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Best homeowners insurance in New Jersey for 2023

Based on Bankrate's extensive research, USAA, Allstate, Travelers, State Farm and NJM offer some of the best homeowners insurance in New Jersey

Updated Apr 10, 2023
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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
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
AM Best
A++
J.D. Power score
884
/1,000
Average monthly premium
$61
Average annual premium
$726
Get a quote
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
AM Best
A+
J.D. Power score
815
/1,000
Average monthly premium
$81
Average annual premium
$977
Get a quote
Travelers
Rating: 3.3 stars out of 5
3.3
Bankrate Score
Info
AM Best
A++
J.D. Power score
794
/1,000
Average monthly premium
$47
Average annual premium
$565
Get a quote
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
AM Best
A++
J.D. Power score
829
/1,000
Average monthly premium
$63
Average annual premium
$760
Read review
NJM
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
AM Best
A+
J.D. Power score
Not rated
Average monthly premium
$31
Average annual premium
$371
Read review
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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.

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

The top five home insurance companies in New Jersey

Best for military-focused coverage

Rating: 3.7 stars out of 5
3.7 Bankrate Score
JD Power: 884 AM Best: A++

Average annual premium

$ 726 for $250k dwelling
USAA Review

Explore Bankrate's review

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 2022 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 discounts

Rating: 3.5 stars out of 5
3.5 Bankrate Score
JD Power: 815 AM Best: A+

Average annual premium

$ 977 for $250k dwelling
Allstate Review

Explore Bankrate's review

Why Allstate made our list: 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.

Who Allstate may be good for: Even though Allstate's average rate is on the high side, the company's extensive discount list may make it a good option for those looking for cheap New Jersey homeowners insurance companies. Since quotes are free, there's no harm in seeing if the company can offer you a low rate with multiple discounts.

Best for green homes

Rating: 3.3 stars out of 5
3.3 Bankrate Score
JD Power: 794 AM Best: A++

Average annual premium

$ 565 for $250k dwelling
Travelers Review

Explore Bankrate's review

Why Travelers made our list: 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.

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 house, you may want to consider the green endorsement, which will allow you to rebuild using green materials after a claim.

Best for local offices

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: 829 AM Best: A++

Average annual premium

$ 760 for $250k dwelling
State Farm Review

Explore Bankrate's review

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 on the high side. Additionally, the company has a higher-than-baseline number of complaints with the National Association of Insurance Commissioners (NAIC).

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 affordable rates

Rating: 3.2 stars out of 5
3.2 Bankrate Score
JD Power: Not rated AM Best: A+

Average annual premium

$ 371 for $250k dwelling
NJM Review

Explore Bankrate's review

Why NJM made our list: NJM offers an average home insurance rate that is less than half the state 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 rated by J.D. Power.

Who NJM may be good for: For young homeowners who are pinching pennies after a home purchase, NJM might be worth considering. It offers solid coverage options but at an average rate that is well below the state 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 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

$150K
$541
$250K
$726
$350K
$891
$450K
$1,050
$750K
$1,517
$150K
$656
$250K
$977
$350K
$1,526
$450K
$2,184
$750K
$3,922
$150K
$545
$250K
$760
$350K
$921
$450K
$1,135
$750K
$1,772
$150K
$405
$250K
$565
$350K
$744
$450K
$951
$750K
$1,582
NJM
$150K
$260
$250K
$371
$350K
$507
$450K
$678
$750K
$1,198
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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.

Homeowners insurance rates vary depending on your ZIP code. You may pay a higher rate, for example, if you live in an area with a high crime rate, since your insurer will expect there to be more claims based on theft. On the other hand, if you live in an area with low crime and few natural disasters, your rate is more likely to be on the low side. Here are some of the cheapest cities in New Jersey, all of which have average rates that are 10 percent less than the state average:

  • Greendell: $697 per year
  • Middleville: $697 per year
  • Cranbury: $698 per year
  • Princeton: $698 per year
  • Dunellen: $700 per year

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

If you live in any of the following cities, your rates may be slightly higher than the average. Keep in mind, however, that your rate is unlikely to be exactly the same as the averages, since your premium is unique to your own property and situation. These cities all feature average rates that are 14 percent higher than the state average.

  • Middletown: $887 per year
  • Shrewsbury: $886 per year
  • Red Bank: $883 per year
  • Salem: $882 per year
  • Toms River: $880 per year

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

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

Written by
Mary Van Keuren
Insurance Contributor

Mary Van Keuren has written for insurance domains such as Bankrate, Coverage.com, and The Simple Dollar for the past five years, specializing in home and auto insurance. She has also written extensively for consumer websites including Reviews.com and Slumber Yard. Prior to that, she worked as a writer in academia for several decades.

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