer storms and hurricanes are especially prevalent along the coast, of course, but may also impact residents who live near normally-placid streams or ponds. 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 consider flood insurance.
- Wildfires: Wildfires can also impact those in more rural or heavily wooded areas. 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.
Fortunately, New Jersey is not a high-risk state for earthquakes, although small tremblers occur occasionally. The most severe one ever recorded in the state was a 4.8 quake in 1938. New Jersey is also far from “Tornado Alley” in the Midwest, but does occasionally see smaller twisters touching down, including five in 2019.
Common coverages in New Jersey
New Jersey homeowners are subject to some specific risks. As a coastal state, it sits perched on the Atlantic Ocean, leaving it vulnerable to specific risks. According to the Insurance Information Institute, more than 95,600 single-family homes are at extreme risk of hurricane damage.
As a result, many insurance experts recommend New Jersey homeowners consider flood insurance.
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.
What is the greatest risk to New Jersey homes?
Storms and hurricanes pose the greatest risk to New Jersey properties. It’s important to have adequate coverage for perils such as flooding, hail and wind damage.
How much personal liability coverage should I purchase?
Consider the specific features of your home when determining how much personal liability coverage you need. For example, if you own a swimming pool and like to throw pool parties, you probably need additional liability coverage in case someone sustains an injury on your property. When requesting insurance quotes, pay close attention to standard liability coverage amounts. Typically, standard coverages range from $100,000 to $500,000.
Bankrate utilizes Quadrant Information Services to analyze 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 wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.