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.
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.
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.
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
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
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
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
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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:
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
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.