Best homeowners insurance companies in New Jersey for 2024

Compare the best homeowners insurance companies in New Jersey

Residents of the Garden State will find that New Jersey's average home insurance rate stands favorably below the national average of $2,304 for $300,000 in dwelling coverage. In fact, the typical rate for homeowners insurance in New Jersey hovers around $1,162 annually, which translates to approximately $97 monthly. However, it's essential to recognize that the cost is just one piece of the puzzle in identifying the ideal insurance for your residence.

To pinpoint the best homeowners insurance in NJ, we considered third-party ratings such as the J.D. Power 2024 U.S. Home Insurance Study, premium data from Quadrant Information Services, coverage availability, discount opportunities and more. Our analysis revealed that USAA, NJM, Allstate, State Farm and Travelers are among the top providers in the state.

The top 5 home insurance companies in New Jersey

Additional New Jersey home insurance companies to consider

Beyond the most popular picks, there are several other carriers that offer home insurance quotes in New Jersey that might resonate with specific homeowner needs and preferences. Whether you prioritize customer service, tailored policies or unique offerings, these options may warrant a closer look.

Progressive

The Hanover

How Bankrate chose the best home insurance companies in New Jersey

Bankrate took a data-based approach to finding the best homeowners insurance in NJ. 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 opportunities.

Based on performance in these categories, New Jersey homeowners insurance companies earned a Bankrate Score, with a maximum score of five points. Using our Bankrate Score can help compare home insurance carriers and determine which might be best for you.

Cheapest home insurance companies in New Jersey

While coverage needs and individual circumstances play a role in pricing, some companies consistently stand out for offering competitive rates. Below, we've compiled a table highlighting cheap home insurance companies in New Jersey that are typically recognized for their budget-friendly home insurance packages.

How to get cheap New Jersey home insurance

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:

• Shop around: You don’t have to settle for the first quote you get. Experts suggest getting quotes from multiple insurers so you can compare prices. Each insurer has its own way of calculating premiums, so you might find big differences in rates. Then, you can choose the cheapest option.
• Improve your credit: In many states like New Jersey, insurers look at your credit-based insurance score to set your rate. Studies have found that people with lower credit scores tend to make more claims. So, if your insurer considers your credit-based insurance score, having poor credit could mean higher premiums for you.
• Maintain or replace your roof: Roof damage often leads to expensive insurance claims. That's why insurers usually ask about the age of your roof when you ask for a quote. A newer roof might get you a lower rate because it's less likely to get damaged in storms or high winds.
• Bundle your policies: Most insurers offer discounts if you buy more than one policy from them. The most common way to do this is by getting both your home and car insurance from the same company. By bundling, you could save up to 20 percent or even more.

Best home insurance discounts in New Jersey

In New Jersey, homeowners typically have access to a variety of insurance discounts that can significantly reduce their premiums. By understanding and taking advantage of these common discounts, residents might be able to save a considerable amount on their home insurance policies.

How to save on home insurance policy renewals in New Jersey

Yearly policy renewals offer an ideal time for New Jersey homeowners to reassess their coverage needs and seek out potential savings. Whether you're a new homeowner or have been residing in your home for years, there are always ways to potentially lower your premiums.

• Comparison shop: While loyalty to a single insurer might have its benefits, it can be a good idea to shop around and get quotes from multiple providers. Rates may vary, and another company could offer a better deal.
• Bundle your policies: Many insurance companies typically offer discounts when you bundle home insurance with other policies like auto or life insurance.
• Increase your deductible: If you can afford a higher out-of-pocket cost in the event of a claim, you might consider raising your deductible. A higher deductible usually means a lower premium. However, keep in mind that you should be able to comfortably afford paying the higher deductible out of pocket.
• Ask about discounts: Whether it’s for having a newer home, security systems or being claims-free, it might pay to ask your insurer about discounts you qualify for.
• Maintain your home: Regular maintenance and repairs can decrease the likelihood of damage, and some insurers might reward that with reduced rates.
• Review your policy: Ensure you’re not over-insuring or under-insuring. Adjust your coverage to reflect the current value of your possessions and your home.

How much is home insurance in New Jersey?

The average premium cost for a homeowners insurance policy in New Jersey is $1,162 for $300,000 in dwelling coverage per year. This is significantly lower than the national average of $2,304, 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 $1,745 per year for $300,000 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 $1,233  annually for the same coverage.

New Jersey homeowners insurance rates by city

Insurance rates can significantly vary even within state boundaries, influenced by city-specific conditions. Whether it's due to crime rates, proximity to hazardous zones or local building costs, every city in New Jersey might present a different premium. Below, we provide a map and a searchable data table to help you understand these city-by-city variations, giving you a clearer picture of potential rates in your ZIP code or another city in the Garden State you might be considering.

*Rates are for $300,000 in dwelling coverage.

What does home insurance cover in New Jersey?

In the dynamic climate of New Jersey, homeowners often find themselves facing a spectrum of risks, from Atlantic storms to winter freeze. Standard home insurance typically provides a safety net against a range of perils. Yet, given the state's unique challenges, it's essential for residents to understand what their policy covers. By doing so, they can identify potential gaps and consider additional coverage tailored to New Jersey's distinct conditions. Some commonly covered perils include:

• Storm and wind damage: Given its Atlantic coastline, properties in New Jersey may be exposed to storm surges and strong winds.
• Fire and smoke damage: In densely populated areas, fires can spread quickly.
• Theft and vandalism: Property crime might be more prevalent in urban areas.
• Liability: Liability coverage applies to situations where someone is injured on your property or you cause damage to another's property.
• Water damage from internal sources: While flooding from external sources like storm surges might not be covered under a standard policy, damage from issues like burst pipes typically are.
• Weight of ice, snow or sleet damage: Given the state's cold winters, roofs and structures might suffer damage from the accumulation of snow or ice.

Additional home insurance coverage types 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 damage to homes in the state, either from water damage 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 a separate policy to be covered. Here are common New Jersey endorsements or policy types for you to consider:

• Flooding: Of all the coastal states, New Jersey has the highest number of affordable housing units that are exposed to sea-level rise and flooding, according to a 2020 scientific study. 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 covered by a standard homeowner’s policy, so it may be worth considering even if it’s not required. Note that if you’re purchasing a home in a federally designated flood zone, your mortgage lender may require you to purchase flood insurance.
• 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, the cost of fraud claims hit $10 billion dollars in 2023, up 14 percent from 2022. With financial crime through identity theft on the rise, some homeowners may want to add identity theft coverage to their homeowners insurance policy.

Common New Jersey home insurance problems

Securing reliable home insurance in New Jersey isn't always a straightforward process. The state presents unique challenges for both homeowners and insurers. Navigating these issues can often feel overwhelming, but understanding them is the first step toward finding the right coverage. These are some of the common challenges faced by homeowners in New Jersey:

• Aging infrastructure: Many New Jersey homes, particularly in historic districts, are older and may be viewed as higher risk due to outdated electrical, plumbing and heating systems.
• Urban density: In densely populated areas, issues like fire can spread quickly, increasing risks and subsequently, insurance premiums.
• High property values: In certain upscale neighborhoods and coveted locations, the sheer value of homes can drive up the cost of coverage.
• Frequent weather-related claims: From winter storms to coastal weather events, New Jersey sees a range of meteorological challenges that can lead to increased claims, making some insurers hesitant to offer competitive rates.

Frequently asked questions

Additional profiles:

• Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $15,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

Bankrate Scores

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.