What is the cheapest homeowners insurance in New Jersey?

It’s important to understand that home insurance rates are subjective because factors such as location can greatly affect premiums. However, Bankrate’s analysis of average rate data from Quadrant Information Services showed that NJM offers some of the cheapest homeowners insurance in New Jersey, at an average price of $373 per year for $250,000 in dwelling coverage. Travelers also offers cheap average rates on homeowners insurance in New Jersey, with an average annual cost of $637 for $250,000 in dwelling coverage. Keep in mind, though, that your rate will likely differ from the average due to a number of factors.

Is home insurance in New Jersey expensive?

On average, New Jersey homeowners insurance rates are cheaper than the national average. The average cost of homeowners insurance nationwide is $1,383 per year for $250,000 in dwelling coverage, while the average cost of a policy with the same coverage in New Jersey is $775 per year. Your rate for homeowners insurance in New Jersey could be higher or lower than the state average based on a range of factors, like the size of your home, the condition, and other factors. Any additional coverage options that you add to your policy may also increase the cost of your policy.

How much personal liability coverage should I purchase?

With most insurance companies, standard personal liability coverage is typically offered in a range of $100,000 to $500,000. The amount you should purchase, however, is unique to your needs and will typically be dependent on a few factors. For example, you may have a swimming pool in your backyard or enjoy hosting guests. In these cases, higher liability coverage may be useful to cover injuries that occur to guests in your home. An insurance agent may be a useful resource to help you understand the amount of personal liability coverage you need.

What natural disasters are addressed by my homeowners insurance policy?

You may be wondering what disasters your home insurance covers. Homeowners insurance policies differ on the type of damages they cover. Most homeowners insurance policies will cover damages caused by fire, rain and wind, while flood and earthquake coverage will typically have to be purchased as separate policies or endorsements. However, your individual homeowners insurance company may work differently. As such, you may want to review your homeowners insurance policy with an insurance agent to make sure you know which damages are covered.

Best Homeowners Insurance in New Jersey for 2023

With an average annual premium of $775 per year for $250,000 dwelling coverage, homeowners insurance rates in New Jersey are 44% cheaper than the national average rate of $1,383. However, Bankrate knows that, while important, low rates aren’t the only factor when looking for the best coverage. Our insurance editorial staff (including four licensed property and casualty agents with almost 50 years of combined experience) evaluated companies across the Garden State, studying metrics like customer satisfaction, digital tools, coverage options and more. According to our research, you may find the best homeowners insurance in New Jersey by shopping with USAA, State Farm, New Jersey Manufacturers (NJM), Allstate or Travelers.

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Key takeaways

NJM and Travelers had some of the cheapest average rates in New Jersey, according to Bankrate’s analysis of premium data.
Both NJM and Travelers also ranked as two of the best New Jersey homeowners insurance options.
Although New Jersey may face severe weather patterns year-round, the average cost for homeowners insurance in the state is still lower than the national average.

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 also earned a Bankrate Score, with a maximum score of 5 points. Using our Bankrate Score can help give an idea of which insurance companies have competitive home insurance policies and can be used to compare home insurance carriers to each other.

Bankrate utilizes Quadrant Information Services to analyze 2022 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 homeowners with a clean claim history 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.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our homeowners: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts.

Other dwelling coverage limits

Bankrate utilizes Quadrant Information Services to analyze 2021 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: $150,000, $250,000, $350,000, $450,000
- Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000
- Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000
- Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000
- 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). Depending on your dwelling coverage limit, you may need to have a higher deductible.

These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Bankrate Scores 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.

Best home insurance companies in New Jersey

USAA, NJM and State Farm earned the top Bankrate Scores, based on our extensive analysis of third-party ratings such as the J.D. Power 2022 U.S. Home Insurance Study, premium data, and other factors. Allstate and Travelers weren’t far behind. Allstate scored well in customer service satisfaction based on J.D. Power rankings and Travelers ranked as one of the cheapest home insurance rates in New Jersey.

Insurance company	J.D. Power	AM Best	Average monthly premium	Average annual premium
USAA Rating: 3.7 stars out of 5 3.7 Bankrate Score	J.D. Power 884 /1,000	AM Best A++ (Superior)	Average monthly premium $64	Average annual premium $770	Get a quote
State Farm Rating: 3.2 stars out of 5 3.2 Bankrate Score	J.D. Power 829 /1,000	AM Best A++ (Superior)	Average monthly premium $65	Average annual premium $779	Read review
NJM Rating: 3.2 stars out of 5 3.2 Bankrate Score	J.D. Power Not rated	AM Best A+ (Superior)	Average monthly premium $31	Average annual premium $373	Read review
Allstate Rating: 3.5 stars out of 5 3.5 Bankrate Score	J.D. Power 815 /1,000	AM Best A+ (Superior)	Average monthly premium $79	Average annual premium $953	Get a quote
Travelers Rating: 3.3 stars out of 5 3.3 Bankrate Score	J.D. Power 794 /1,000	AM Best A++ (Superior)	Average monthly premium $53	Average annual premium $637	Get a quote

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Advertising Disclosure

This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Insurance Disclosure

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.

*Average rates are for annual policies with $250,000 in dwelling coverage
USAA not officially ranked with J.D. Power due to eligibility restrictions

Best home insurance company for military-focused coverage

USAA

3.7 Bankrate Score

USAA Insurance review

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J.D. Power:: 884 /1,000
AM Best:: A ⁺⁺
Avg. annual premium for 250k dwelling: ^$ 770

USAA provides comprehensive homeowners coverage with a list of discounts and coverage that is tailored to the needs of military members. While USAA is not eligible for official ranking due to its membership requirement, the company generally receives some of the highest scores out of the rated New Jersey home insurers, and it received one of the highest customer satisfaction scores in J.D. Power’s 2022 home insurance study. However, home insurance through USAA is only available to its members, and membership is limited to active military, veterans and their eligible family members.
Pros
Unique coverage options tailored for military needs

Consistently high J.D. Power customer satisfaction scores
Cons
Strict eligibility requirements

Primarily does business over the phone and online, so may not be the best choice for shoppers who prefer to do business in person

New Jersey city	USAA average annual premium for $250K dwelling
Elizabeth	$709
Jersey City	$760
Newark	$729
Paterson	$686
Toms River	$960

USAA Insurance review

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Best home insurance company for local offices

State Farm

3.2 Bankrate Score

State Farm Insurance review

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J.D. Power:: 829 /1,000
AM Best:: A ⁺⁺
Avg. annual premium for 250k dwelling: ^$ 779

State Farm is also known for offering a wide range of home insurance coverage types and helpful online resources where you can learn more about what your homeowners insurance policy covers. For those who like a more personal touch, there are hundreds of State Farm offices located throughout New Jersey. However, budget-conscious shoppers may notice that State Farm may not be the cheapest homeowners insurance company in New Jersey. Additionally, the company has a higher-than-baseline number of complaints with the National Association of Insurance Commissioners (NAIC).
Pros
Many State Farm agencies available for an in-person experience

Strong digital presence via mobile app and customer-friendly website
Cons
May not be the cheapest option

More overall complaints with the NAIC than some competitors

New Jersey city	State Farm average annual premium for $250K dwelling
Elizabeth	$733
Jersey City	$958
Newark	$903
Paterson	$878
Toms River	$746

State Farm Insurance review

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Best home insurance company for affordable rates

NJM

3.2 Bankrate Score

NJM Insurance review

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J.D. Power:: Not rated
AM Best:: A ⁺
Avg. annual premium for 250k dwelling: ^$ 373

NJM is a regional insurer that offers several discount options, including one for seniors and others for installing storm shutters and hurricane-resistant glass. These discounts may be attractive to New Jersey residents who experience storms and hurricanes sweeping in from the Atlantic Ocean. You can personalize your homeowners insurance policy by adding endorsements, or riders, for identity fraud, mold and rot and increased personal property coverage for expensive items such as furs and jewelry. Homeowners may find that NJM offers average home insurance rates that are lower than the state average. However, NJM is not rated by J.D. Power.
Pros
Low average premiums

As a regional insurer, may be more in tune with the local market
Cons
Not rated by J.D. Power

Few digital tools, and no full-service mobile app

New Jersey city	NJM average annual premium for $250K dwelling
Elizabeth	$119
Jersey City	$596
Newark	$561
Paterson	$635
Toms River	$561

NJM Insurance review

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Best home insurance company for discounts

Allstate

3.5 Bankrate Score

Allstate Insurance review

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J.D. Power:: 815 /1,000
AM Best:: A ⁺
Avg. annual premium for 250k dwelling: ^$ 953

While some other insurance companies take a low-touch approach to customers, Allstate operates local agencies throughout New Jersey. Allstate also makes the claims process easy, giving you the option to call their nationwide claims center, contact your local agent or file from your smartphone using the Allstate mobile app. Allstate offers a wide range of discounts, which could dramatically decrease your premiums. 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 homeowners insurance company from another insurer. However, Allstate’s premiums are higher-than-average, so depending on your discount eligibility, it may not be the best fit for homeowners who prioritize cheap rates.
Pros
Long list of potential discounts

Company offers many different ways to communicate, including local offices, a mobile app, website and contact centers
Cons
Average premium higher than the New Jersey average

Scored lower than segment average for customer satisfaction per J.D. Power

New Jersey city	Allstate average annual premium for $250K dwelling
Elizabeth	$841
Jersey City	$1,196
Newark	$1,196
Paterson	$1,196
Toms River	$955

Allstate Insurance review

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Best home insurance company for green homes

Travelers

3.3 Bankrate Score

Travelers Insurance review

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J.D. Power:: 794 /1,000
AM Best:: A ⁺⁺
Avg. annual premium for 250k dwelling: ^$ 637

In addition to low average premiums, Travelers offers a wide range of potential discounts, including a savings of up to 5% for LEED-certified homes. In addition, Travelers offers a unique endorsement option that covers the extra cost associated with repairing or rebuilding a home using green materials. If you don’t need environmentally-friendly coverage options, Travelers also offers coverage for jewelry and valuable items, identity fraud and a personal articles floater. However, before buying, you may want to consider that Travelers received a low customer satisfaction score from J.D. Power, and ranked far below the segment average in the J.D. Power 2022 U.S. Insurance Digital Experience Study.
Pros
Endorsement options available for green homes

Average premium lower than other companies we studied
Cons
Low customer satisfaction ratings, according to J.D. Power

Digital tools may be subpar based on the results of J.D. Power’s most recent digital experience study

New Jersey city	Travelers average annual premium for $250K dwelling
Elizabeth	$663
Jersey City	$798
Newark	$664
Paterson	$431
Toms River	$1,073

Travelers Insurance review

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How much is homeowners insurance in New Jersey?

The average premium cost for a homeowners insurance policy in New Jersey is $775 for $250,000 in dwelling coverage per year. This is significantly lower than the national average of $1,393, making New Jersey one of the most affordable states for homeowners insurance. There are likely a few reasons that the average cost of home insurance is so low in this state. For example, 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 $1,289 per year for $250,000 in dwelling coverage. New Jersey’s average home insurance costs are also cheaper than Delaware, but the state is about on par with the average cost of home insurance in Pennsylvania, which is $786 annually for the same coverage.

New Jersey City AVERAGE ANNUAL PREMIUM FOR $250K DWELLING COVERAGE

Elizabeth $766

Jersey City $847

Newark $890

Paterson $858

Toms River $921

New Jersey City	AVERAGE ANNUAL PREMIUM FOR $250K DWELLING COVERAGE
Elizabeth	$766
Jersey City	$847
Newark	$890
Paterson	$858
Toms River	$921

Home insurance in New Jersey

With severe weather impacts year-round, a well-rounded New Jersey homeowners insurance policy could make a significant difference. In the summer, the potential of strong hurricanes can negatively impact insurance premiums, particularly in Jersey Shore communities. In the winter, nor’easters and other severe storms due to catastrophic winds and the heavy weight of snow and ice buildup can cause property damage to the roofs of homes. Tornadoes are also prevalent in New Jersey in the spring, summer and fall.

Common causes of loss in New Jersey

Common property losses that are typically seen with home insurance claims in New Jersey include:

Storms and hurricanes: 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. 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 either need or want flood insurance. If you need assistance preparing for a hurricane, you may want to consult a disaster preparedness guide to make sure you’re stocking up on necessary goods or evacuating in time.
Wildfires: Wildfires can impact those who live in more rural or heavily wooded areas of the Garden State. 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.
Snow: New Jersey is snowier than 26 other states in the country, according to the World Population Review. Snow can cause water damage, flooded basements and more.
High winds: New Jersey sometimes experiences high-wind events, which can cause power outages and other issues. Protecting yourself financially against potential windstorms may be smart.

Fortunately, New Jersey is not a high-risk state for earthquakes, although small tremblers occur occasionally. The most severe earthquake ever recorded in the state was a 4.8 quake in 1938. New Jersey is also far from “Tornado Alley” in the Midwest, but occasionally experiences tornado outbreaks, including in July 2021 in areas near the Delaware River.

Home insurance coverage options in New Jersey

As a coastal state, New Jersey sits perched on the Atlantic Ocean, leaving it vulnerable to specific risks.

Flooding: New Jersey has nearly 500,000 properties that have a 26% 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.
Identity theft: According to the Federal Trade Commission (FTC), fraud claims increased by more than 70% 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.

Frequently asked questions

It’s important to understand that home insurance rates are subjective because factors such as location can greatly affect premiums. However, Bankrate’s analysis of average rate data from Quadrant Information Services showed that NJM offers some of the cheapest homeowners insurance in New Jersey, at an average price of $373 per year for $250,000 in dwelling coverage. Travelers also offers cheap average rates on homeowners insurance in New Jersey, with an average annual cost of $637 for $250,000 in dwelling coverage. Keep in mind, though, that your rate will likely differ from the average due to a number of factors.
On average, New Jersey homeowners insurance rates are cheaper than the national average. The average cost of homeowners insurance nationwide is $1,383 per year for $250,000 in dwelling coverage, while the average cost of a policy with the same coverage in New Jersey is $775 per year. Your rate for homeowners insurance in New Jersey could be higher or lower than the state average based on a range of factors, like the size of your home, the condition, and other factors. Any additional coverage options that you add to your policy may also increase the cost of your policy.
With most insurance companies, standard personal liability coverage is typically offered in a range of $100,000 to $500,000. The amount you should purchase, however, is unique to your needs and will typically be dependent on a few factors. For example, you may have a swimming pool in your backyard or enjoy hosting guests. In these cases, higher liability coverage may be useful to cover injuries that occur to guests in your home. An insurance agent may be a useful resource to help you understand the amount of personal liability coverage you need.
You may be wondering what disasters your home insurance covers. Homeowners insurance policies differ on the type of damages they cover. Most homeowners insurance policies will cover damages caused by fire, rain and wind, while flood and earthquake coverage will typically have to be purchased as separate policies or endorsements. However, your individual homeowners insurance company may work differently. As such, you may want to review your homeowners insurance policy with an insurance agent to make sure you know which damages are covered.

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Best homeowners insurance in New Jersey for 2023

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Best home insurance companies in New Jersey

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NJM

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How much is homeowners insurance in New Jersey?

New jersey homeowners insurance rates by city

Home insurance in New Jersey

Common causes of loss in New Jersey

Home insurance coverage options in New Jersey

Frequently asked questions

What is the cheapest homeowners insurance in New Jersey?

Is home insurance in New Jersey expensive?

How much personal liability coverage should I purchase?

What natural disasters are addressed by my homeowners insurance policy?

Best homeowners insurance in nearby states