Best Homeowners Insurance in New Jersey
New Jersey residents pay an average $947 a year for homeowners insurance. Of the six biggest home insurance providers operating in New Jersey, NJM has the lowest average annual rate, $702.
Even though New Jersey's average cost of home insurance comes in well below the national average of $1,754 a year, comparing quotes and policy offerings can still help you get the best policy at the best price. The age of your home, where it's located and extreme weather in your area can all increase your final rate. To find your cheapest rate, we compared the biggest home insurance companies in New Jersey.
We will cover:
Cheapest home insurance companies in New Jersey
NJM has the cheapest home insurance rate in New Jersey, at $702 a year. That's 26% lower than the state average of $947 a year. Allstate comes in second, at $775.
| Company | Average annual premium |
|---|---|
| Allstate | $775 |
| Cumberland Insurance | $919 |
| Chubb | $1,127 |
| NJM | $702 |
| State Farm | $944 |
| USAA | $1,211 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
How much is homeowners insurance in New Jersey?
The average cost of home insurance in New Jersey is $947 a year. That's 46% lower than the national average rate of $1,754. Factors that may affect your home insurance rate include:
- Your coverage limits
- Your home's age
- Construction materials used
- Location of your home
One factor that affects your home insurance premium and that you can control is the deductible you choose. You can lower your annual premium by increasing your deductible, which is the amount of money you are responsible for paying toward an insured loss.
| Deductible | Average annual premium |
|---|---|
| $500 | $1,070 |
| $1,000 | $947 |
| $1,500 | $893 |
| $2,000 | $838 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Compare quotes from top home insurance companies
Best home insurance companies in New Jersey
NJM and Allstate are the best home insurance companies in New Jersey, according to our survey of multiple providers operating in the Garden State. Here's why:
NJM: cheapest rates and best local company
On top of offering the lowest average rate for home insurance in New Jersey, at an average $59 a month, West Trenton, N.J.-based NJM is an excellent choice if you want a home insurance provider that's located near you.
NJM consistently gets glowing reviews and holds a reputation for excellent claims satisfaction with its policyholders. It has a Complaint Index of 0.25 from the National Association of Insurance Commissioners (NAIC). The index measures customer complaints a company receives in relation to its size. Given that the National Complaint Index is 1.0, this shows NJM's strong capability in processing claims and payouts.
The table below shows NJM's average home insurance rates in New Jersey's five biggest cities.
| City | Average annual premium |
|---|---|
| Newark | $843 |
| Jersey City | $970 |
| Paterson | $978 |
| Elizabeth | $339 |
| Lakewood | $734 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Allstate: best national insurance company
If you're looking for a national home insurance company with widespread availability, then Allstate is our top choice. With Allstate, you'll likely be able to find a local agent in your area. The company also offers many optional coverages, including water backup, identity theft and valuables like engagement rings and antiques. Allstate also has an above-average customer satisfaction score of 829 out of 1,000 in the J.D. Power 2021 U.S. Home Insurance Study.
Although Allstate has an affordable average rate of $775 a year in New Jersey, you can lower your premium even further with the array of discounts it offers:
- If you have auto insurance with Allstate, you can save up to 25% when you bundle home and auto policies.
- If you're a recent homeowner or have a newly constructed home, you may be eligible for a discount.
- If you switch your home insurance policy to Allstate with no claims in your history, it could be worth a 20% discount off your premium. You can also save up to 10% on your premium just for switching to Allstate.
- If you set up automatic payments, you can save up to 5%.
USAA: best for military
While USAA has the highest home insurance rate in New Jersey, $1,211 a year, it's still a solid home insurance option for military personnel. USAA only provides insurance to current and retired military and their families.
USAA consistently holds a top rating for customer satisfaction. In the J.D. Power 2022 U.S. Property Claims Satisfaction Study, USAA received 893 out of 1,000 points, the highest rating of the insurance providers J.D. Power considered nationwide. Furthermore, USAA has a NAIC Complaint Index of 0.46.
USAA includes all the standard coverages you would expect to see in a home insurance policy. Beyond those coverages, USAA covers military uniforms in the event of a loss. USAA also covers the full replacement cost of your home and belongings with no depreciation.
Home insurance rates in New Jersey's largest cities
The most expensive home insurance rate is found in Toms River, which is located along the Jersey Shore. The average rate in Toms River is $1,246 a year. Newark's average rate is $1,089 a year, which is right above the state average. Here are how home insurance rates compare among some of New Jersey's largest cities.
| City | Average annual premium |
|---|---|
| Newark | $1,089 |
| Jersey City | $1,061 |
| Paterson | $1,113 |
| Elizabeth | $822 |
| Lakewood | $972 |
| Edison | $794 |
| Woodbridge | $805 |
| Toms River | $1,246 |
| Clifton | $855 |
| Trenton | $993 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Home insurance rates in New Jersey's largest counties
Among the most populated counties in New Jersey, Ocean County has the most expensive average home insurance rate, $1,284 a year. Morris County has the least expensive rate, $739 a year, which is $208 less than the state average. Here are how rates compare among some of New Jersey's largest counties.
| County | Average annual premium |
|---|---|
| Bergen | $818 |
| Middlesex | $818 |
| Essex | $931 |
| Hudson | $970 |
| Monmouth | $1,113 |
| Ocean | $1,284 |
| Union | $790 |
| Camden | $985 |
| Passaic | $921 |
| Morris | $739 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Flood insurance in New Jersey
Many parts of New Jersey are also susceptible to flooding. You may be required to purchase flood insurance if you have a mortgage and live in a high-risk flood zone. Floods are not covered in a standard homeowners insurance policy. You'll need to purchase a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private company. The average cost of NFIP flood insurance in New Jersey is $963 a year. Private flood insurance rates vary by carrier.
Methodology
We aggregated thousands of quotes from every ZIP code in New Jersey. We used the following policy specifications:
- Dwelling coverage: $275,000
- Personal property coverage: 50% of dwelling ($137,500)
- Other structures coverage: 10% of dwelling ($27,500)
- Loss of use coverage: 20% of dwelling ($55,000)
- Liability coverage: $100,000
- Deductible: $1,000, unless otherwise noted
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