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Best homeowners insurance in New Jersey for 2024

USAA, Allstate, Travelers, State Farm and NJM are among the best home insurance carriers in New Jersey

Updated Feb 12, 2024
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Compare the best homeowners insurance companies in New Jersey

The average cost of New Jersey home insurance is $916 annually for $250,000 in dwelling coverage. This works out to roughly $76 per month. Your own rates are likely to differ from this based on factors that are unique to you and your property, such as the age and condition of your home, as well as your ZIP code and credit-based insurance score.

USAA, Allstate and Travelers earned the top Bankrate Scores on our list, which are out of a total of five points and based on our extensive analysis of third-party ratings such as the J.D. Power 2023 Home Insurance Study, premium data obtained from Quadrant Information Services and other factors. State Farm and NJM  were not far behind. State Farm scored well in customer service satisfaction based on J.D. Power rankings and NJM features one of the cheapest average home insurance rates in New Jersey.

Insurance company J.D. Power Average monthly premium Average annual premium
881
/1,000
$68
$814
Get a quote
809
/1,000
$80
$964
Get a quote
790
/1,000
N/A
N/A
Get a quote
829
/1,000
$74
$894
Read review
NJM
Not rated
$49
$588
Read review
*Premiums are for $250K in dwelling coverage **USAA not officially ranked by J.D. Power due to eligibility restrictions
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

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The home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.

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122

carriers reviewed

20.7K

ZIP codes examined

1.2M

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Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
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100% of homes
need insurance before getting a mortgage
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The top 5 home insurance companies in New Jersey

Best for military-focused coverage

4.7

Rating: 4.7 stars out of 5

Avg. premium for $250K dwelling

$68/mo

Avg. premium for $250K dwelling

$814/yr

Customer satisfaction

881/1,000

Best for discounts

4.2

Rating: 4.2 stars out of 5

Avg. premium for $250K dwelling

$80/mo

Avg. premium for $250K dwelling

$964/yr

Customer satisfaction

809/1,000

Best for green homes

4.1

Rating: 4.1 stars out of 5

Avg. premium for $250K dwelling

Not available

Avg. premium for $250K dwelling

Not available

Customer satisfaction

790/1,000

Best for local offices

4.2

Rating: 4.2 stars out of 5

Avg. premium for $250K dwelling

$74/mo

Avg. premium for $250K dwelling

$894/yr

Customer satisfaction

829/1,000

Best for affordable rates

4.5

Rating: 4.5 stars out of 5

Avg. premium for $250K dwelling

$49/mo

Avg. premium for $250K dwelling

$588/yr

Customer satisfaction

Not rated

Additional New Jersey home insurance companies to consider

Beyond the most popular picks, there are several other carriers that offer home insurance quotes in New Jersey that might resonate with specific homeowner needs and preferences. Whether you prioritize customer service, tailored policies or unique offerings, these options may warrant a closer look.

Progressive

Progressive

Who this may be best for

Homeowners looking for an expansive range of options

Progressive offers an expansive range of home insurance options suitable for the varied needs of New Jersey residents. Its policies may be beneficial for those seeking bundled insurance options, given Progressive's wide array of insurance offerings. If you have multiple insurance needs, Progressive might be an apt choice for robust coverage and potential discounts.

The Hanover

The Hanover

Who this may be best for

Homeowners looking for a blend of modern and traditional coverage options

Founded in 1852, The Hanover has a longstanding history in insurance. Its home insurance offerings are comprehensive, aiming to cater to a broad spectrum of homeowners. Those looking for a blend of traditional coverage options and modern policy additions may find The Hanover to be a suitable choice. With its reputation for responsive customer service and its ability to adapt policies based on individual needs, many New Jersey residents may find The Hanover to be an attractive option when seeking coverage.

How Bankrate chose the best home insurance companies in New Jersey

Bankrate took a data-based approach to finding the best homeowners insurance in New Jersey.. Our insurance editorial 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 their performance in these categories, each of these New Jersey homeowners insurance companies earned a Bankrate Score, with a maximum score of five points. Using our Bankrate Score can help give you an idea of which insurance companies have competitive home insurance policies and can be used to compare home insurance carriers to each other.

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Finding cheap home insurance in New Jersey

While New Jersey typically boasts rates below the national average, navigating the state's home insurance market can sometimes be a challenge. Which emphasizes the importance of seeking ways to save wherever possible. One effective strategy is to gather multiple quotes to compare and identify the most affordable options tailored to your needs. It's always advisable to review at least three or four different insurers to make sure you're securing the best quote for your situation. Back to top Caret Up

Cheapest home insurance companies in New Jersey

New Jersey homeowners may be pleasantly surprised to discover several insurance options that are both comprehensive and affordable. While coverage needs and individual circumstances play a role in pricing, some companies consistently stand out for offering competitive rates. Below, we've compiled a table highlighting cheap home insurance companies in New Jersey that are typically recognized for their budget-friendly home insurance packages.

Carrier Monthly premium for $250k coverage Annual premium for $250k coverage Savings vs state avg. for $250k coverage
Selective
$33
$395
- $521
Cumberland Mutual Fire
$36
$436
- $480
NJM
$49
$588
- $328
New Jersey Skylands
$55
$657
- $259
$66
$787
- $129
*based on $250K dwelling coverage

How to get cheap New Jersey home insurance

When you are looking for the best New Jersey homeowners insurance, cost is likely to be one of your considerations. Finding a policy that provides robust coverage at a reasonable price is not impossible, especially if you consider using some of these tactics:

  1. Shop around: You don’t have to settle for the first quote you get. Experts suggest getting quotes from multiple insurers so you can compare prices. Each insurer has its own way of calculating premiums, so you might find big differences in rates. Then, you can choose the cheapest option.
  2. Improve your credit score: In many states like New Jersey, insurers look at your credit-based insurance score to set your rate. Studies have found that people with lower credit scores tend to make more claims. So, if your insurer considers your credit-based insurance score, having poor credit could mean higher premiums for you.
  3. Maintain or replace your roof: Roof damage often leads to expensive insurance claims. That's why insurers usually ask about the age of your roof when you ask for a quote. A newer roof might get you a lower rate because it's less likely to get damaged in storms or high winds.
  4. Bundle your policies: Most insurers offer discounts if you buy more than one policy from them. The most common way to do this is by getting both your home and car insurance from the same company. By bundling, you could save up to 20 percent or even more.

Best home insurance discounts in New Jersey

In New Jersey, homeowners typically have access to a variety of insurance discounts that can significantly reduce their premiums. By understanding and taking advantage of these common discounts, residents might be able to save a considerable amount on their home insurance policies.

Anything you do to make your home safer, such as installing smoke detectors, theft prevention systems or sprinklers, could earn you a discount with many insurers due to the decreased claim risk.
Statistics show that house fires happen more often when there is a smoker in the house. If all the residents of your home are nonsmokers, you may net some savings.
The frequency of storms coming off the coast in New Jersey could make having reinforced home materials a good cause for savings from insurers. You may receive a discount from some insurers if you install impact-resistant glass in your windows.
If you make one annual payment of your entire premium for the year, your insurer may reward you with a discount. If you have a mortgage, your premium is most likely paid in full by your lender through an escrow account.
Senior-aged New Jersey residents may earn a discount based on their age.

How to save on home insurance policy renewals in New Jersey

Yearly policy renewals offer an ideal time for New Jersey homeowners to reassess their coverage needs and seek out potential savings. Whether you're a new homeowner or have been residing in your home for years, there are always ways to potentially lower your premiums.

  • Comparison shop: While loyalty to a single insurer might have its benefits, it can be a good idea to shop around and get quotes from multiple providers. Rates may vary, and another company could offer a better deal.
  • Bundle your policies: Many insurance companies typically offer discounts when you bundle home insurance with other policies like auto or life insurance.
  • Increase your deductible: If you can afford a higher out-of-pocket cost in the event of a claim, consider raising your deductible. A higher deductible usually means a lower premium.
  • Ask about discounts: Whether it’s for having a newer home, security systems or being claims-free, always ask your insurer about available discounts you might qualify for.
  • Maintain your home: Regular maintenance and repairs can decrease the likelihood of damage, and some insurers might reward that with reduced rates.
  • Review your policy: Ensure you’re not over-insuring or under-insuring. Adjust your coverage to reflect the current value of your possessions and your home.
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Understanding home insurance costs in New Jersey

The average home insurance cost in New Jersey is influenced by several factors, including location. The Garden State's close proximity to the Atlantic coastline means homes are potentially at risk of storm surges and hurricane-related damages, often leading to higher insurance premiums. Urban density, particularly in cities like Newark or Jersey City, can result in increased risks of theft and vandalism potentially hiking up insurance costs. Furthermore, New Jersey's property values, especially in certain sought-after residential areas, can mean pricier rebuild costs in the event of damages. Being aware of these specifics could help provide clarity when navigating the home insurance landscape in New Jersey. Back to top Caret Up

How much is home insurance in New Jersey?

The average premium cost for a homeowners insurance policy in New Jersey is $916 for $250,000 in dwelling coverage per year. This is significantly lower than the national average of $1,759, making New Jersey one of the most affordable states for homeowners insurance.

New Jersey has a lower cost of living compared to nearby states, which likely contributed to the lower cost of insurance. New Jersey’s average home insurance rates are especially affordable compared to the neighboring state of New York, which has an average home insurance cost of $1,728 per year for $250,000 in dwelling coverage. New Jersey’s average home insurance costs are about on par with the average cost of home insurance in Pennsylvania, which is $968  annually for the same coverage.

Insurance company $150K $250K $350K $450K $750
$599
$814
$1,005
$1,190
$1,729
$680
$964
$1,295
$1,697
$2,722
$641
$894
$1,085
$1,336
$1,992
NJM
$476
$588
$708
$837
$1,230

New Jersey homeowners insurance rates by city

Insurance rates can significantly vary even within state boundaries, influenced by city-specific conditions. Whether it's due to crime rates, proximity to hazardous zones or local building costs, every city in New Jersey might present a different premium. Below, we provide a map and a searchable data table to help you understand these city-by-city variations, giving you a clearer picture of potential rates in your ZIP code or another city in the Garden State you might be considering.

  • Greendell: $807 per year — 12 percent below state average
  • Middleville: $814 per year — 11 percent below state average
  • New Providence: $817 per year — 11 percent below state average
  • Berkeley Heights: $819 per year — 11 percent below state average
  • Princeton: $819 per year — 11 percent below state average
  • Middletown: $1,102 per year — 20 percent above state average
  • Toms River: $1,100 per year — 20 percent above state average
  • Chatsworth: $1,087 per year — 19 percent above state average
  • Newport: $1,081 per year — 18 percent above state average
  • Shrewsbury: $1,080 per year — 18 percent above state average

*Rates are for $250,000 in dwelling coverage.

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Insuring your New Jersey home

In the Garden State, where coastal proximity is a concern for many homes, choosing the right home insurance comes with unique considerations. The prevalence of extreme weather events combined with shifts in the insurance landscape may influence premium costs and coverage options. Delving into the specifics of how a standard policy responds to New Jersey's distinct challenges, such as storm surges or windstorms, can guide homeowners towards making informed choices to shield their financial investment in their home. Back to top Caret Up

What does home insurance cover in New Jersey?

In the dynamic climate of New Jersey, homeowners often find themselves facing a spectrum of risks, from Atlantic storms to winter freeze. Standard home insurance typically provides a safety net against a range of perils. Yet, given the state's unique challenges, it's essential for residents to understand what their policy covers. By doing so, they can identify potential gaps and consider additional coverage tailored to New Jersey's distinct conditions. Some commonly covered damages include:

  • Storm and wind damage: Given its Atlantic coastline, properties in New Jersey may frequently be exposed to storm surges and strong winds.
  • Fire and smoke damage: This standard coverage is essential, especially in densely populated areas where fires can spread quickly.
  • Theft and vandalism: This coverage kicks in against damages from property crimes, which might be more prevalent in urban areas.
  • Liability: Liability covers situations where someone is injured on your property or you cause damage to another's property.
  • Water damage from internal sources: While flooding from external sources like storm surges might not be covered under a standard policy, damages from issues like burst pipes typically are.
  • Weight of ice, snow or sleet: Given the state's cold winters, roofs and structures might suffer damage from the accumulation of snow or ice, which this coverage stands for.

Additional home insurance coverage types in New Jersey

As a coastal state, New Jersey sits perched on the Atlantic Ocean, leaving it vulnerable to specific risks. Hurricanes moving up the East Coast often bring damage to homes in the state, either from water damage or high winds. Wildfires are also not uncommon, especially in the northern parts of the state and the Pine Barrens. In many cases, these potential disasters are covered by a basic HO-3 policy, the most common kind sold. In other cases, such as flooding, you will need to purchase a separate policy to be covered. Here are common New Jersey endorsements or policy types for you to consider:

  • Flooding: New Jersey has around 630,000 properties that have a more than 26 percent 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, especially if you have a basement.
  • Identity theft: According to the Federal Trade Commission (FTC), fraud claims increased by more than 70 percent in 2021 compared to 2020. With financial crime through identity theft on the rise, some homeowners may want to add on identity theft coverage to their homeowners insurance policy.

Related content:

Common New Jersey home insurance problems

Securing reliable home insurance in New Jersey isn't always a straightforward process. The state presents unique challenges for both homeowners and insurers. Navigating these issues can often feel overwhelming, but understanding them is the first step toward finding the right coverage. These are some of the common challenges faced by homeowners in New Jersey:

  • Aging infrastructure: Many New Jersey homes, particularly in historic districts, are older and may be viewed as higher risk due to outdated electrical, plumbing and heating systems.
  • Urban density: In densely populated areas, issues like fire can spread quickly, increasing risks and subsequently, insurance premiums.
  • High property values: In certain upscale neighborhoods and coveted locations, the sheer value of homes can drive up the cost of coverage.
  • Frequent weather-related claims: From winter storms to coastal weather events, New Jersey sees a range of meteorological challenges that can lead to increased claims, making some insurers hesitant to offer competitive rates.

New

Recent news in New Jersey homeowners insurance market

On July 3, 2023, New Jersey took a decisive step towards enhancing transparency in the homeowners insurance market. Governor Phil Murphy signed bill S3110/A4783, mandating sellers of property and landlords to disclose vital flood risk information to potential buyers and tenants. This bill, which comes in the aftermath of the devastating Tropical Storm Ida, necessitates the revelation of a property’s history of flooding, its flood risk and its location concerning flood zones.

This development is pivotal for the state's homeowners market. It means that future real estate transactions will be characterized by a higher degree of openness, potentially affecting property valuations in flood-prone areas. Additionally, with heightened awareness about flood risks, there might be an uptick in demand for flood insurance, possibly influencing premium rates and the array of insurance offerings in the state.

This legislation underscores the importance of safeguarding New Jersey residents as climate change exacerbates flooding events, ensuring they're well-equipped with the necessary information to make informed housing decisions.

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Written by
Ashlyn Brooks

Ashlyn Brooks is a finance writer with more than half a decade of experience, known for her knowledge in areas such as taxes, insurance, investing, retirement, finance news, and banking products.

Edited by Editor, Insurance
Reviewed by Director of corporate communications, Insurance Information Institute