Not all renters insurance is the same. Coverage for personal property and bodily injury are standard in most policies, but prices and discounts vary. Many insurers also offer additional coverage options. Because of these differences, it’s important to shop around for the coverage that suits you.
According to the Insurance Information Institute, renters make up over one-third of the US housing market. New Jersey is a state with one of the highest percentage of renters spending over 30% of their income on rent. If damage occurs to your dwelling, the landlord’s insurance will cover repairs. Renters insurance covers damage to you or your personal belongings.
The top New Jersey renters insurance companies
The companies we selected as the best insurance providers for renters in New Jersey are within the top five performers from JD Power & Associates 2019 Customer Satisfaction Survey. All have a Better Business Bureau A+ rating and at least an A rating with AM Best. All save for one exception, a relative new-comer in the insurance industry with a unique approach that is gaining traction with consumers.
- American Family: American Family Insurance received JD Power & Associates’ most recent award for highest customer satisfaction ranking. In addition to renters insurance, the company offers a wide range of traditional insurance products. This provides plenty opportunity for New Jersey renters to bundle your renters’ insurance with other types of insurance for a discount. American Family is an A-rated insurer with AM Best and a BBB A+ rated provider.
- Lemonade: Lemonade is a recent newcomer in the renters insurance industry, and it’s one of the cheapest. The company advertises rates starting as low as $5 per month. Lemonade is gaining high ratings from consumers. Its claim to fame is an easy-to-use app, through which you can purchase renters insurance in 90 seconds. Lemonade is a peer-to-peer insurance provider, meaning premiums go into a collective pool and Lemonade uses money from that pool to pay claims for policyholders who suffer covered losses. Lemonade also donates its profits to charities and causes of your choice in their Giveback program.
- State Farm: State Farm has been in the business of insurance for over 100 years. State farm offers many other traditional insurance types and ranks high in overall satisfaction with JD Power & Associates. You can easily receive a quote and purchase online, but New Jersey has a plethora of local representative offices. All New Jersey locations are rated as A+ by the BBB. The company is an A-rated company with AM Best. Standard renters insurance includes mold protection as a nice bonus.
- USAA: USAA is the only renters insurance provider besides American Family to score the highest possible customer satisfaction ratings with JD Power & Associates. Also a provider with an A++ rating from the Better Business Bureau and an AM Best A Rating, this provider is the best option for military families in New Jersey. USAA’s long history of high customer satisfaction with all elements of its service recommends this provider to any qualifying renter in New Jersey.
|Company||JD Power & Associates rating||BBB rating||AM Best rating|
|American Family||5 out of 5||A+||A|
|Lemonade||Not rated||A+||Not rated|
|State Farm||5 out of 5||A+||A|
|USAA||5 out of 5||A+||A++|
Average price of New Jersey renters insurance
To judge the average cost of insurance per provider, we went through the quote process ourselves. Using a scenario for a relatively new apartment build in Northern New Jersey, we assumed a full-time employed residence with standard safety features like deadbolts and fire alarms and no pets. Each quote included $20,000 in personal property coverage and $100,000 in personal liability coverage.
- American Family: $11.68 per month
- Lemonade: $8.09 per month
- State Farm: $10.50 per month
- USAA: Get a quote from a representative if you are a member of the military
Insurance premiums for renters insurance are custom. If you have pets, multiple family members, use additional safety features in your home like a burglar alarm service, these factors could affect your premium.
Demographics are also a factor. New Jersey ranks third among US states in terms of the percentage of its renters spending 30% or more of their income on rent. However, New Jersey also has a higher percentage of renters overall compared to more than half the states in the US. As a state, New Jersey also ranks high in median income, far above the national average and its neighbors in New Year and Pennsylvania. This is a key factor keeping renters insurance premiums in New Jersey lower than the national average.
Here is New Jersey’s average renters insurance premium compared to premiums in nearby states.
|Location||Average renters insurance cost|
Renters insurance coverage options in New Jersey
Similar to homeowners insurance, renters insurance includes three key types of standard coverage plus custom add-ons. Unlike homeowner’s insurance, renters insurance does not cover the structure or dwelling. Renters insurance is thus protection for your person and your belongings.
Standard coverage typically includes:
- Personal liability: This refers to bodily injury or property damage to other people (or their stuff) as a result of your actions, at your home and anywhere else.
- Personal property: This coverage insures your belongings in the case of damage. It even covers the belongings of your guests in the event their things are damaged while visiting.
- Additional living expenses (ALE): This coverage provides coverage if your home is destroyed by an insured disaster and you need to live elsewhere for a time.
Frequently asked questions
What is the best renters insurance in New Jersey?
The best New Jersey renters insurance for you depends on individual factors and the priorities you care about the most. Get several quotes and ask about coverage options to decide which one will be the best for your needs.
How do I get renters insurance in New Jersey?
A quick online search will yield multiple providers ready to give you a quote online. All the providers mentioned in this article provide fast methods for gaining an online quote and buying renters insurance. After you get quotes and decide which company you want to go with, the company will guide you through the process to purchase your coverage.
Is renters insurance required in New Jersey?
Renters insurance is not required by law. However, check with your landlord because many are beginning to include a renters insurance requirement with leasing agreements.
How much New Jersey renters insurance should I buy?
Creating a detailed list of your belongings and an estimate of their value is the best way to determine how much coverage you require in the instance of a covered disaster. Basic coverage plans typically start with $20,000 in personal property coverage.