Best homeowners insurance companies in New Jersey for 2025
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Edited by
Reviewed by
Compare the best homeowners insurance companies in New Jersey
Residents of the Garden State will find that New Jersey's average home insurance rate stands favorably below the national average of $2,267 for $300,000 in dwelling coverage. In fact, the typical rate for homeowners insurance in New Jersey hovers around $1,193 annually, which translates to approximately $99 monthly. However, it's essential to recognize that the cost is just one piece of the puzzle in identifying the ideal insurance for your residence.
To pinpoint the best homeowners insurance in NJ, we considered third-party ratings such as the J.D. Power 2024 U.S. Home Insurance Study, premium data from Quadrant Information Services, coverage availability, discount opportunities and more. Our analysis revealed that USAA, NJM, Allstate, State Farm and Travelers are among the top providers in the state.
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737
/1,000 |
$88
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$1,060
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Not rated |
$63
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$752
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631
/1,000 |
N/A
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N/A
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643
/1,000 |
$106
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$1,271
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609
/1,000 |
N/A
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N/A
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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.
Bankrate's trusted insurance industry expertise
Read our full methodologyThe insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers the information they need to make educated decisions when shopping for a policy.
78
years of industry experience
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licensed staff
34.5K
ZIP codes examined
120
carriers reviewed
The top 5 home insurance companies in New Jersey
Best for military-focused coverage
4.8
Avg. premium for $300K dwelling
$88/mo
Avg. premium for $300K dwelling
$1,060/yr
Customer satisfaction
737/1,000
-
Why USAA made our list: 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 2024 U.S. Home Insurance Study. However, home insurance through USAA is only available to its members, and membership is limited to active-duty military, veterans and their eligible family members.
Who USAA may be good for: Service members who are stationed at Fort Dix, McGuire or any of New Jersey's other military installations may benefit from USAA insurance coverage. Coverage is military-focused, and includes, for example, coverage specifically for uniforms.
Best for low average rates
4.5
Avg. premium for $300K dwelling
$63/mo
Avg. premium for $300K dwelling
$752/yr
Customer satisfaction
Not rated
-
Why NJM made our list: NJM’s average rates are significantly lower than the state’s average. The West Trenton, N.J.-based company 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. However, NJM is not scored by J.D. Power.
Who NJM may be good for: For first-time homeowners who are on a stricter budget, NJM might be worth considering. It offers solid coverage options, but at an average rate that is well below the state average.
Best for discounts
4.2
Avg. premium for $300K dwelling
Not available
Avg. premium for $300K dwelling
Not available
Customer satisfaction
631/1,000
-
Why Allstate made our list: While some other insurance companies take a low-touch approach to customers, Allstate operates local agencies throughout New Jersey. It makes the claims process easy, giving you the option to call its nationwide claims center, contact your local agent or file from your smartphone using the Allstate mobile app. The company offers a wide range of discounts for potential savings. You could earn discounts by setting up an automatic payment system, going claims-free, installing smoke or theft alarms in your home or switching to Allstate from another insurer. However, average premiums are unavailable.
Who Allstate may be good for: The company's extensive discount opportunities may make it a good option for cheap home coverage. When shopping around for home insurance quotes in New Jersey, experts recommend speaking to an agent about discounts for which you’re eligible.
Best for local agents
4.1
Avg. premium for $300K dwelling
$106/mo
Avg. premium for $300K dwelling
$1,271/yr
Customer satisfaction
643/1,000
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Why State Farm made our list: State Farm is 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's average rates are higher than the state average. Additionally, the company’s number of complaints with the National Association of Insurance Commissioners (NAIC) has steadily increased over the last few years.
Who State Farm may be good for: If you'd rather handle your insurance business with a local agent who understands the needs of your community, State Farm may be a good choice for you. Having said that, the company also has a robust set of digital tools, including a mobile app, that make it easy to do your business online.
Best for green homes
4.0
Avg. premium for $300K dwelling
Not available
Avg. premium for $300K dwelling
Not available
Customer satisfaction
609/1,000
-
Why Travelers made our list: Travelers offers a wide range of potential discounts, including savings of up to 5 percent 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. Travelers also offers coverage for jewelry and valuable items, identity fraud and a personal articles floater. However, Travelers customer satisfaction score is lacking, per J.D. Power’s 2024 U.S. Home Insurance Study and 2024 U.S. Insurance Digital Experience Study.
Who Travelers may be good for: If environmental issues are high on your list of priorities, Travelers might be worth looking at. Even if you don't currently live in a certified green home, you may want to consider the green endorsement, which will allow you to rebuild using green materials after a claim.
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
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
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 NJ. 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 opportunities.
Based on performance in these categories, New Jersey homeowners insurance companies earned a Bankrate Score, with a maximum score of five points. Using our Bankrate Score can help compare home insurance carriers and determine which might be best for you.
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Powered by Coverage.com (NPN: 19966249)
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.
Cheapest home insurance companies in New Jersey
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.
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Selective
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$46
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$551
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- $642 |
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Cumberland Mutual Fire
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$60
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$717
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- $476 |
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US Coastal
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$61
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$729
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- $464 |
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$63
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$752
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- $441 |
|
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Philadelphia Contributionship
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$87
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$1,045
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- $148 |
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:
- 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.
- Improve your credit: 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.
- 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.
- 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.
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, you might consider raising your deductible. A higher deductible usually means a lower premium. However, keep in mind that you should be able to comfortably afford paying the higher deductible out of pocket.
- Ask about discounts: Whether it’s for having a newer home, security systems or being claims-free, it might pay to ask your insurer about discounts you 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.
How much is home insurance in New Jersey?
The average premium cost for a homeowners insurance policy in New Jersey is $1,193 for $300,000 in dwelling coverage per year. This is significantly lower than the national average of $2,267, 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 $1,843 per year for $300,000 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 $1,245 annually for the same coverage.
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|---|---|---|---|---|---|
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$687
|
$1,060
|
$1,170
|
$1,391
|
$2,009
|
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N/A
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N/A
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N/A
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N/A
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N/A
|
|
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$830
|
$1,271
|
$1,408
|
$1,728
|
$2,545
|
|
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$544
|
$752
|
$824
|
$976
|
$1,431
|
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.
- Long Valley: $957 per year — 20 percent below state average
- Florham Park: $962 per year — 19 percent below state average
- New Vernon: $963 per year — 19 percent below state average
- Stirling: $964 per year — 19 percent below state average
- Chester: $965 per year — 19 percent below state average
- Brigantine: $1,813 per year — 52 percent above state average
- Atlantic City: $1,778 per year — 49 percent above state average
- Ventnor City: $1,758 per year — 47 percent above state average
- Margate City: $1,743 per year — 46 percent above state average
- Longport: $1,728 per year — 45 percent above state average
*Rates are for $300,000 in dwelling coverage.
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 perils include:
- Storm and wind damage: Given its Atlantic coastline, properties in New Jersey may be exposed to storm surges and strong winds.
- Fire and smoke damage: In densely populated areas, fires can spread quickly.
- Theft and vandalism: Property crime might be more prevalent in urban areas.
- Liability: Liability coverage applies to 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, damage from issues like burst pipes typically are.
- Weight of ice, snow or sleet damage: Given the state's cold winters, roofs and structures might suffer damage from the accumulation of snow or ice.
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: Of all the coastal states, New Jersey has the highest number of affordable housing units that are exposed to sea-level rise and flooding, according to a 2020 scientific study. 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 covered by a standard homeowner’s policy, so it may be worth considering even if it’s not required. Note that if you’re purchasing a home in a federally designated flood zone, your mortgage lender may require you to purchase flood insurance.
- 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, the cost of fraud claims hit $10 billion dollars in 2023, up 14 percent from 2022. With financial crime through identity theft on the rise, some homeowners may want to add 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
In July 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 premiums and companies willing to serve the state.
At the same time, homeowners in New Jersey have seen their homeowners insurance premiums increase by an average of $620 per year since 2020. In 2023, home insurance providers in the state filed requests for rate increases ranging from 7 percent to 94 percent. Although these requests were met with approvals ranging from 7 percent to 20 percent, this could mean a steep increase in costs for New Jersey homeowners.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze April 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates for our base profile are based on the following characteristics and coverage levels:
Dwelling coverage
$300,000Other structures coverage
$30,000Personal property coverage
$150,000Loss of use coverage
$60,000Liability coverage
$500,000Medical payment coverage
$1,000The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Additional profiles:
- Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
- Coverage B, Other Structures: $15,000, $35,000, $45,000, $75,000
- Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
- Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
- Coverage E, Liability: $500,000
- Coverage F, Medical Payments: $1,000
Bankrate Scores
Our Bankrate Score considers variables our insurance editorial team determined impact 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.
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. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
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Cost & ratings 50%
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Coverage & savings 30%
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Support 20%
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average 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, Demotech 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.
Tier scores are unweighted to show the company's true score in each category out of a possible five points.
