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 2023 J.D. Power 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. The following companies 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 | 835/1,000 | A+ (Superior) |
| Lemonade | Digital experience | 854/1,000 | Not scored |
| Liberty Mutual | Discounts | 848/1,000 | A (Excellent) |
| State Farm | Flexible customer service choices | 844/1,000 | A++ (Superior) |
| USAA* | Military-focused coverage | 894/1,000 | 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 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.
Perks
- Highly-rated mobile app
- Customer service is available 24/7
Drawbacks
- Not all endorsements are available in every state
- Few policy add-ons available
Standout features:
- Discount for bundling with your auto policy.
- Renters insurance starts as low as $4 per month.
Learn more: Allstate Insurance review
Lemonade
Best for: Digital experience
Lemonade is newer in the renters insurance industry and 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 2023 J.D. Power U.S. Home Insurance Study. Lemonade features an easy-to-use app, through which you can purchase renters insurance in 90 seconds, according to the company. 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 a portion of its profits to charities and causes of your choice through its Giveback program.
Perks
- Quick quote and purchase process
- Fast claim filing and processing
Drawbacks
- No in-person customer service
- Not as many third-party ratings compared to more established insurance companies
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 charities. Lemonade has given back over $8 million through this program.
Learn more: Lemonade Insurance review
Liberty Mutual
Best for: Discounts
Liberty Mutual offers a wide range of insurance products, including renters policies, as well as several discount opportunities. Customers can choose between ACV and RCV policies and added coverage options for personal belongings. While Liberty Mutual did not score as well for customer satisfaction on the J.D. Power survey for homeowners insurance, it did score above the industry average for renters insurance. The company offers standard renters insurance coverage options and several endorsements. 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.
Perks
- Ranks well for overall customer satisfaction for renters insurance, per J.D. Power
- Several policy endorsements are available
Drawbacks
- Renters policies may default to ACV unless the policyholder specifically requests RCV
- Endorsement and discount availability varies between states
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 options
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.
Perks
- Customer service available through agents, local reps, online or the mobile app
- Easy online quote and purchase process
Drawbacks
- Limited number of discounts available
- Scored behind five other companies in the 2023 J.D Power Home Insurance Study
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 but does not qualify for official ranking due to its eligibility requirements. 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 percent on the cost of renters insurance with USAA.
Perks
- Highly-rated customer service
- Discounts and add-on features available
Drawbacks
- Only available to those who meet membership qualifications
- Limited number of physical locations
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 (Triple-I), the average renters insurance quote in New Jersey is $154 annually, which is lower than the national average. As of 2020, the average cost of renters insurance nationwide is $173 per year.
Renters insurance is far cheaper than the average cost of homeowners insurance in the U.S. That is to be expected, since homeowners insurance covers the entire building plus contents, whereas renters insurance generally only covers contents.
New Jersey ranks eighth among U.S. states in terms of the percentage of its renters spending 30 percent or more of their income on rent and utilities. However, 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 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 coverage. This includes bodily injury or property damage to anyone visiting the property you are responsible for. Personal property coverage insures your belongings if there is damage due to covered events. This coverage typically extends to guests visiting your home too. Additional living expenses are another important component of a renters insurance policy, which provides coverage if you have to move out of your dwelling temporarily due to a covered event.
Add-ons are another way to personalize your renters insurance policy even further and provide added coverage for a reasonable cost. Examples of add-ons might be identity theft coverage, which provides reimbursement for any expenses associated with a stolen identity. Another option to consider is high-value items coverage, which provides added protection for valuables such as jewelry, art or antiques.
Frequently asked questions
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Renters insurance in New Jersey can be highly personalized in policy details and rates. Therefore, the best renters insurance for your neighbor may not be the best for you. Still, some strategies exist for finding the best insurer for your needs. To start, it can help to make a list of your insurance needs. Include things like how much total coverage you need and whether you need storage items to be covered. After that, it’s often a good idea to request quotes from several insurers and to consider speaking with a licensed agent.
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Most renters insurance carriers 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 of purchasing coverage. You’ll likely need to provide a bit of personal information, as well as your address, and make a payment to activate the policy.
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Renters insurance is not required by law. However, check with your landlord or leasing office because many include a renters insurance requirement with leasing agreements.
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Creating a detailed list of all your belongings and an estimate of their value is the best way to determine how much renters coverage you require. More affordable New Jersey renters insurance plans may start with between $15,000 to $20,000 in personal property coverage, but policies with significantly higher limits can be found. Experts generally recommend maintaining enough personal property coverage to fully replace all your belongings if the worst were to occur.
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