Best homeowners insurance in New Jersey for 2022

We looked at policy cost, coverage quality, and unique policy offerings for New Jersey residents to find the best homeowners insurance companies in New Jersey.

Laura Gunn

By

Laura Gunn

Laura Gunn

Freelance contributor

Laura Gunn is an insurance expert and writer. As a former English teacher, she made the transition to full-time writing and editing in 2016. Since that time she has written extensively about insurance topics, as well as topics pertaining to education and marketing.

Her work has been published in The Millennial Source, News Hunt 360, Realty Today, HNGN, and other publications.

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Michael Reynolds, CSRIC®, AIF®, CFT-I™

Michael Reynolds, CSRIC®, AIF®, CFT-I™

Financial Advisor

Michael Reynolds, CSRIC®, AIF®, CFT-I™, is a financial advisor, principal and founder of Elevation Financial, host of the weekly personal finance podcast Wealth Redefined®, and a member of the Financial Review Council at Policygenius.

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New Jersey's coastal location means it's susceptible to severe weather activity, including tropical storms. These disasters can and do lead to catastrophic wind and flood damage, which means potential damage to New Jersey homes. 

But even with the threat of these damaging storms, the average cost of homeowners insurance in New Jersey is only $926 per year or $77 a month. That's over 50% lower than the national average of $1,899 per year.

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But there are other factors you should consider when choosing an insurer. Not sure what to look for? Policygenius can help you figure out your coverage needs and compare quotes from multiple top companies in New Jersey.  

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UPDATE: Home insurance premiums up 10% in New Jersey

Home insurance premiums in New Jersey increased 10% from May 2021 to May 2022, according to our latest analysis of internal policyholder data. This is due to a mix of rising inflation, labor shortages, and severe natural disasters that have caused insurance companies to increase rates and establish stricter underwriting rules to offset the risks.

You can find all of the details in our Policygenius Home Insurance Pricing Report.

Best homeowners insurance companies in New Jersey

Of the companies we looked at, NJM’s average premium of $777 per year is the lowest in New Jersey, and almost $200 cheaper than the state average. 

But cost isn't the only factor to consider when shopping for home insurance. It's also important to consider and understand how a company performs with their current customers through third-party entities like J.D. Power ratings.  

Policygenius analyzed thousands of quotes from the 5 largest New Jersey insurers to find the average cost of homeowners insurance with each company in 2022. We then looked at 2021 J.D. Power customer satisfaction scores and compared that with the coverage needs of New Jersey residents to find the best homeowners insurance in New Jersey.

Company

Average yearly cost

J.D. Power Rating

NJM

$777

--

State Farm

$991

835

Chubb

$1,150

801

Plymouth Rock

$1,202

--

USAA

$1,177

882

NJM Insurance

NJM Insurance logo

NJM offers customizable home insurance coverage at an affordable rate, including policy add-ons for increased protection for your computers, firearms, credit cards, and more.

Pros

  • Coverage add-ons include mold protection, HOA insurance, earthquake coverage, and assisted living care protection

  • Increased personal property coverage limits available

  • Save with discounts for nonsmokers, owning a backup generator, installing storm shutters, and more

  • Excellent customer satisfaction ratings

  • Receives fewer customer complaints than the industry average

  • File claims online — with 24/7 claims support

Cons

  • Doesn't offer extended replacement cost coverage for your home or belongings

Why NJM tops our best list

NJM tops our best list because of their customizable home insurance policy options and affordable rates. It offers great coverage add-ons, like mold protection, to better protect your home from expensive water and mold damage. NJM also offers increased personal property coverage limits to make sure your valuables are fully covered. 

How to get a quote

Online through NJM

State Farm

State Farm logo

There's a reason State Farm is one of the top-rated insurance companies in the U.S. — its customer satisfaction ratings are through the roof, it offers a slew of coverage add-ons for full protection, and makes filing claims through its mobile app a breeze.

Pros

  • Top-tier coverage add-ons, including equipment breakdown, water backup, and service line coverage

  • Get up to $1 million in personal liability coverage

  • Score discounts for bundling, installing security devices, and choosing a high deductible

  • File and track claims online, over the phone, in person, or through its mobile app

  • High customer satisfaction and financial strength ratings

Cons

  • No discounts for first-time homebuyers or going a year without a claim

Why State Farm tops our best list

We love reliability, and that's what homeowners get with State Farm. It is one of the most recognized home insurance providers in the nation, and it has the high customer satisfaction ratings to back it up. 

How to get a quote

 Online through State Farm

Chubb

Chubb logo

Chubb is a top-tier insurer ideal for high-value homes that need more robust coverage that goes beyond the run-of-the-mill options offered by traditional insurance companies.

Pros

  • Base policies include extended replacement cost coverage for your home and replacement cost coverage for your personal property — two perks that cost extra with most other companies

  • Helps you find temporary living arrangements if your home can't be lived in after a covered loss

  • No deductible on losses greater than $50,000

  • Cash-out claim settlement option means you can still get paid even if you decide not to repair your home after a covered loss

Cons

  • Rates are among highest in the industry

  • Will only insure high-value homes

Why Chubb tops our best list

Chubb provides homeowners insurance for property owners who need more, offering robust coverage options that go well beyond what’s provided by other insurers. With Chubb, homeowners insurance policies include extended replacement cost coverage and replacement cost coverage for your personal property — at no additional charge. Both are great options to have when the New Jersey storms roll in.

How to get a quote

Online through Policygenius or Chubb

Plymouth Rock

Plymouth Rock logo

Plymouth Rock offers comprehensive dwelling coverage option like guaranteed replacement cost, affordable rates, and simplified claims and policy management thanks to a convenient mobile app.

Pros

  • Rates are lower than the national average

  • Offers guaranteed replacement cost coverage

  • Multiple discount options

Cons

  • No online quotes

Why Plymouth Rock tops our best list

Plymouth Rock may not offer online quotes, but it does offer great coverage options at prices well below the national average. It also has dozens of discount options to help push your premiums down even lower. 

How to get a quote

 Online through Policygenius or Plymouth Rock

USAA

USAA logo

USAA's robust coverages and high marks for customer service and claims satisfaction make it a solid home insurance option for military members and their families.

Pros

  • Score discounts for zero claims, being a loyal USAA member, opting into e-billing, and more

  • Base policy includes coverages that cost extra with most other companies

  • Offers earthquake coverage — which is hard to come by

  • Get discounted home security systems and a discount on premiums through its partnership with ADT

  • Industry-best customer service and claims satisfaction ratings

Cons

  • Only available to military families

  • Doesn’t offer extended or guaranteed replacement cost dwelling coverage

Why USAA tops our best list

USAA continually produces high customer satisfaction, making them a great choice for homeowners. It has great coverage options with tons of available discounts to help keep costs even lower. If you are a service member, or a family member in New Jersey, then USAA might be the right call. 

How to get a quote

Online through USAA

Cheapest homeowners insurance companies by city in New Jersey

Looking at average home insurance costs for the 15 most popular insurers in New Jersey, we found that the cheapest homeowners insurance companies in the state are NJM and Narragansett Bay. On average, the smaller towns in New Jersey have some of the cheaper rates. 

Home insurance costs in New Jersey can and do vary depending on where you live. Cities with a higher population, a track record or hurricanes or flooding, and even areas with older or more expensive homes can have higher than average home insurance rates. Your premiums will usually be higher if you live in an area that is more expensive or at higher risk of potential damages, there are many affordable options to choose from, as shown in the table below.

City

Company

Average yearly cost

Absecon

Narragansett Bay

$652

Adelphia

Narragansett Bay

$563

Allendale

NJM

$572

Allenhurst

Narragansett Bay

$458

Allentown

Narragansett Bay

$558

Allenwood

Narragansett Bay

$609

Alpine

Narragansett Bay

$514

Andover

NJM

$594

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Shopping for homeowners insurance in New Jersey

When shopping for homeowners insurance, you'll want to make sure you’re selecting the correct coverage amounts and a policy that suits your specific homeownership needs. New Jersey residents in particular will want to make sure their dwelling coverage limit is high enough to cover the cost of a full rebuild after a potentially devastating hurricane or tropical storm.

In this section, we break down the average annual home insurance rates in New Jersey for different coverage and deductible levels, as well as the cheapest and most expensive home insurance companies in the state for individuals with a poor credit score, dog owners, and pool owners. Once you’re ready to shop, a Policygenius expert can help you navigate your coverage needs and help you find the best deal on homeowners insurance in New Jersey.

New Jersey home insurance costs by coverage amount

Dwelling coverage is the part of your home insurance that covers the physical structure if it’s damaged or destroyed by a covered loss. Your dwelling coverage limit should be based on the replacement cost of your home — not its market value or purchase price. 

The table below highlights some of the most common dwelling coverage amounts and the corresponding yearly cost. In general, more dwelling coverage means higher homeowners insurance rates.

Dwelling coverage amount

Average yearly cost

$100,000

$425

$200,000

$684

$300,000

$926

$400,000

$1,161

$500,000

$1,426

Liability coverage is the part of your home insurance that pays for medical or legal bills in case you’re responsible for an injury or property damage. Your liability coverage limit should be based on the total value of your assets — everything from your home and vehicles to any liquid assets. 

Liability coverage amount

Average yearly cost

$100,000

$888

$200,000

$875

$300,000

$926

$400,000

$827

$500,000

$967

New Jersey home insurance costs by deductible amount

Your home insurance deductible is the amount you’re responsible for paying each time you file a claim. In general, your home insurance rates decrease as your deductible increases.  

As seen in the table below, New Jersey residents can save around $200 on home insurance by choosing a $2,000 deductible over the $500 option.

Deductible amount

Average yearly cost

$500

$1,050

$1,000

$926

$2,000

$849

Home insurance discounts in New Jersey

A great way to save a few bucks on your yearly premium is to take advantage of available discounts. A lot of insurance providers give homeowners a small discount when they add safety features — like dead bolts, smoke alarms, or burglar alarms. These features help keep you home safer and minimize the potential for insurance claims in the future. 

While you won’t get a huge discount if your house has one of the following features and nothing else, they can add up if you have several protective devices in your home. Here is the average annual rate and average discount percentage for homes in New Jersey with deadbolts, smoke alarms, or burglar alarms. 

Discount

Average yearly cost

Dead bolt

$925

Smoke alarm

$922

Burglar alarm

$881

Wind mitigation discounts in New Jersey

Many home insurance companies in New Jersey offer wind mitigation discounts for installing permanent storm shutters or impact-resistant glass to better help your home withstand high winds and flooding caused by a hurricane or strong windstorm.

→ Learn more about wind mitigation discounts & how to qualify

Home insurance companies in New Jersey for dog owners

New Jersey residents with certain “aggressive” dog breeds may also see higher home insurance rates due to the increased probability of dog bites and liability claims. 

With an average rate of $791 per year, NJM has the cheapest home insurance rates in New Jersey for a home with a dangerous dog breed, while Plymouth Rock’s average yearly premium of $1,202 is the highest.

Company

Average yearly cost

NJM

$791

State Farm

$991

Chubb

$1,150

USAA

$1,177

Plymouth Rock

$1,202

Home insurance companies in New Jersey for poor credit

Your credit score can also impact your home insurance rates. Homeowners with poor credit scores are viewed by insurance providers as higher risk, so they’ll often be charged expensive rates as a result.  

With an average rate of $1,120 per year, NJM has the cheapest home insurance rates in New Jersey for a homeowner with poor credit, while USAA’s average yearly premium of $1,847 is the highest. 

Company

Average yearly cost

NJM

$1,120

Plymouth Rock

$1,202

Chubb

$1,648

State Farm

$1,666

USAA

$1,847

Home insurance companies in New Jersey for pool owners

Pool owners in New Jersey might also see higher home insurance premiums. Backyard pools put homeowners at higher risk of liability claims, so insurance providers offset that risk by charging higher rates.  

With an average rate of $758 per year, NJM has the cheapest home insurance rates for New Jersey homes that have a swimming pool, while Plymouth Rock’s average yearly premium of $1,202 is the most expensive.

Company

Average yearly cost

NJM

$785

State Farm

$991

Chubb

$1,150

USAA

$1,177

Plymouth Rock

$1,202

How to buy homeowners insurance in New Jersey

New Jersey homeowners benefit a lot from living in their great state, but with the threat of hurricanes, bad weather, and flooding, it’s extra important to compare policies from multiple companies to make sure you’re getting the best coverage at the fairest price. 

Here are a few steps to follow as you shop for homeowners insurance in New Jersey: 

  1. Reach out to a licensed Policygenius agent. Our team of licensed home insurance experts are ready to help you figure out how much coverage you need and what company offers it at the best price. Plus, it comes at no charge and with no impact to your credit score.

  2. Consider purchasing flood insurance. Did you know standard home insurance policies don't cover flooding? New Jersey residents are at high risk of flood damage, so you’ll want to purchase flood insurance to make sure you’re fully protected. A Policygenius agent can help you do this, too.

  3. Figure out how low of a deductible you can afford. You’ll want to figure out how much you’ll be able to afford to pay out of pocket every time you file a claim due to hurricane or flood damage.

  4. Compare quotes from a Policygenius agent. Once you’ve nailed down your coverage needs and input details about your home, a Policygenius agent will walk you through quotes from a few different companies to help you find the best policy for your needs.

  5. Sign the policy and pay your first premium. After you’ve chosen the policy you want, your Policygenius agent will complete all of the paperwork for you. The only thing left to do is sign the policy and pay your first premium.  

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Frequently asked questions

What is the average cost of homeowners insurance in New Jersey?

The average cost of homeowners insurance in New Jersey is $77 per month or $926 per year.

How can I lower my homeowners insurance in New Jersey?

One of the best ways to lower your homeowners insurance in New Jersey by taking advantage of discounts offered through your home insurance company. Most major insurance companies offer several discount or bundling options that can help lower your premiums by up to 30%.

Is it mandatory to have homeowners insurance in New Jersey?

New Jersey doesn't have any state laws requiring homeowners to insure their homes. Most mortgage lenders require you to purchase home insurance before they’ll extend a home loan to you though. The mortgage lender has a financial interest in your home until the loan is paid in full, so they'll want to make sure your property is fully protected.

Methodology

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

Author

Freelance contributor

Laura Gunn

Freelance contributor

Laura Gunn is an insurance expert and writer. As a former English teacher, she made the transition to full-time writing and editing in 2016. Since that time she has written extensively about insurance topics, as well as topics pertaining to education and marketing.

Her work has been published in The Millennial Source, News Hunt 360, Realty Today, HNGN, and other publications.

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