Advertiser Disclosure

NJM Homeowners Insurance Review 2021

NJM’s standard homeowners policy is more generous than most, but the coverage is available in five states only.
July 22, 2021
Homeowners Insurance, Insurance
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own.

NJM may operate in only a handful of states, but when it comes to coverage, it punches above its weight. NJM home insurance includes not only the basics you’d expect but also a suite of additional coverage that would cost extra at many other companies.

Combine that with a user-friendly website and a lower-than-expected rate of consumer complaints, and you’ve got a home insurance company that’s worth considering if you live in one of the states it serves.

NJM home insurance pros and cons

Includes coverage for which some other companies charge extra.Available in five states only.
Received fewer consumer complaints than expected for a company of its size.
Numerous extra coverage options available.

How NJM home insurance rates

5.0 NerdWallet rating

NJM homeowners insurance earned 5 out of 5 stars for overall performance. NerdWallet’s ratings are determined by our editorial team. The homeowners insurance scoring formula takes into account policy coverage options and discounts, ease of filing a claim, website transparency, the financial strength of the company, complaint data from the National Association of Insurance Commissioners and more.

Based on these ratings, NJM is among NerdWallet’s Best Home Insurance Companies for 2021.

NJM home insurance state availability

NJM offers homeowners insurance in Connecticut, Maryland, New Jersey, Ohio and Pennsylvania.

NJM home insurance coverage

You can customize your homeowners policy with numerous add-ons, but below are the types of coverage that generally come standard:

Type of coverageWhat it does
DwellingPays to repair or rebuild the structure of your home.
Other structuresCovers damage to unattached structures such as a shed or fence.
Personal propertyPays to repair or replace personal belongings such as furniture or clothing.
Additional living expensesPays for hotel stays, restaurant meals or other expenses if you have to live elsewhere while your home undergoes covered repairs.
LiabilityCovers legal expenses and damages if you're responsible for injuries to other people or their property.
Medical paymentsCovers injuries to guests in your home, regardless of fault.

For more details, see Homeowners Insurance: What It Is and What It Covers.

In addition to this standard coverage, NJM includes four additional types of coverage that often cost extra at other companies:

  • Guaranteed replacement cost coverage, which ensures enough of a payout to rebuild your home with similar materials even if your dwelling coverage falls short. To be eligible for this coverage, you must insure your home to NJM’s full recommended replacement cost limit.
  • Replacement cost coverage for your personal belongings, which pays out enough for you to buy new belongings if yours are stolen or destroyed. (Other companies may pay out less to reflect the depreciated value of older items.)
  • Water backup coverage, which pays to repair damage if your sump pump overflows or water backs up into your home.
  • Ordinance or law coverage, which pays for expenses associated with upgrading your home to current building codes after a covered claim.

You can further customize your policy with the following add-ons:

  • Extra coverage for valuable items like jewelry and heirlooms.
  • Extra fraud protection in case you’re a victim of credit card fraud, a forged check or counterfeit money.
  • Identity fraud coverage, which pays up to $15,000 for expenses you encounter if your identity is stolen.
  • Earthquake insurance, which pays for damage to your home or belongings from an earthquake (not available in Connecticut).
  • Coverage for fungi damage or issues such as wet or dry rot.
  • Supplemental loss assessment, which covers up to $5,000, depending on your policy, when your condo or homeowners association is liable for an injury or property damage and you must pay your share.
  • Assisted living care coverage, which extends personal property and liability coverage to a relative in a nursing home or similar facility.
  • Increased coverage for items in storage, which raises your coverage limit for belongings in a self-storage unit.
  • Increased coverage for other structures, which raises your coverage limit for sheds, pools and other nonattached structures on your property.

» MORE: 10 kinds of damage home insurance won’t cover

NJM home insurance discounts

NJM may offer the following ways to save money on your homeowners policy, depending on where you live:

  • Multipolicy discount.
  • Discount for features such as smoke detectors, burglar alarms and automatic sprinkler systems.
  • Nonsmoking discount.
  • Discount for being 65 or older.
  • Discount for having an automatic backup power supply or portable generator.
  • Paid-in-full and electronic payment discount.
  • Paperless discount.
  • Discount for having impact-resistant glass on all windows.

» MORE: 9 ways to cut the cost of homeowners insurance

NJM home insurance complaints

NJM received fewer than the expected number of home insurance complaints to state regulators relative to its size, according to three years’ worth of data from the National Association of Insurance Commissioners. (NAIC home insurance complaints also cover other home policy types, including mobile home, renters and condo insurance.)

NJM home insurance consumer experience

Website: You can use the NJM website to get a quote, make a payment, view policy details and upload documents. The site also has a useful FAQ section with information about coverage, the claims process and more.

Claims: You can report an NJM home insurance claim by phone or on the NJM website, where you can also track existing claims.

» MORE: 6 ways to streamline insurance payment on home damage claims

Homeowners insurance buying guide

You can get home insurance quotes online, over the phone or through an agent. But before you start, take the following steps:

  1. Determine how much coverage you need. Is a standard policy sufficient, or do you want to add extra insurance for situations like identity theft or sewer backups? Check whether each company you’re considering has the options you need.
  2. Take inventory. To ensure you have sufficient personal property coverage, take stock of your belongings. Include all furniture, electronic devices, clothing, jewelry and household items. How much would it cost you to replace them? This total is the minimum amount of personal property insurance you should have.
  3. Make a fair comparison. When evaluating rates, make sure each insurer is offering the same limits and deductibles.
  4. Check consumer complaints. Although it may seem tempting simply to choose the cheapest option, look at how many consumer complaints each insurer has before choosing a policy. Poor customer service could have a significant impact on your experience if you ever need to file a claim.

NJM home insurance FAQ

Does NJM insure mobile homes?

No, NJM doesn’t offer coverage for manufactured or mobile homes. To research other options, see our guide to manufactured and mobile home insurance.

What other types of insurance does NJM offer?

NJM sells auto, condo, renters, umbrella and commercial insurance. To learn more, read our NJM auto insurance review.

Does NJM home insurance have dog breed restrictions?

No. NJM doesn’t reject homeowners applications or limit liability coverage due to the breed of dog you have.

Does NJM home insurance cover roof leaks?

It depends on why your roof is leaking. If the cause is something excluded by your homeowners policy, such as wear and tear, any damage from the leak won’t be covered. But other causes, such as a windstorm that ripped a piece of the roof off, would likely be covered.

Homeowners insurance ratings 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. 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.

Insurer complaints 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.


About the author