The average cost of home insurance in the U.S. is $1,312 per year, but in Newark, homeowners insurance is $868 per year for $250K dwelling coverage. It is more expensive here than the average cost of insurance in New Jersey, which runs $751 per year. It makes it all the more important that Newark homeowners find the best cheap home insurance companies to protect their investment.
According to the U.S. Census, there are 282,011 residents in Newark. There are more than 100,200 households in the city, with approximately 22.3% of properties owner-occupied. Many home insurance companies service Newark, but not all of them may provide the right coverage that a Newark homeowner needs. Based on the latest data, figures, and rankings, these are the best cheap homeowners insurance companies in Newark.
Best cheap home insurance companies Newark
We used 2021 rates from Quadrant Information Services and the latest customer satisfaction rankings from J.D. Power to help up narrow down the top providers. We also considered coverage options, discounts and accessibility.
|Home insurance company||Average annual premium for $250K liability||J.D. Power customer satisfaction score|
|The Hanover||$1,094||Not rated|
Travelers offers several additional protections for your Newark home insurance. Available options include loss of use coverage, flood insurance and water backup and sump pump discharge or overflow. For your belongings, you can choose from special personal property coverage, contents replacement cost and additional replacement cost protection coverage, plus protection for your jewelry and valuables. To help you save, ask about discounts like the homebuyer, loss-free and green home discounts. You can also save up to 15% up when you bundle your home insurance with another Travelers policy for car insurance, boat insurance, pet insurance and even wedding and event insurance.
Learn more: Travelers Insurance review
USAA is one of the largest companies for car insurance, but it specializes in home insurance, too. You must be an active member of the military, veteran or eligible family member of a military member of veteran to benefit from coverage, but USAA has some of the cheapest home insurance rates in Newark. Identity theft insurance comes standard with up to $5,000 of coverage, plus there are potential options for loss of use, home-sharing coverage and earthquake coverage. You may also receive 10% by either bundling policies or being claims-free for five or more years.
Learn more: USAA Insurance review
State Farm has insurance for all property types, including manufactured, condo and rental property insurance. It is also easy to bundle with available auto, motorcycle and RV insurance, plus life, health, pet and disability insurance for a well-rounded suite of full protections. Check out its signature Drive Safe & SaveTM and Steer Clear® discounts. There are also extra potential ways to save with home alert protection, roofing discounts and the option for higher deductibles. State Farm also offers some of the best mobile tools in the industry, plus online resources to help you manage your policy.
Learn more: State Farm Insurance review
The Hanover offers two home insurance packages that you can buy: the Prestige and the Platinum. The Platinum bundles home and auto for one single account and low pricing. You can also purchase the Prestige policy, which is designed to cover high-value properties. For even greater protection, you have the option to add ordinance or law coverage, service line coverage, water backup coverage and guaranteed replacement cost to help if the worst happens. Loss mitigation expense coverage can help with up to $2,500 towards claims of $10,000 or more, or you can opt for the deductible waiver for large losses, so you pay no deductible when you experience a loss that totals more than $50,000.
Learn more: The Hanover Insurance review
Allstate offers several add-on protections for a truly customized home insurance policy. Available is the HostAdvantage® program for home-sharing with available identity theft restoration services. Allstate also offers some rarely-seen types of coverage, including insurance protection for your sports equipment, business property, yard and garden, and even musical instruments. If you update your home with certain home renovations, you could be eligible for the green improvement reimbursement.
Newark home insurance recommendations
Given its home on the Eastern seaboard, New Jersey is a state that is subject to several natural risks. The standard home insurance policy is a good start, but sometimes, additional protections such as these may help bring peace of mind:
- Flood insurance: New Jersey’s placement along the Atlantic Ocean can leave it vulnerable to fierce storms and flooding. Flood insurance can help protect your home if your area is subject to flooding.
- Water damage: Sometimes, water comes not from a storm but from a malfunctioning sump pump or clogged sewer. Sump pump and water backup coverage is available from most providers.
- Windstorm: Windstorm coverage is included with some policies but must be purchased as additional coverage with other providers. It is highly recommended for most New Jersey homeowners who can be subject to punishing winds and hurricanes.
Home insurance discounts in Newark
There are several ways to save on your home insurance each month. Many homeowners insurance companies offer discounts to help lower the cost of your premium each month.
- Home: You can earn extra discounts when you have safety features in your home, such as a home security system, smoke detectors or a new roof.
- Payment: Many companies will offer discounts when you sign up for online payments, pay in full or renew your policy early.
- Customer: You can also earn other discounts such as military, seniors, new homebuyer and loyalty discounts.
Bundling policies can also be a great way to save money. When you have multiple policies from the same company, you could earn discounts on each. When you buy a new home insurance policy, consider also purchasing an auto, life, or another type of insurance policy from that same provider.
Frequently asked questions
What is the best home insurance company?
Based on our latest research, the best home insurance companies include several of the best companies in Newark, but which one is the best will depend on what you need most from an insurance provider and the rates you are quoted.
How much does home insurance in Newark cost?
The average cost of home insurance in Newark is $868 each year for $250K dwelling coverage. It is more expensive than the average cost of New Jersey home insurance, which is $751 per year, but it is much cheaper than the national average of $1,312 per year.
How much home insurance do I need in Newark?
No home insurance is required in Newark, although if you have a mortgage, your lender will likely require you to maintain a minimum amount of coverage. Regardless, home insurance is always highly recommended in order to protect your home and belongings.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and homes 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.
Rates are determined based on 2021 Quadrant Information Services data.