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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 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.
Most Popular New Jersey Home 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 in New Jersey
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% |
New Jersey Home Insurance Rate Factors
How much you pay for home insurance depends on several factors. Some, like roof maintenance, are within your control. Others, like property crime rates in your area, aren’t up to you. These are the main factors that affect the cost of homeowners insurance in New Jersey.
Your Personal Rate Factors
Your House
Insurance risks differ from home to home, and so does how much you’ll pay for insurance. These are the main factors that influence your homeowners insurance rates:
- Your home’s age. Homeowners with older homes tend to pay more for insurance. That’s because older homes have a higher chance of needing major repairs. 18 percent of NJ homes were built in or before 1939, so many residents are used to the special care older homes require.
- The quality of your roof. Maintaining your roof with region-appropriate material can cut down on your insurance rates. Roof upkeep can be the difference between major and minor damages after a storm. In NJ, for example, protect your roof by keeping rain gutters clear so that severe snow storms don’t cause flooding.
- Your home’s replacement cost. Replacement cost is how much money it takes to rebuild your home from the ground up after a disaster. Your home’s replacement cost ideally matches your dwelling/structure coverage, which is a major factor in your rates. But replacement cost isn't based off your homes market value. Rather, it depends on your house’s style, size, and finish. For example, a home in Newark could technically have a higher replacement cost than a much pricier home in the Princeton area.
Claims History
Homeowners insurance claims stay on your record for five to seven years. Filing additional claims with some already on your record can hike your premiums. Because of this, homeowners should avoid filing any unnecessary claims within the span of a few years.
Pets
Animal lovers know that their pet is a part of the family. Unfortunately, if you own an exotic pet or a specific dog breed, your homeowners insurance rates could take a hit. Even worse, you may have a hard time finding a company to insure you in the first place. According to a study by the American Veterinary Medical Association, NJ has the second lowest number of dog owners in the country.
Credit Score
Insurance companies analyze your credit score when calculating your rates. People with bad credit pay more for homeowners insurance. Overall, NJ residents are okay in this regard– the state has the 22nd best average credit score in the country.
New Jersey Rate Factors
Weather
Areas with a low risk of natural disasters usually have lower insurance rates. Fortunately, NJ is the 34th most natural disaster-prone state in America. The state is prone to blizzards and the occasional hurricane, so it’s important to prepare your home for high snowfall and flooding. Insurance risks vary based on where in the state you are. For example, coastal towns have a higher chance of a hurricane, so consider purchasing flood insurance if you live along the coast in NJ. Keep in mind that homeowners insurance doesn’t cover damages caused by flooding. Buy a separate policy before the storm hits.
Wherever you live in NJ, there’s a chance you’ll encounter one of these natural disasters:
- Blizzards
- Floods
- Thunderstorms
- Earthquakes
- Hurricanes
- Tornadoes
According to the New Jersey Office of Emergency Management, there are several steps you can take to prepare your home for a natural disaster.
- Use metal connectors to attach your roof more securely.
- Use storm shutters over exposed windows.
- Protect pipes from freezing.
- Purchase flood insurance.
- Clear your roof.
Property Crime
A home burglary impacts your safety and your insurance rates. Areas with high property crime rates pay more in homeowners insurance premiums. Fortunately, NJ has the sixth lowest property crime rate in the nation. In 2017, the average property crime rate in your state was 1,555.5 per 100,000 residents.
But property crime rates vary across the state. For example, Newark has an average of 23.82 property crimes annually per 1,000 residents. Hoboken, on the other hand, has an average of 17.65 property crimes annually per 1,000 residents. Your rates will vary depending on the property crime rate in your specific area.
Just like with natural disasters, there are steps you can take to prevent a burglary in your home. These steps include installing alarms, security cameras, deadbolt locks, and more. Taking these steps can make your home safer and earn you an insurance discount.
Types of Home Insurance Policies
Homeowners have several options for insurance policies. In NJ, you can choose from these insurance types:
- HO-1: This policy covers all normal damages and is the most basic policy.
- HO-2: A broad level policy. This policy covers everything in HO-1, plus falling objects and damages to AC units, pipes, and other home systems.
- HO-3: This policy covers all damages (including unattached structures) unless specifically excluded. This is the most popular homeowners policy type.
- HO-5: This is a premium policy and a comprehensive policy like HO-3. HO-5 comes with less property claim limitations and more coverage than HO-3.
- HO-6: This policy is designed for condo owners. It covers possessions and provides liability.
- HO-7: If you own a mobile home, this is your policy. It's like HO-3 for mobile homes.
- HO-8: Older homes can require special attention and protection. This policy is similar to HO-3 but for older homes.
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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