Best Homeowners Insurance in New Jersey May 2024 (2024)

After in-depth research, we at the Guides Home Team found the following are New Jersey’s best homeowners insurance providers.

• Hippo: Our pick for fast quotes
• Liberty Mutual: Our pick for discounts
• Allstate:Our Pick for Extended Coverage
• Travelers:Our Pick for Deductible Savings
• Progressive:Our Pick for Bundling
• Lemonade:Our Top Pick for Fast Claims

According to 2023 homeowners insurance data from Quadrant Information Services, the average cost of homeowners insurance in New Jersey is $1,315.00, which is lower than the national average of $2,511.25.

Several factors impact home insurance rates in New Jersey, including the risk of natural disasters, crime rates and other property-related factors.

• Location: If your property is in coastal areas like Atlantic City or the Jersey Shore, it is more vulnerable to natural disasters like hurricanes and flooding. This will cause insurers to consider it risky to provide you with a policy and charge higher rates. If you live in a flood-prone area, you might have to purchase a flood endorsem*nt, adding to your overall premium cost.
• Crime rate: An area’s crime rate also affects how much you pay for home insurance. For instance, if you live in a region with a higher crime rate like Camden, Newark or Trenton, expect to pay higher insurance rates due to an increased risk of theft and vandalism.
• Property age and condition: Older homes are generally expensive to insure because they could require more maintenance and frequently face issues related to plumbing and electrical systems. In New Jersey, older homes are common in historical areas like Princeton and Morristown.
• Fire protection services: Rural areas generally have limited access to fire protection services, which can increase your home insurance rates.
• Credit score and claims history: Besides property-related factors, your credit score and claims history also affect your home insurance costs. These factors help insurers determine how risky you are to insure.

The most common home insurance claims in New Jersey are related to severe natural weather events and crimes like theft.

Wind Damage

New Jersey’s coastal areas are prone to strong winds. Data from the National Oceanic and Atmospheric Administration (NOAA) shows there were more than 500 thunderstorm wind events reported in the last five years. You can properly seal your doors and windows to protect against wind damage. You can also use storm shutters or impact-resistant windows.

Flooding

Based on data from NOAA, there were 54 flooding events in New Jersey during the last five years. These events generally cause significant damage and are often a result of heavy rainfall or storm surges. Since a standard home insurance policy does not cover flooding, you must purchase a separate flood policy or an endorsem*nt for sufficient protection. You can seal basem*nt walls and install sump pumps to minimize flood risk.

Theft

Crime data from the New Jersey government shows 12,983 burglary incidents in the state in 2020. To protect against theft, you can enhance your property's security system, which includes installing alarms, motion detectors, surveillance cameras and deadbolt locks on doors. These measures might also help you lower your premiums as most insurers offer discounts for improving your home's security.

Recommended Home Insurance Coverage in New Jersey

Most standard home insurance policies cover your property’s structure against damages from perils like fire, wind or hail. Home insurance also covers theft or damage to your personal items, liability costs in case someone is injured on your property and additional living expenses if your home becomes uninhabitable.

However, since you face unique risks while living in New Jersey, we recommend adding these endorsem*nts to your policy:

• Flood insurance
• Additional windstorm coverage
• Enhanced theft protection
• Ordinance or law coverage

The average cost of home insurance in New Jersey is lower than the national average, but you can lower your premium even further. We explain some ways to save money on home insurance in the Garden State below.

See if You Qualify for Discounts

Generally, every home insurance provider offers various policy discounts. The following discounts are the easiest to qualify for and can result in significant savings.

• Multi-policy bundling: You can lower your premiums if you buy different insurance policies from the same company and take advantage of a bundling discount.
• Protective devices: Most insurers offer a discount for installing devices that make your home safer, which include fire alarms, smoke detectors and burglar alarms.
• New homebuyer: You can save on your premiums if you have recently purchased a new property.
• Pay-in-full: It’s possible to qualify for a discount if you pay your annual premium in a lump sum rather than in monthly installments.
• Claims-free: Most insurance providers will offer you a discount if you have not filed a claim for a specified period, generally three years.

Compare Quotes From Various Providers

Before you finalize an insurer, obtain quotes from various providers and compare rates. Each insurer evaluates your application differently and determines rates based on several factors. Shopping around and comparing rates ensures you get the best deal based on your needs and specific situation.

Determine the Right Amount of Coverage

To save money on your policy, avoid over-insuring your home and opt for the right coverage amount based on your situation. When determining the right amount of coverage, the most important factor to assess is your property’s replacement cost, not its market value. In other words, consider how much it would cost to rebuild your home after a total loss. It is also important to regularly review and adjust your policy, especially after new home improvements, to ensure you have enough coverage.

Implement Wind Damage Protection Measures

Wind damage is a significant cause of home insurance claims nationwide, and New Jersey is at risk due to its coastal location. If you implement protection measures against wind damage, you can save on your policy. Protection measures include upgrading to wind-resistant roofing materials, installing storm shutters, securing external structures, regularly trimming trees and removing debris.

• Home Warranty New Jersey
• Moving Companies New Jersey
• Pet Insurance New Jersey
• Solar Incentives New Jersey
• Solar Panel Cost New Jersey

Read our comprehensive guides on the following insurance categories to find top providers and peace of mind that you have all aspects of life covered.

• Leading Pet Insurance Companies
• Top Travel Insurance Companies
• Best Homeowners Insurance Providers
• Leading Renters Insurance Companies
• Affordable Renters Insurance Providers
• Top Term Life Insurance Providers
• Budget-friendly Homeowners Insurance Companies

Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores according to our home insurance rating methodology:

• Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
• Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsem*nts to determine the quality of coverage.
• Availability and ease of use (15%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
• Brand trust (15%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.

Companies with the best customer service exhibit 24/7 availability, useful digital tools and a quick claims-filing process. Providers that offer extensive discount options, endorsem*nts, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.

AM Best Disclaimer

Mark Carroll is a content director with more than a decade of writing and editing experience. He has researched and covered topics related to home finances, home improvement, and home products for MarketWatch, helping answer key consumer questions and connecting readers with the brands that meet their needs. Prior to his time in the home space, Mark worked in sports media as a news reporter and managing editor.

Mark Friedlander is Director, Corporate Communications, at the Insurance Information Institute (Triple-I), a New York-based nonprofit research and education organization focused on providing consumers with a better understanding of insurance. Mark serves as a national spokesperson for the Triple-I, handling a wide array of insurance industry media issues. His responsibilities also include spearheading the association’s hurricane season communications strategy and its member company support and media outreach in Florida, where he is based.