The Best Home Insurance in New Jersey for 2023

The average cost of homeowners insurance in New Jersey is $965 per year — well below the national average of $1,820 per year. This is based on a sample homeowner with $300,000 of dwelling coverage, $300,000 of liability coverage, a $1,000 deductible and good credit.

NerdWallet analyzed data from several 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. These rates are estimates and depend on many different factors, so yours may vary.

Note: Some insurance companies included in this article may have made changes in their underwriting practices and no longer issue new policies in your state.

The best homeowners insurance in New Jersey

If you’re looking to buy homeowners insurance from a well-rated national brand, consider one of these insurers from NerdWallet’s list of the Best Homeowners Insurance Companies.

More about the best home insurance companies in New Jersey

See more details about each company to help you decide which one is best for you.

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.)

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

To learn more, read our NJM home insurance review.

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.

To learn more, read our State Farm home insurance review.

Homeowners policies from Farmers may include two valuable types of insurance: extended dwelling and replacement cost coverage. Extended dwelling coverage gives you extra insurance for the structure of your house, while replacement cost coverage offers higher reimbursement for stolen or destroyed belongings.

Some Farmers policies also come with perks that can save you money. For example, with Declining Deductibles you can get a $50 credit toward your deductible for each year you renew your policy. And with Claim Forgiveness, Farmers won’t raise your rate for a claim as long as you haven’t filed one within the past five years.

For more information, see NerdWallet’s Farmers homeowners insurance review.

Chubb serves mostly affluent policyholders with high-value homes, offering lofty coverage limits and lots of perks. For example, the company covers water damage from backed-up sewers and drains, and it pays to bring your home up to the latest building codes during reconstruction after a claim. (Many insurers charge more for these types of coverage.)

New Jersey homeowners who have a seasonal home insured with Chubb can sign up for the free Chubb Property Manager service. If a hurricane affects your area, Chubb will send someone out to check the status of your home, file a claim if applicable and protect the house from further damage.

For more information, see NerdWallet’s Chubb homeowners insurance review.

The Hanover gives homeowners lots of choices. You can opt for an auto/home package, a policy designed for high-value homes or a stand-alone policy for a standard house. You can further customize your policy with a range of coverage options for things like guaranteed replacement cost coverage, which will pay as much as it takes to rebuild your home after a disaster.

The Hanover sells policies exclusively through local independent agents. That means online quotes aren’t available, but you can get personal service to help you choose the right coverage.

For more information, see NerdWallet’s Hanover homeowners insurance review.

USAA serves the military community, including active members, veterans and their families. If you fall into one of these categories, you may want to give USAA home insurance policies a look.

Standard USAA homeowners policies include replacement cost coverage for your personal belongings. That means if your stuff is stolen or destroyed, the company will pay enough for you to buy brand-new replacements. (Many companies pay less for older, less valuable items.) USAA also covers military uniforms with no deductible for active or deployed members.

To learn more, read our USAA homeowners insurance review.

How much does homeowners insurance cost in New Jersey?

The average annual cost of home insurance in New Jersey is $965. That’s 47% less than the national average of $1,820.

In most U.S. states, including New Jersey, many insurers use your credit-based insurance score to help set rates. Your insurance score is similar but not identical to your traditional credit score. 

In New Jersey, those with poor credit pay an average of $1,705 per year for homeowners insurance, according to NerdWallet’s rate analysis. That’s 77% more than those with good credit.

» MORE: Does your credit score affect home insurance rates?

Average cost of homeowners insurance in New Jersey by city

The cost of your policy depends on where you live in New Jersey. For example, the average cost of homeowners insurance in Newark is $1,110 per year, on average, while homeowners in Piscataway and Edison pay just $845 per year, on average.

» MORE: What’s the average cost of homeowners insurance?

The cheapest home insurance in New Jersey

Here are the insurers we found with average annual rates below the New Jersey average of $965.

» MORE: The cheapest homeowners insurance

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 insure your home properly.

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.)

» MORE: Why you might need flood insurance - even if it's not required

If you live near the coast, 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 typically 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 your homeowners declarations page.

In some cases, you may be able to eliminate your hurricane deductible by taking steps to fortify your home against severe storms. This could include things like reinforcing the roof or bracing garage doors.

» MORE: Complete guide to hurricane insurance

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 someone sues you because a leak causes damage to their property, the company would help cover the costs.

New Jersey department of insurance

New Jersey’s Department of Banking and 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?

• New Jersey car insurance.

• Jersey City car insurance.

• Newark car insurance.

• Medicare Advantage plans in New Jersey.

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