Best homeowners insurance in New Jersey for 2023

Compare the best homeowners insurance companies in New Jersey

The average cost of New Jersey home insurance is $775 annually for $250,000 in dwelling coverage. This works out to roughly $65 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, 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 2022 U.S. 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.

*USAA not officially ranked by J.D. Power due to eligibility restrictions

The top five home insurance companies in New Jersey

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.

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 $1,428, 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 $1,506 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 $760  annually for the same coverage.

Average annual premium by dwelling coverage level in New Jersey

How to find the best cheap home insurance in New Jersey

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: Don't stop after receiving a single quote, but instead gather quotes from several insurers so you can compare rates. Every insurer uses their own algorithms to determine premiums, so you may see significant differences in the rates you receive, and can then choose the lowest option.
2. Improve your credit score: Insurers may check your credit-based insurance score before determining your rate (in most states). Studies have shown that people with lower credit scores tend to file more claims, so having poor credit could cost you in terms of premiums if your state allows insurance companies to use your insurance score as a factor.
3. Maintain or replace your roof: Roof damage is a common cause of costly insurance claims. This is why your insurer is likely to ask you how old your roof is when requesting a quote. A newer roof may earn you a lower rate because it is less likely to be damaged in storms or windy weather.
4. Bundle your policies: Almost all insurers offer savings if you purchase more than one policy from them. The most common way this occurs is when you buy your homeowners and your vehicle coverage from the same company. Doing so may save you up to 20 percent or even more.

Common home insurance discounts in New Jersey

We have already mentioned the common bundling discount, but what about other possibilities? Most home insurance companies offer a handful of discounts, and they may be fairly easy to earn. Some that are frequently seen at New Jersey homeowners insurance companies include the following:

Types of home insurance 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 damages to the state, either from flooding 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 an optional endorsement or separate policy to be covered. Here are common New Jersey endorsements or policy types for you to consider:

• 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, especially if you have a basement.
• 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