Best cheap homeowners insurance in Jersey City
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On average, homeowners in Jersey City, New Jersey pay $847 per year for a home insurance policy with $250K in dwelling coverage. For comparison, the statewide average rate in New Jersey is $775 per year, which is well below the national average rate of $1,383. That means Jersey City homeowners pay more affordable average rates than many homeowners in other parts of the country.
However, Jersey City homeowners may still be looking for the cheapest provider for their insurance needs. To help you find the best cheap homeowners insurance in Jersey City, we identified the largest providers in the area and compared their average rates using data from Quadrant Information Services. Based on rate data and our individual provider reviews, we found that the best cheap home insurance companies in Jersey City include Selective, NJM and Chubb.
Best cheap home insurance companies in Jersey City
There are lots of New Jersey home insurance companies, but some are cheaper than others. According to rate data from Quadrant Information Services, the cheapest companies in Jersey City include Selective, NJM and Chubb. As part of our review, we gave each insurer a Bankrate Score out of 5 points, which reflects criteria like coverage options, affordability, financial strength and J.D. Power customer satisfaction scores.
Here is the full list of 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|
*USAA does not officially qualify for J.D. Power ranking due to eligibility restrictions
Selective is one of the cheapest home insurance companies on our list, with an average premium of just $364 per year. Selective also stands out for its customizable endorsements like scheduled wine and spirits coverage, service line protection, home systems coverage and cyber protection. Jersey City homeowners may also be able to save money with discounts for bundling a home and auto policy, installing smoke alarms and protective devices, and getting a quote 15 days before the policy’s start date. To get home insurance from Selective, you must work with an agent, as online quotes are not available.
NJM Insurance may be a good option for homeowners looking for low rates and lots of potential discounts. 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 potential discount for homeowners over 65 years old and 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, as it doesn’t offer many digital tools or a mobile app.
Learn more: NJM Insurance review
Chubb specializes in insuring high value homes. Standard home insurance policies from Chubb include robust coverages, like 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 way to save is to bundle a home and auto, or home and valuable articles insurance policy.
Learn more: Chubb Insurance review
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 offer as many as other providers on this list.
Learn more: USAA Insurance review
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
Home insurance coverage options in New Jersey
Jersey City 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 are not 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 may 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 policy. Most insurance carriers let you combine discounts for additional savings. Here are some common home insurance discounts you can may find:
- Bundle 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 no insurance claims on your record 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 stackable discounts. It may be worthwhile to check with your insurance provider when your policy renews to ensure you are taking advantage of all the discounts you may be eligible for.
Frequently asked questions
The best home insurance company for you may vary depending 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.
The average home insurance policy in Jersey City costs $847 per year for $250K dwelling coverage. Home insurance premiums may depend on several factors such as where you live, the kind of home you have, your claims history and your credit-based insurance score.
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.
Earthquakes in Jersey City are quite rare, so may not need earthquake insurance in New Jersey. However, it depends how much protection you want. Standard home insurance policies do not provide coverage in the event of an earthquake. If you want to fill all the gaps in your coverage, purchasing earthquake insurance could be a good investment. You might consider speaking with a licensed insurance agent to explore whether earthquake insurance may make sense for you.
Bankrate utilizes Quadrant Information Services to analyze 2022 current rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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.
Bankrate Scores are calculated on a five-point scale and primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.