Best cheap homeowners insurance in Jersey City
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Homeowners in Jersey City, New Jersey pay an average of $865 per year for a home insurance policy with $250K in dwelling coverage. Although it’s well below the national average of $1,428 per year, Jersey City home insurance costs about 12 percent more than the statewide average of $775. If you’re a Jersey City homeowner on the hunt for the best home insurance company, Bankrate has done the heavy lifting for you. Our extensive research identified NJM, USAA, Chubb, Travelers and Preferred Mutual as the best cheap home insurance providers in Jersey City.
Best cheap home insurance companies in Jersey City
There are lots of New Jersey home insurance companies, but some are more affordable than others. According to rate data from Quadrant Information Services, the cheapest companies in Jersey City include NJM, USAA and Chubb. As part of Bankrate’s review, our insurance editorial team gave each insurer a Bankrate Score out of five points, which reflects criteria like coverage options, affordability, financial strength and J.D. Power customer satisfaction scores.
Here are the best cheap home insurance companies in Jersey City, based on our research.
| Home insurance company | Bankrate Score | Average annual premium for $250K dwelling coverage | J.D. Power score |
|---|---|---|---|
| NJM | 4.1 | $603 | NA |
| USAA* | 4.6 | $778 | 884/1,000 |
| Chubb | 4.2 | $798 | 809/1,000 |
| Travelers | 4.2 | $845 | 794/1,000 |
| Preferred Mutual | 5.0 | $857 | NA |
*USAA does not officially qualify for J.D. Power ranking due to eligibility restrictions
NJM
NJM may be a good option for homeowners looking for low rates and lots of discount opportunities. The company offers potential savings for bundling home and auto policies, having a backup or portable generator, not smoking and installing storm shutters and hurricane glass. NJM may also be a good option for older homeowners as it offers a discount for those over 65 years old, as well as an endorsement for assisted living care coverage. Other endorsements include fungi coverage, rot and bacteria coverage, supplemental loss assessment and credit card coverage. Homeowners looking for digital policy management may not find what they’re looking for with NJM though, as it doesn’t offer many digital tools or a mobile app.
Learn more: NJM insurance review
USAA
USAA consistently receives high scores for customer satisfaction from J.D. Power. It also has some of the most affordable premiums in Jersey City. However, only active duty military members, veterans and their eligible family members can get coverage from USAA. USAA includes replacement cost coverage in its standard homeowners policy, plus deductible-free uniform coverage for active-duty military members. The carrier also has other types of homeowners insurance protection available, such as home-sharing coverage, earthquake coverage and flood insurance. USAA offers some discounts but may not have as many opportunities as other providers on this list.
Learn more: USAA insurance review
Chubb
Chubb specializes in insuring high-value homes. Standard home insurance policies from Chubb include extended replacement cost coverage, risk consulting and a cash settlement option if you have a claim. Plus, Chubb may help you find temporary housing and pay the difference in expenses if your home is damaged in a covered loss and you have to temporarily relocate. Although Chubb has below-average premiums in Jersey City, it does not offer as many discounts as other providers we reviewed. The only advertised ways to save are to bundle home and auto or home and valuable articles insurance policies.
Learn more: Chubb insurance review
Travelers
Travelers offers a wide selection of coverage options and discounts for Jersey City homeowners. You can customize your policy with endorsements like scheduled personal property coverage, contents replacement cost coverage, water backup coverage, green home coverage and identity fraud protection. Discounts include savings for having a LEED-certified home, being a new home buyer, having no prior insurance losses and more. However, Travelers is rated near the bottom of J.D. Power’s 2022 Home Insurance Study, which may indicate that some policyholders are not satisfied with the company.
Learn more: Travelers insurance review
Preferred Mutual
Although Preferred Mutual is the priciest on our list of the best cheap home insurance companies in Jersey City, its average annual premium is still below the citywide average rate. Preferred Mutual might be another good choice for homeowners with high-value homes or those with above-ground swimming pools. Preferred Mutual was not rated by J.D. Power, but it earned an A rating from AM Best for financial strength, which indicates that the company has a strong history of paying out claims. However, if you want to visit an agent in an office, you will have to make the drive up to North Bergen or Secaucus.
Home insurance coverage options in New Jersey
Jersey City typically experiences several weather-related events each year that may impact your home insurance. While standard home insurance policies provide comprehensive coverage, there are some losses that may not be covered. To fill gaps in your coverage, you might consider purchasing endorsements for more protection. Here are some popular add-ons that Jersey City homeowners may benefit from:
- Flood insurance: Flood damage is not covered by standard home insurance policies. Because many New Jersey homes are at risk of flooding due to severe storms and hurricanes, having a separate flood insurance policy may be helpful for additional financial protection in the event of a covered peril.
- Water backup insurance: Water backup insurance, also called sewer backup coverage, is an endorsement that provides coverage if water backs up into your home through sewer pipes or drains. It may also cover certain water damage issues, like mold.
- Identity theft insurance: Identity theft insurance may pay for identity restoration services if your identity is stolen. For example, this policy might cover credit monitoring for a certain period of time or assistance with canceling credit cards and other personal accounts.
Home insurance discounts in Jersey City
Many New Jersey home insurance companies offer discounts to help homeowners save money on their policies. Most insurance carriers let you combine discounts for additional savings. Here are some common home insurance discounts you may find:
- Bundling and multi-policy discounts: When you purchase more than one policy with the same provider, you may earn a multi-policy discount. The most common type of bundle, and the one that typically yields the most savings, is a home and auto bundle.
- Claims-free discounts: If you have not filed a home insurance claim in a given period of time (typically three to five years), your insurance company may give you a discount on your premium.
- Safety discounts: If your home is equipped with safety features, like smoke detectors or a home security system, you could qualify for a discount.
Home insurance discounts may significantly reduce your premium, especially if you qualify for multiple. It may be worthwhile to check with your insurance provider when your policy renews to make sure you are taking advantage of all the discounts you are eligible for.
Frequently asked questions
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The best home insurance company for you will depend on your needs. Most insurance professionals advise comparing quotes from several providers to see which companies may offer the best coverage for the best price. Your home insurance quote will vary based on individual rating factors, like the kind of home you have, where you live, your claims history and your insurance-based credit score. Each provider will calculate your home insurance premium differently, so many experts recommend gathering multiple quotes before deciding on a provider.
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The average home insurance policy in Jersey City costs $865 per year for $250K dwelling coverage. That’s significantly more expensive than neighboring state Delaware’s average of $679 per year, but head and shoulders below New York’s statewide average of $1,506. The average cost of Jersey City home insurance still falls below the nationwide average of $1,428.
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How much home insurance you need in Jersey City depends on your unique situation. Home insurance is not required for homeowners in Jersey City, although if you have a mortgage, your lender will likely require that you carry a minimum amount of coverage. But even if you own your home outright, having homeowners insurance could still be valuable. Many insurance experts recommend purchasing home insurance to protect yourself financially in the event of a loss.
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Homeowners with poor credit histories may want to consider purchasing a policy from NJM, Preferred Mutual or Allstate. NJM’s average rate for homeowners with poor credit is $529 per year while Preferred Mutual’s is higher at $674. Allstate is the most expensive of the three at an average of $977 per year. Statistically speaking, homeowners with poor credit histories are more likely to file claims, which makes them a higher risk to insure.
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Bankrate utilizes Quadrant Information Services to analyze 2023 current rates for 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 will differ.
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Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
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