The Best Cheap Home Insurance in New Jersey for 2022

Homeowners in the Garden State are likely to pay home insurance rates that are well below the national average.
Apr 26, 2022

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The average cost of homeowners insurance in New Jersey is $942 per year — well below the national average of $1,784 per year. This is based on a sample homeowner with $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

NerdWallet analyzed data from 16 insurance companies selling policies in New Jersey to help you find the best home insurance in the state, whether you live in Montague, Cape May or anywhere in between. Note that these rates are estimates and depend on many different factors, so yours may vary.

Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our writing and data analyses. You can trust the prices we show you because our data analysts take rigorous measures to eliminate inaccuracies in pricing data, and may update rates for accuracy as new information becomes available.

We include rates from every locale in the country where coverage is offered and data is available. When comparing rates for different coverage amounts and backgrounds, we change only one variable at a time, so you can easily see how each factor affects pricing.

The best cheap homeowners insurance in New Jersey

Below are the homeowners insurance companies with average annual premiums below the state average of $942. We’ve included NerdWallet’s star rating for each company when available.

Company

Average annual rate

NerdWallet star rating

Selective

$519

3.5

NerdWallet rating 

Cumberland Mutual

$533

3.0

NerdWallet rating 

NJM

$536

5.0

NerdWallet rating 

State Farm

$734

4.0

NerdWallet rating 

Narragansett Bay

$737

Not rated

Preferred Mutual

$798

4.0

NerdWallet rating 

New Jersey Skylands

$887

Not rated

Franklin Mutual

$925

4.0

NerdWallet rating 

US Coastal

$930

Not rated

The cheapest companies on this list may not necessarily be the best or most affordable for your coverage needs. That’s why it’s smart to shop around with multiple insurers. Here’s more information about a few of the companies in the list above.

The cheapest option: Selective

If you prefer to buy insurance from a local business, Selective is worth considering. It’s based in Branchville, New Jersey, and sells policies through independent agents.

The company offers a variety of endorsements that you may be able to add to a standard homeowners policy. For example, Selective’s Identity Protection covers legal fees and other expenses associated with identity theft. The Home Cyber Protection endorsement covers damage to your phone, computer or tablet from cyber attacks or online fraud. Coverage may also be available for damage to underground service lines or the breakdown of major home systems.

On top of its affordable average rates, Selective may provide discounts for bundling your homeowners insurance with an auto policy, having protective devices in your home or paying your bill on time.

However, the company drew more consumer complaints to state regulators than expected for an insurer of its size, according to the National Association of Insurance Commissioners.

The best affordable option: NJM

Because it combines a high NerdWallet rating with a low average annual rate, we consider NJM to be the best home insurance company in New Jersey for many homeowners.

New Jersey-based NJM has earned a spot on NerdWallet’s list of the Best Homeowners Insurance Companies by including coverage that other companies typically charge extra for. For example, NJM will pay the full cost to rebuild your home even if it’s more than your dwelling limit. It will also pay enough for you to buy brand-new replacements for your belongings if they’re stolen or destroyed. (Many companies pay a lower amount based on depreciation.)

Also included: coverage for damage from water backing up through sewers or drains, plus ordinance or law coverage — which pays to rebuild your home to the latest building codes after a claim.

On top of its robust coverage options, NJM also stands out for customer service. It’s drawn far fewer complaints to state regulators than expected for an insurer of its size, according to the NAIC.

Discounts may be available if your home has storm shutters, impact-resistant glass, a smoke alarm or a sprinkler system. To learn more, read our NJM home insurance review.

The most affordable big insurer: State Farm

If you prefer a major nationwide company, consider State Farm: the largest home insurer in the U.S. Those who need personalized service can work with an agent, but you can do a lot on the State Farm website, too, including getting quotes, paying bills and filing claims.

One nice perk: State Farm offers three years of Ting service to help policyholders protect their homes from potential fires. The Ting service includes a plug-in sensor that can detect irregularities in your home’s electrical network. If the device finds a problem, Ting will help you arrange for repairs.

You may be able to customize your State Farm homeowners policy with an inflation guard rider, which raises your policy limits on a regular basis to make sure they keep up with inflation. State Farm may also offer replacement cost coverage for your personal belongings. This ensures you’ll receive enough to buy brand-new replacements for stolen or destroyed items rather than having the amount lowered for depreciation.

State Farm has drawn fewer consumer complaints than expected to state regulators for a company of its size. To learn more, read our State Farm home insurance review.

The best New Jersey homeowners insurance for different scenarios

Got a new house? You may pay less for homeowners insurance than the sample rates above. Have poor credit? You’ll probably pay more. The cheapest home insurance company for you will vary based on your circumstances. Below are a few examples.

The best New Jersey homeowners insurance for those with poor credit

In New Jersey, insurance companies can use a credit-based insurance score to help determine your homeowners insurance rates. This score is similar but not identical to a standard credit score. Those with poor credit tend to pay significantly more for insurance.

Below are the cheapest companies for New Jersey homeowners insurance if you have poor credit.

Company

Average annual rate

NerdWallet star rating

NJM

$823

5.0

NerdWallet rating 

Selective

$877

3.5

NerdWallet rating 

Franklin Mutual

$925

4.0

NerdWallet rating 

Preferred Mutual

$1,083

4.0

NerdWallet rating 

Narragansett Bay

$1,244

Not rated

The best New Jersey homeowners insurance for those with a recent claim

After you file a claim, your insurance company will probably raise your rate. Below are the companies that charge the least, on average, after a single water damage claim.

Company

Average annual rate

NerdWallet star rating

NJM

$595

5.0

NerdWallet rating 

Cumberland Mutual

$661

3.0

NerdWallet rating 

Selective

$678

3.5

NerdWallet rating 

Preferred Mutual

$798

4.0

NerdWallet rating 

State Farm

$806

4.0

NerdWallet rating 

The best New Jersey homeowners insurance for new homes

Newer houses often cost less to insure than older ones, especially if you choose one of the companies below. Rates shown are for a home built in 2021.

Company

Average annual rate

NerdWallet star rating

NJM

$311

5.0

NerdWallet rating 

Selective

$320

3.5

NerdWallet rating 

Cumberland Mutual

$439

3.0

NerdWallet rating 

State Farm

$475

4.0

NerdWallet rating 

American Strategic

$499

Not rated

The best New Jersey homeowners insurance for high deductibles

Opting for a higher deductible means you’ll have to pay a bigger share of any claims you file. But it can save you money on your annual premiums. Below are the cheapest companies for a New Jersey homeowners policy with a $2,500 deductible.

Company

Average annual rate

NerdWallet star rating

NJM

$390

5.0

NerdWallet rating 

Selective

$475

3.5

NerdWallet rating 

Cumberland Mutual

$505

3.0

NerdWallet rating 

Narragansett Bay

$583

Not rated

State Farm

$616

4.0

NerdWallet rating 

Average homeowners insurance cost in New Jersey by city

You may pay more or less than the state average for homeowners insurance based on where you live. See the table below for the average cost of homeowners insurance in some of New Jersey’s largest cities.

City

Average annual rate

Average monthly rate

Bayonne

$972

$81

Brick

$1,170

$97

Camden

$1,107

$92

Clifton

$917

$76

East Orange

$1,191

$99

Edison

$823

$69

Elizabeth

$987

$82

Jersey City

$1,066

$89

Lakewood

$999

$83

Newark

$1,148

$96

North Bergen

$971

$81

Passaic

$1,077

$90

Paterson

$1,101

$92

Piscataway

$815

$68

Plainfield

$872

$73

Toms River

$1,121

$93

Trenton

$991

$83

Union City

$993

$83

Vineland

$999

$83

West New York

$955

$80

What to know about New Jersey homeowners insurance

There are certain risks you may face when living in New Jersey. Here are a few of the most common, along with steps you can take to make sure your home is properly insured.

Hurricanes and tropical storms

Although most hurricanes make landfall in states farther south, New Jersey occasionally sees some serious storms. Hurricane Sandy, for example, caused billions of dollars in damage in 2012, while Hurricane Ida brought devastating floodwaters and tornadoes in 2021.

To protect yourself financially from hurricanes and tropical storms, you’ll need insurance for both wind and flood damage. While most homeowners insurance policies cover wind damage, they generally don’t cover flooding. If you live near the coast or in another area prone to flooding, you may want to buy separate flood insurance. (Depending on where you live, your mortgage lender may even require it.)

Your homeowners policy may have a separate hurricane deductible that’s higher than your general deductible for other types of claims. A hurricane deductible may be triggered if sustained wind speeds of at least 74 miles per hour are measured anywhere in the state.

A hurricane deductible is often a percentage of your home’s dwelling coverage rather than a flat dollar amount. So if your home is insured for $300,000 with a 5% deductible, you’ll have to pay for the first $15,000 of damage from a storm. You can find out whether you have a hurricane deductible by checking the declarations page of your policy.

In some cases, you may be able to reduce your hurricane deductible by taking steps to fortify your home against severe storms. This could include things like adding storm shutters or reinforcing exterior doors.

Winter storms

Winter weather can cause a variety of problems for your home, including bursting pipes and fallen trees. A standard homeowners policy often covers damage due to snow or ice, though it depends on the circumstances.

For example, damage resulting from a burst pipe might not be covered if you were away from home and left the thermostat set too low. If heavy snow knocks a tree onto your roof, that damage would likely be covered. But if the tree simply falls in your yard, your policy may not pay to remove it.

Tornadoes

Tornadoes may not be particularly common in New Jersey, but they can cause major destruction. A standard homeowners policy covers damage to your home due to windstorms, which include tornadoes. However, it may not cover damage to your trees or landscaping.

Leaking oil tanks

If your property has an underground storage tank for heating oil, you may want to check your homeowners policy to see what coverage you have. These oil tanks may leak, requiring expensive cleanup and potentially putting you at risk of a lawsuit if the damage spreads beyond your property line.

Some New Jersey homeowners insurance companies will charge you extra if you have an underground storage tank. They may also refuse to pay for damage on your property if the tank leaks. You may be able to get a certain amount of liability coverage for the tank. That means if you’re sued because a leak causes damage to someone else’s property, the company would help cover the costs.

How to get cheaper New Jersey home insurance

Here are a few ways to lower your homeowners premium in New Jersey.

Bundle your insurance policies. Many insurers offer discounts if you buy multiple policies, such as homeowners and auto insurance. Learn more about bundling.

Ask about discounts. Beyond bundling, other savings may be available for things like installing safety and security devices, going without claims for a certain number of years, living in a gated community and setting up autopay for your premiums. Ask your insurance agent which discounts might apply to you.

Shop around. Every insurance company offers slightly different pricing, so it’s worth comparing rates on a regular basis. Consider getting homeowners insurance quotes once a year from at least three companies. For a fair comparison, make sure you’re looking at equivalent coverage limits and deductibles.

New Jersey department of insurance

New Jersey’s Department of Banking & Insurance can help policyholders who have questions or complaints about their homeowners insurance. You can get information online or call the agency’s consumer hotline at 800-446-7467.

By law, you must receive a one-page coverage summary when you buy or renew your New Jersey homeowners insurance policy. This document explains what your policy does and doesn’t cover.

Looking for more insurance in New Jersey? Check out these resources:

Frequently asked questions

Unlike auto insurance, homeowners insurance isn’t required by law in New Jersey. But if you have a mortgage, your lender will probably require you to buy coverage for the home.

The average cost of home insurance in New Jersey is $942 per year, which works out to about $79 per month, according to a NerdWallet rate analysis.

A standard homeowners insurance policy covers the full structure of your house, including the roof. But whether the policy will pay to repair or replace your roof depends on the cause of the damage. As long as the roof was damaged by something your policy covers — such as fire or heavy snow — your policy will generally pay for repairs, minus your deductible. However, homeowners insurance won’t cover damage due to negligence or simple wear and tear.

Methodology

NerdWallet averaged rates for 40-year-old homeowners from a variety of insurance companies in every ZIP code across the state. Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1997. They had a $1,000 deductible and the following coverage limits:

  • $300,000 in dwelling coverage.

  • $30,000 in other structures coverage.

  • $150,000 in personal property coverage.

  • $60,000 in loss of use coverage.

  • $300,000 in liability coverage.

  • $1,000 in medical payments coverage.

We used the same assumptions for all other homeowner profiles, with the following exceptions:

  • For homeowners with a claims history, we added a single water damage claim.

  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for homeowners with poor credit.

  • To see the effect of changing your deductible, we raised the deductible from $1,000 to $2,500.

  • For homeowners with newer homes, we changed the year the house was built to 2021.

These are sample rates generated through Quadrant Information Services. Your own rates will be different.

Star rating methodology

NerdWallet’s homeowners insurance ratings reward companies for customer-first features and practices. Ratings are based on weighted averages of scores in several categories, including financial strength, consumer complaints, coverages, discounts, online experience and more. Our “ease of use” category looks at factors such as website transparency and how easy it is to file a claim. These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.

Complaint methodology

NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2018-2020. To assess how insurers compare to one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. Ratios are determined separately for auto, home (including renters and condo) and life insurance.

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