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 like medical payments, loss of use and personal liability. Because of these differences, it’s important to shop around for the coverage that suits you.
Renters insurance covers damage to you or your personal belongings. Bankrate’s insurance editorial team has found some of the best renters insurance companies for New Jersey renters, which include American Family, Lemonade, Nationwide, State Farm and USAA. Each of these renters insurance companies has coverage limits that you can select for your needs, plus discounts to keep the cost of renters insurance low.
Best renters insurance companies in New Jersey
When selecting the best insurance providers for renters in New Jersey, we compared pricing, customer satisfaction scores and financial ratings. 2021 J.D. Power study ratings for renters insurance customer satisfaction and AM Best financial strength ratings, which help indicate a company’s ability to pay claims, were also considered. These companies are some of the top companies offering a renters insurance policy for New Jersey residents.
| Insurance company | J.D. Power score | AM Best score |
|---|---|---|
| American Family | 838/1,000 | A (Excellent) |
| Lemonade | 870/1,000 | Not scored |
| Nationwide | 834/1,000 | A+ (Superior) |
| State Farm | 866/1,000 | A++ (Superior) |
| USAA* | 893/1,000 | A++ (Superior) |
*Not officially ranked with J.D. Power due to eligibility restrictions
American Family
American Family Insurance offers a wide range of traditional insurance products, including renters policies. New Jersey renters could save up to 15% by bundling renters insurance with auto insurance. Choosing autopay and using smart home devices in your rental could get you even more discounts with American Family. Before deciding on a policy, it may be worth noting that American Family scored below industry average for renters insurance customer satisfaction.
Learn more: American Family Insurance review
Lemonade
Lemonade is newer in the renters insurance industry and it’s one of the cheapest. While its newer status means it doesn’t have AM Best scoring available yet, the company advertises rates starting as low as $5 per month and received the highest customer satisfaction rating in the 2921 J.D. Power 2021 Home Insurance Study. Lemonade features 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.
Learn more: Lemonade Insurance review
State Farm
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 online, but New Jersey has a plethora of local agents if you prefer to handle your insurance in person. If you combine your auto insurance with State Farm renters insurance, you could save on both policies.
Learn more: State Farm Insurance review
USAA
If USAA were to meet J.D. Power study award criteria, this renters insurance company would be top-ranked for renters insurance. USAA works with former and current military members and their immediate families to offer a long list of banking and insurance products. USAA renters insurance includes earthquake and flood coverage, which is rare for a renters insurance company. 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% on the cost of renters insurance with USAA.
Learn more: USAA Insurance review
Nationwide
At Nationwide, you can personalize your renters insurance with options to include coverage for water damage, earthquake and theft extension to items stored in your car or watercraft. Nationwide offers Brand New Belongings coverage, which initially pays you the depreciated value for claimed items, but will reimburse the difference once you buy replacement items. Nationwide also offers coverage for building additions and alterations, which can provide coverage for improvements or alterations you make to your rental property. Policyholders rank Nationwide below average in customer satisfaction for renters insurance, which may indicate some challenges with service or coverage.
Learn more: Nationwide Insurance review
Average price of New Jersey renters insurance
As of 2018, the average cost for renters insurance is $179 per year. This is far cheaper than the average cost of homeowners insurance nationally, which is $1,312 per year for $250K in dwelling coverage. That is to be expected, since homeowners insurance covers the entire building plus contents, whereas renters insurance generally only covers contents. According to the Insurance Information Institute (Tripe-I), the average renters insurance quote in New Jersey is $160, which is also lower than the national average.
New Jersey ranks ninth among U.S. 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 U.S.
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 incidents at your home that you are deemed responsible for.
- Personal property: This coverage insures your belongings in the case of damage. It could even cover the belongings of your guests in the event their things are damaged while visiting.
- Additional living expenses (ALE): This provides coverage if your home is destroyed by a covered peril and you need to live elsewhere temporarily.
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 getting an online quote and buying renters insurance. After you get quotes and decide which renters insurance 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.
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