Best renters insurance in New Jersey
If you’re a tenant in New Jersey, renters insurance might be worth considering. This type of policy is purchased by the renter and provides financial protection against the loss of their belongings due to any of the named perils within the policy. Although the property owner should also have landlord insurance, that type of policy only protects the property and not the belongings of the renter living there. Bankrate has reviewed and ranked several local carriers to help you find renters insurance in New Jersey that suits your needs.
Best renters insurance companies in New Jersey
When selecting the best insurance providers for renters in New Jersey, we compared pricing, customer satisfaction scores from the J.D. Power 2024 U.S. Home Insurance Study and AM Best financial strength ratings. AM Best financial strength ratings indicate a company’s historical ability to pay claims, which could be a helpful indicator of what to expect for future claims. Following are some of the top companies offering renters insurance in NJ.
| Insurance company | Best for | J.D. Power score | AM Best score |
|---|---|---|---|
| Allstate | Budget-friendly options | 639/1,000 | A+ (Superior) |
| Lemonade | Digital experience | 682/1,000 | Not scored |
| Liberty Mutual | Discount opportunities | 625/1,000 | A (Excellent) |
| State Farm | Flexible customer service | 679/1,000 | A++ (Superior) |
| USAA* | Military-focused coverage | 724/1,000 | A++ (Superior) |
*Not officially ranked with J.D. Power due to eligibility restrictions
Allstate
Best for: Budget-friendly options
Allstate offers a renters policy covering both damage to your personal property due to covered events and injury if you have a guest visiting your property. Additionally, if your home becomes uninhabitable due to a covered loss, the policy offers additional living expenses coverage to help you during your temporary relocation. The policy can be managed either through speaking with customer service or a local agent, online or through the app, making policy management as convenient as possible.
Standout features:
- Discount for bundling with your auto policy with renters policies.
- Standalone renters policies average $16 per month.
Learn more: Allstate Insurance review
Lemonade
Best for: Digital experience
Lemonade advertises some of the cheapest rates. While its newer status means it doesn’t have an AM Best rating yet, the company received the third-highest customer satisfaction rating in the renters insurance segment of J.D. Power’s 2024 U.S. Home Insurance Study. Lemonade features a robust app, through which you can purchase renters insurance in 90 seconds, according to the company. It 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 experience covered losses. Lemonade also donates a portion of its profits to charities through its Giveback program.
Standout features:
- All-digital experience, making it easy for those who prefer to manage a policy on their own.
- Money from unused premiums is donated to charitable causes. Lemonade has given back over $10 million through this program.
Learn more: Lemonade Insurance review
Liberty Mutual
Best for: Discount opportunities
Liberty Mutual offers renters insurance and a wide range of other insurance products, as well as several discount opportunities. The company offers standard renters insurance coverage options and several endorsements. Customers can choose between ACV and RCV policies and added coverage options for personal belongings. Policyholders can manage their coverage digitally through the company’s website or app or may utilize one of the carrier’s local agencies to communicate in person with an agent. However, Liberty Mutual ranked toward the bottom of J.D. Power’s customer satisfaction studies on renters and homeowners insurance, so would-be customers may benefit from asking current customers about their experience with the company.
Standout features:
- Maintains over 200 local agencies throughout the U.S.
- Offers a variety of discounts and endorsements in many states.
Learn more: Liberty Mutual Insurance review
State Farm
Best for: Flexible customer service
State Farm has been in the business of insurance for over 100 years. With State Farm, you can include inflation protection on your renters insurance policy, which increases your coverage limits to match higher costs of living and inflation. You can easily receive a quote and purchase a policy online, but New Jersey has a plethora of local agents if you prefer to handle business in person. If you combine your auto insurance with State Farm renters insurance, you could save on both policies.
Standout features:
- Inflation coverage is included, which automatically increases coverage amounts each year based on rising cost of living expenses.
- You could bundle your renters insurance with other policies to earn a bundling discount.
Learn more: State Farm Insurance review
USAA
Best for: Military-focused coverage
USAA is the highest-scoring provider in the J.D. Power customer satisfaction study on renters coverage but does not qualify for official ranking due to its eligibility requirements. USAA solely offers its long list of insurance and banking products to active-duty military, veterans and their qualifying family members. USAA renters insurance includes earthquake and flood coverage, which is rare without an added premium. You can also purchase replacement cost coverage on your belongings to further build out your policy. If you live on base, in military dorms or in barracks, you can save up to 28 percent on the cost of renters insurance with USAA.
Standout features:
- A standard renters insurance policy through USAA includes flood coverage and earthquake coverage.
- Your personal property is covered through overseas coverage if you are deployed or move abroad.
Learn more: USAA Insurance review
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Average price of New Jersey renters insurance
According to the Insurance Information Institute, the average renters insurance quote in New Jersey is $151 annually, which is lower than the national average. As of 2021, the average cost of renters insurance nationwide is $170 per year.
Renters insurance is far cheaper than the average cost of homeowners insurance in the U.S. However, this is to be expected, since homeowners insurance covers the entire building plus contents, whereas renters insurance generally only covers contents.
New Jersey ranks 15th among U.S. states in terms of the percentage of its renters spending 30 percent or more of their income on rent and utilities. New Jersey also has a higher percentage of renters overall compared to other states in the U.S.
Renters insurance coverage options in New Jersey
Similar to homeowners insurance, renters insurance includes three key types of standard coverage plus add-ons, which vary by company. Unlike homeowner’s insurance, renters insurance does not cover the structure or dwelling. Renters insurance offers financial protection for your person and your belongings.
Standard coverage typically includes personal liability coverage. This includes bodily injury or property damage those visiting the property may experience. Personal property coverage insures your belongings for damage due to covered events. Additional living expenses coverage might also be included. This provides coverage if you have to move out of your dwelling temporarily due to a covered event.
Add-ons may be available to personalize your renters insurance policy. Examples of add-ons might be identity theft coverage, which provides reimbursement for expenses associated with a stolen identity. Another option to consider is high-value items coverage, which provides added financial protection for valuables such as jewelry, art or antiques.
Frequently asked questions
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