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Best homeowners insurance in New Jersey for 2023

Updated Jan 03, 2023
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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.

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.

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

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

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

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Best home insurance company for local offices

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

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Best home insurance company for affordable rates

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

Explore Bankrate's review

Best home insurance company for discounts

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

Explore Bankrate's review

Best home insurance company for green homes

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

Explore Bankrate's review

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.

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

Written by
Carol Pope
Insurance Writer

Carol Pope is an insurance writer for Bankrate and prior to joining the team, she spent 12 years as an auto insurance agent. During this time, she sold, serviced and underwrote auto insurance for people across the country. She also has experience selling supplement coverage such as umbrella insurance.

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