Homeowners in New Jersey get the cheapest rates for home insurance with Allstate, followed by NJM and then Chubb. Even though the average cost of homeowners insurance in New Jersey comes in well under the national rate, you still want to get the best policy at the cheapest price. This guide can help you understand your best options.
In this article
The cheapest home insurance companies in New Jersey
Allstate has the cheapest rate for home insurance in New Jersey, with an average rate of $61 a month. NJM is next at $76, then Chubb at $81.
| Company | Monthly rate |
|---|---|
| Allstate | $61 |
| NJM | $76 |
| Chubb | $81 |
| Fidelity | $95 |
| USAA | $113 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
How much does homeowners insurance cost in New Jersey?
Homeowners in New Jersey pay an average of $85 a month for a home insurance policy. This is 47% cheaper than the national average home insurance rate of $159 a month.
Home insurance companies look at many different factors when calculating your quote. These factors include:
- The age of the home
- Your ZIP code
- Construction materials used
- Your claim history
While the coverage in a standard home insurance policy tends to be the same regardless of provider, policy price can differ. The reason for this is because insurance companies put different values on different risks. For example, the neighborhood your house is in may be considered a higher risk by one insurer than another. This is why you should compare quotes from multiple providers to make sure you get the best coverage at your best price.
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Aside from policy factors, the policy deductible you choose also has an effect on your home insurance rate. The higher you set your deductible, the lower your premium. Below is a table showing how different deductibles change your rates.
| Company | $500 | $1,000 | $1,500 | $2,000 |
|---|---|---|---|---|
| Allstate | $71 | $61 | $56 | $54 |
| Chubb | $95 | $81 | $81 | $71 |
| Fidelity | $105 | $95 | $87 | $82 |
| NJM | $91 | $76 | $69 | $65 |
| USAA | $123 | $113 | $101 | $101 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
If you have a newly-constructed home, or if you've recently upgraded systems in it, your risk for a claim is lessened. If this is the case, consider raising your deductible to lower your annual premium. If your home is older, it's more practical to go with a lower deductible.
Your dwelling coverage amount also affects your home insurance quote. You'll want to purchase enough dwelling coverage to rebuild your house after a total loss. The following table shows how rates from different home insurance providers change with dwelling coverage amount increases.
| Dwelling limit | Annual rate | Monthly rate |
|---|---|---|
| $200,000 | $852 | $71 |
| $350,000 | $1,239 | $103 |
| $425,000 | $1,461 | $122 |
| $500,000 | $1,690 | $141 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
The best home insurance companies in New Jersey
We found Allstate, NJM and Chubb to be New Jersey's best homeowners insurance companies. Here's why:
Allstate: Cheapest rates and best discounts
Allstate's average New Jersey homeowners insurance rate is $61 a month. This is 28% less than the New Jersey average rate. One of the reasons for its lower rate is the range of discounts Allstate offers. These include:
- Early signing discount: If you purchase an Allstate home insurance policy at least seven days before the expiration of your current home insurance, you can save up to 10% off your premium.
- Welcome and loyalty discount: As long as you carry your home insurance policy with Allstate, you can get a discount of up to 10%.
- Multi-policy discount: If you bundle your car or life insurance policy with your homeowners insurance, you can get a discount of up to 20%.
- Claim-free discount: No recent claims? You can save up to 20% off of your home insurance costs.
NJM: Best local home insurance
NJM has an average rate of $76 in New Jersey, 11% less than the state average. Based in Trenton, NJ, NJM has over 100 years of experience helping New Jersey residents with their insurance needs.
NJM offers a wider array of discounts, as well as special limits for personal property coverage and broader coverage limits for valuables such as jewelry and art. If you're looking for a strong local provider, NJM is a good choice.
Chubb: Best for luxury homes
Chubb's average home insurance rate in New Jersey is $81 a month. On top of premiums lower than the state average, Chubb is the top choice if you own a high-end home. It offers the Masterpiece Home Insurance plan, tailored for luxury homeowners and including benefits such as:
- Cash payout rather than repair coverage
- Using your own contractor instead off of a list
- Extended replacement coverage to rebuild after a total loss, even if costs exceed your dwelling coverage limit.
New Jersey's cheapest home insurance by city
Looking at the 10 biggest cities in New Jersey, homeowners insurance rates range from Edison at $845 a year, on average, to Toms River at $1,414 a year.
| City | Annual rate |
|---|---|
| Clifton | $847 |
| Edison | $845 |
| Elizabeth | $874 |
| Jersey City | $1,138 |
| Lakewood | $1,034 |
| Newark | $1,061 |
| Paterson | $1,008 |
| Toms River | $1,414 |
| Trenton | $914 |
| Woodbridge | $881 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in Newark
Chubb is the cheapest home insurance company in Newark at $900 a year, followed by Allstate at $923 a year. The average annual rate for home insurance in Newark is $1,061.
| Company | Average annual premium |
|---|---|
| Allstate | $923 |
| Chubb | $900 |
| Fidelity | $1,195 |
| NJM | $984 |
| USAA | $1,301 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in Jersey City
Chubb has the cheapest average rate for homeowners insurance in Jersey City at $899 a year. Allstate is second-cheapest at $923 a year. Jersey City's average annual home insurance rate is $1,137.
| Company | Average annual premium |
|---|---|
| Allstate | $923 |
| Chubb | $899 |
| Fidelity | $1,379 |
| NJM | $1,131 |
| USAA | $1,355 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
Cheapest home insurance in Paterson
Paterson gets the cheapest rate for home insurance with Fidelity, at an average rate of $884 a year. It is followed by Chubb at $903 a year. The average annual rate for home insurance in Paterson is $1,008.
| Company | Average annual premium |
|---|---|
| Allstate | $923 |
| Chubb | $903 |
| Fidelity | $884 |
| NJM | $1,116 |
| USAA | $1,215 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
New Jersey's cheapest home insurance by county
In looking at the biggest counties in New Jersey, Union County has the lowest rate with NJM, at $47 a month. Morris County has the second-cheapest rate of $53 a month with Allstate.
| County | Annual rate |
|---|---|
| Bergen | $828 |
| Camden | $1,032 |
| Essex | $960 |
| Hudson | $1,032 |
| Middlesex | $852 |
| Monmouth | $1,284 |
| Morris | $780 |
| Ocean | $1,464 |
| Passaic | $888 |
| Union | $816 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |
New Jersey home insurance: FAQs
How much is home insurance in New Jersey?
The average homeowners insurance rate in New Jersey is $85 a month, 47% cheaper than the national rate of $159 a month.
What home insurance company has the cheapest rates in New Jersey?
Allstate has the cheapest rate in New Jersey at $61 a month, 28% lower than the New Jersey average.
Methodology
We collected quotes from every ZIP code in New Jersey for a standard HO-3 homeowners insurance policy using the following coverages:
- $275,000 dwelling coverage (unless otherwise noted)
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
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