Compare Homeowners Insurance In New Jersey
New Jersey is the fourth smallest state, the third state to ratify the Constitution, and the second wealthiest state. It's also the state with the highest population density in the union. Many American staples started here, including FM radio, Frank Sinatra, the light bulb, Bruce Springsteen, and Jon Bon Jovi. But, its proximity to the Atlantic Ocean makes The Garden State home to some important home insurance risks as well.
Average New Jersey Homeowners Insurance Rates
How much is home insurance in New Jersey? New Jersey is just about in the middle when it comes to homeowners insurance premiums. The average cost of home insurance in the state of New Jersey is $1,149. This was just a bit better than the national average of $1,173. There are 20 states with higher average homeowners insurance rates than New Jersey.
| 2013 | 2014 | 2015 | |
|---|---|---|---|
| New Jersey Annual Average | $1,058 | $1,092 | $1,149 |
| New Jersey Price Per Month | $88 | $91 | $95 |
| US Annual Average | $1,096 | $1,132 | $1,173 |
| US Cost Per Month | $91 | $94 | $97 |
| National Rank | 21 | 21 | 21 |
| Source: Facts + Statistics: Homeowners and renters insurance | |||
The graph below shows the change in average New Jersey home insurance rates from 2011 to 2015, the most recent year the data is available. According to the III, New Jersey homeowners insurance rates increased from $915 in 2011 to $1,149 in 2015, a jump of $234 dollars, or 25.57 percent.
Choosing a homeowners insurance company in New Jersey should be easier. Actually, it’s already easy. The key to the best rates is to compare homeowners insurance quotes in New Jersey from multiple companies.
Best Home Insurance Companies in New Jersey
Most Popular Insurance Companies
These were the most common home insurance companies reported by QuoteWizard users in New Jersey last year. Out of the 17,674 New Jersey homeowners that used QuoteWizard to request insurance quotes last year, 657 had no home insurance.
- Allstate
- Geico
- Liberty Mutual
- Progressive
- Farmers
- AAA
- USAA
- 21st Century
- Travelers
- MetLife
Best Homeowners Insurance Companies
The above list shows New Jersey’s most popular home insurers according to our users. But popular doesn’t always mean best.
Our study on the Best Homeowners Insurance Companies focuses on top of the line companies. In no particular order, these companies stand out among the rest:
- Amica: Best Overall
- MetLife: Best for Bundling
- Allstate: Best for Local Agents
- Hartford: Best for Seniors
- State Farm: Best for Pet Owners
- Travelers: Best for Flexible Policies
- Nationwide: Best Replacement Coverage
- Farmers: Best for Eco-Friendly Homes
- Liberty Mutual: Best for Quick and Easy Quotes
- Auto Owners Insurance: Best Claims Experience
New Jersey Home Insurance Company Market Share
| Rank | Company | Financial Strength | Market Share |
|---|---|---|---|
| 1 | Liberty Mutual | A | 9.1% |
| 2 | Allstate | A+ | 9.0% |
| 3 | NJ Manufacturers Insurance | A++ | 8.2% |
| 4 | Chubb | A++ | 7.0% |
| 5 | Plymouth Rock | A- | 5.4% |
| 6 | Travelers Companies | A+ | 5.3% |
| 7 | American Family Mutual | A | 3.8% |
| 8 | USAA Insurance | A++ | 3.8% |
| 9 | Franklin Mutual Insurance | A+ | 3.2% |
Home Insurance Rate Factors
Many different factors come into play when insurance companies calculate the cost of homeowners insurance. Some, like the age of your home, are within your control. Others, like crime rates or natural disasters, are beyond your control. Here are some of the factors that affect the cost of homeowners insurance in New Jersey.
Average Home Listing Prices
Home prices can greatly affect the cost of insurance in any given state. A higher average home price generally means higher premiums in that state. For New Jersey, the average listing price is $362,222 as of July 2015, moderately higher than the national average of $284,748.
Average Burglary Rates
Burglary is a serious and sometimes violent property crime. States with higher average burglary rates generally have higher average home insurance premiums. That's because of the likelihood that someone will need to file a claim is higher. In 2013, New Jersey’s average burglary rate was 403.1 per 100,000 people, which is much lower than the national average of 610.0 per 100,000.
States with more law enforcement per capita tend to be safer than states with fewer policemen and women. In New Jersey, there are 53.5 law enforcement personnel per 100,000 total citizens, almost twice the national median of 32 per 100,000.
Home Insurance Hazards
As is typical of the Mid-Atlantic region, New Jersey’s weather is relatively benign most of the time. However, hot and humid summers and cold winters can bring major homeowners insurance hazards.
Hot, humid summers: Summers in New Jersey are long, hot, and humid. Average temperatures are close to 80 degrees as early as May and as late as September. July is typically the hottest month of the year. Average high temperatures are 85 in Trenton and 81 degrees in Atlantic City. Humidity levels are especially high in the summer, but are relatively high all year. And this leads to snowy winters and year-round rain. Humidity peaks later in the summer, between August and October. For example, in September, average humidity is 87%. High humidity can cause discomfort and it can sometimes be a serious homeowners insurance hazard. humidity is essentially moisture in the air. If this moisture gets trapped inside, it can form mold or mildew. And, some methods of insulation prevent the movement of moisture, which also leads to the development of mold and mildew.
Cold winters: In New Jersey, winters are cold and a bit snowy. Average annual snowfall varies greatly in different parts of the state. In Newark, they average about 15 days of snow per year, and about 29 inches of snow annually. However, in Atlantic City, they only average about 9 days of snow per year, and about 17 inches annually. And, January is the snowiest month, contributing almost half the total snow days for the whole year. January is also the coldest month of the year. High temperatures are about 40 degrees, and low temperatures are below freezing, about 20 degrees in most places. This can begin as early as November and can stick around as late as March. The cold can be a home insurance risk. That's because pipes can crack or leak when cold temperatures force objects to contract. People often turn up the heater, which can create condensation that can later form mold or mildew.
Year-round rain: Rainfall is largely consistent throughout the year in New Jersey, though July is the wettest month. The average rainfall is about 47 inches, higher than most states, but not extreme. Most cities in Jersey experience over 100 days of rain per year, on average. To the north, New Brunswick averages 122 days and about 49 inches of rain per year. But, southern and coastal regions experience much less rain. For example, at Brant Beach, they average only 109 days and under 40 inches of rain annually. Occasionally, New Jersey gets a Nor’easter storm, which are typical of the New England region. Similar to hurricanes, these storms bring heavy rains, extreme winds, blizzards in winter, and flooding in spring. In 2012, Hurricane Sandy hit New Jersey directly, with winds over 90 mph. Sandy hit near Atlantic City, causing flooding, knocking down power lines, and ripping apart the famous boardwalk. The storm left millions without power for days, thousands of flights were cancelled, and many coastal residents were evacuated. Hurricane Sandy cost the US tens of billions of dollars in damage and left thousands homeless. It also claimed over a hundred lives. It’s important to note that the only way to obtain flood insurance is through the National Flood Insurance Program. Learn more about the NFIP here.
New Jersey Office of the Insurance Commissioner
- Website:
- Homepage
- Insurance Commissioner:
- Marlene Caride
- Insurance Hotline:
- (800) 446– 7467
- Office Hours:
- Monday - Friday
8:30 am to 5:00 pm
- File a Consumer Insurance Complaint
- Complaint Page
Sources:
- A.M. Best Insurance Carrier Ratings
- Insurance Information Institute – Home Insurance Market Share in New Jersey
- NAIC--Home Insurance Market Share in New Jersey
- Average Home Insurance Rates in New Jersey
- Average Home Listing Price in New Jersey
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