To outsiders, New Jersey is the setting of “The Sopranos,” the birthplace of icons like Bruce Springsteen and Jon Bon Jovi, and the home of the Jersey Shore. But those who call Jersey home know the Garden State could never be explained so simply. Lifelong New Jerseyites understand the implications of a person’s parkway exit, the nuanced differences of north Jerseyans and south Jerseyans, and the best ways to avoid toll roads. New Jersey’s nature lovers know there’s always a scenic place to enjoy all four seasons outside of the state’s bustling cities, from its peaceful gardens to its forests and East Coast beaches. 

Whether you’re from North, South, or Central Jersey—or if you’re so new to the state that you still try to pump your own gas—you have probably come to appreciate Jersey’s vast differences. But these differences aren’t only between sports fans or North and South Jersey residents. New Jersey’s natural disasters can range from forest fires to winter storms, from droughts to floods. Not to mention the state’s crime rates vary greatly from neighborhood to neighborhood. The best way to ensure your home is protected in case of any peril is with home insurance. New Jersey storms can be overwhelming, but protecting your home doesn’t have to be.  

Insurify makes it easy to find the best homeowners insurance in New Jersey. Use Insurify’s comparison tools to view home insurance companies, insurance coverage, and insurance costs side by side. With Insurify, you can find a homeowners policy that fits your needs at a price you love in just minutes.

Keep reading for our full guide on New Jersey homeowners insurance.  

How to Get Affordable Home Insurance in New Jersey

New Jersey is the most densely populated state in the U.S., with over 1,200 New Jersey residents per square mile. It makes sense, as many people move to New Jersey for its ample job opportunities or its affordable living expenses and short commute to New York City. Good news for all the state’s homeowners—and in case New Jerseyans needed another reason to have pride in their state—New Jersey homeowners insurance rates are roughly 24 percent cheaper than the national average

Before you jump into the cheapest home insurance policy you find, it’s important to understand why you need homeowners insurance in New Jersey at all. Although home insurance is not required by law, homeowners often need to show proof of insurance to take out a mortgage. Even if you aren’t required to purchase a homeowners insurance policy, purchasing one will ensure your home and personal belongings are protected in case of perils like natural disaster or theft.

New Jersey homeowners insurance quotes can still get pricey depending on the coverage options you’re looking for. If you need multiple insurance products like home insurance, car insurance, or even life insurance, bundling your policies can lower your average costs. Most insurance carriers will allow policyholders to bundle home and auto insurance policies and save, so ask your local agent if this can help lower your New Jersey homeowners insurance rates.

Homeowners insurance quotes in New Jersey by Company 

Homeowners insurance rates aren’t always designed with savings in mind. That’s where Insurify comes in.

As of 2020, the average home insurance premium in New Jersey costs $921 annually, and the median home value is $353,518.

But the cost of your New Jersey homeowners insurance policy is custom to your home, your neighborhood, and your desired coverage. Your homeowners insurance covers the cost of repairs following natural disasters, replaces personal belongings in the case of theft or vandalism, and even provides personal liability insurance and covers medical payments if someone is hurt on your property. You may want more coverage depending on where you live, especially if your New Jersey neighborhood is considered high-risk for perils like flooding or theft.

This is why the best homeowners insurance policy for you may be different than the best home insurance policy for your neighbor. It’s important to know the various policies and coverages that different insurance agencies offer in order to find the best home insurance company for you. There are so many homeowners insurance companies in New Jersey, and the average Liberty Mutual, Chubb, or Allstate premium may include different coverage than the average State Farm or New Jersey Manufacturers’ homeowners insurance premium

Average Home Cost in New Jersey Average Annual Insurance Premium in New Jersey
$353,518 $921

Homeowners Insurance Quotes in New Jersey by City

New Jersey homeowners insurance quotes are as different as its neighborhoods. Just as north New Jersey bears little resemblance to the south, the average rates in each New Jersey city are based on various factors that differ in every ZIP code. Variables such as the volume of claims filed nearby, crime rates, property costs, and risk variables, such as natural disaster frequency, all factor into home insurance rates

New Jersey homeowners insurance quotes are highest in cities like Newark, Jersey City, and Asbury Park, all of which offer rates upwards of $200 higher than the state’s average premiums.

Trenton and Paterson homeowners can expect costs closer to the state’s average rates, while those living in Hoboken and Clifton have some of the lowest home insurance rates in the state. But low rates can leave homeowners paying more out of pocket after perils, so homeowners in areas with higher crime rates like Hoboken may consider paying a slightly higher premium for more homeowners insurance coverage in return.

No matter which New Jersey neighborhood you live in, rates in New Jersey are still relatively low compared to the national average. Here are the most and least expensive ZIP codes in New Jersey for home insurance.

Most Expensive Real Estate in New Jersey  Cheapest Real Estate in New Jersey
Ridgewood $735,383 Camden $69,057
North Caldwell $715,284 Phillipsburg $179,363
Palisades Park $701,311 Trenton $191,267

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What does home insurance cover in New Jersey?

There are several types of home insurance. Specific terms of insurance policies may vary by state, but in general, the standard policy types are as follows:

HO-1

Basic

  • The simplest and least comprehensive type of homeowners insurance
  • Provides coverage for a handful of potential problems, including
    • natural disasters (storms, fires, wind, lightning, volcanic eruption), 
    • explosions, 
    • theft, 
    • damage from vehicles, 
    • or civil commotion. 
HO-2

Broad Form

  • Broad form homeowners insurance policies include all basic form coverage, plus protection from:
    • falling objects, 
    • damage from the weight of ice, snow, or sleet, 
    • freezing of household systems including HVAC and pipes, 
    • sudden and accidental damage to pipes and other household systems from artificially generated electrical current, 
    • accidental discharge or overflow of water or steam,
    • sudden and accidental damage. 
  • HO-2 policies typically cover both dwelling protection and personal property.
  • In some cases, broad form coverage may also include liability coverage. However, it still only covers the specific damages listed in the policy.
HO-3

Special Form

  • The most common form of homeowners insurance is known as a “special form” policy.
  • While HO-1 and HO-2 policies are “named peril” policies (meaning they only cover dangers that are specifically listed in the policy), HO-3 policies are “open peril” policies meaning they’ll cover all dangers except those specifically excluded in the policy documents.
HO-4

Tenant’s Form

  • HO-4 policies, also known as renters insurance, are for people who lease rather than own their homes. 
  • Tenant’s form policies typically cover all the same dangers as HO-2 policies. 
  • These policies include personal property coverage and liability coverage but don’t cover the physical structure of the house. 
  • Some HO-4 policies may also include loss of use coverage for the tenants.
HO-5

Comprehensive

  • Comprehensive form policies are usually the broadest and provide the highest level of coverage; not surprisingly, they also tend to be the most expensive type of homeowners insurance policies.
  • The biggest difference between HO-3 and HO-5 policies is that most HO-3 policies are “actual cash value” policies, whereas typically HO-5 policies are “replacement cost value” policies.
  • An actual cash value policy will only reimburse you for the actual value of a damaged or destroyed item, while a replacement cost value policy will reimburse you for however much it would cost to completely replace or repair the damaged or destroyed item (up to the coverage limits on the policy). 
  • HO-5 policies also provide personal property coverage against a wider range of dangers than the typical HO-3 policy. Many HO-5 policies also have extra coverage for high-value personal property, such as jewelry and artwork.
HO-6

Condo Form

  • Not surprisingly, condo form insurance is for condominium owners. HO-6 policies generally protect against the same types of dangers as HO-3 policies. 
  • They provide dwelling protection coverage with a twist: HO-6 policies cover the walls, floors, and ceiling of the condo unit but not the rest of the building. 
  • These policies also include personal property and liability coverage and may include loss of use coverage.
HO-7

Mobile Home Form

  • If you own a mobile home or manufactured home, you likely have an HO-7 policy. 
  • Mobile home form policies are typically identical to HO-3 policies, except they’re designed specifically for mobile and manufactured homes.
  • Like HO-3 policies, they provide dwelling protection coverage, other structures coverage, personal property coverage, liability coverage, and possibly loss of use coverage as well. 
  • HO-7 policies generally only protect the home when it’s stationary; if you plan to move your mobile or manufactured home, you’ll need to get a special policy to cover it while it’s in transit.
HO-8

Older Home

  • Older homes have generally been built to less stringent code standards than recently built homes, and so insurers have designed a specialized type of homeowners insurance policy for them. 
  • HO-8 policies often only cover the basic perils listed in HO-1 policies and generally apply to homes that are registered landmarks or otherwise deemed historic homes. 
  • Owners of registered landmarks are typically forbidden from making the updates to HVAC, electrical, and other parts of the home that would enable them to qualify for a standard HO-3 policy, so an HO-8 policy is often the only option for them.

Flood Insurance in New Jersey

New Jersey’s coastal border leaves the state at risk for flooding during hurricane season and through the snowy winter months. But your dwelling coverage alone will not cover the cost of damages from hurricanes or melted snow. Since home insurance policies do not include flood damage as a covered loss, most New Jersey homeowners insurance companies will require policyholders seeking this coverage to purchase a flood insurance policy.

Homeowners can purchase a flood insurance policy directly through the National Flood Insurance Program (NFIP) or with the help of their insurance agents. A policy with the NFIP ensures that a policyholder’s entire home, electrical systems, water heaters, and even detached garages and solar panels are covered if damaged in a flood. Some flood policies even include the cost of replacing clothes, furniture, and valuable items, so make sure your flood coverage offers as much protection as your New Jersey home needs. 

What to Know About the New Jersey FAIR Plan

New Jersey’s FAIR Plan is a program that offers insurance coverage to homeowners who do not qualify for insurance through private carriers for a multitude of reasons. Residents can either apply to New Jersey’s FAIR Plan on their own or with an insurance agent’s help. 

The FAIR Plan will cover most structures, including homes, mobile homes, apartment units, and even commercial buildings, but only provides basic property coverage. Policyholders can add optional theft coverage to their property policy through the FAIR Plan but do not have any options for liability coverage through the program. 

New Jersey Homeowners Insurance FAQs

What is surplus lines insurance, and how do I know if I need it for my New Jersey home?

Surplus lines insurance is meant to cover perils that are too expensive for the average insurance company to cover. This can include policies like flood insurance and earthquake insurance. If you live in a high-risk area and are looking for coverage for a specific peril, then you should seek this coverage. Most New Jersey homeowners will not need surplus lines insurance coverage outside of a flood insurance policy. But if you are concerned about your coverage options, ask your local agent what type of policy is best for you.

Does my New Jersey homeowners insurance cover damage caused by snow?

Yes and no. Most home insurance policies will cover any damage caused by the weight of ice and snow. So if your roof gives in due to the weight of accumulated snow, then you’re covered. But if snow or ice causes flooding in your home, you’re going to need a flood insurance policy to cover the costs of repairing the damages. Ask your insurance carrier what type of snow damage your policy covers so you can make sure your home is protected before you have to start the claims process.

Should I add hurricane insurance to my homeowners insurance in New Jersey?

This year, there is a higher probability than ever of New Jersey experiencing a land-falling hurricane. And with this year’s already record-setting storm season, it’s clear to see why New Jersey homeowners would want to make sure their homes are protected in case of a hurricane. While basic homeowners policies include wind damage and storm damage as a covered loss, it is likely not enough to cover the cost of hurricane damages. The best way to make sure your home and belongings are protected if a hurricane comes around is with a flood insurance policy. If you are in an especially at-risk area, you may also consider an additional windstorm insurance policy.

Special Home Insurance Situations in New Jersey

Unique elements of your home may affect homeowners insurance prices. Check out these quotes for some special situations that may impact your home insurance in New Jersey.

Cheapest Home Insurance for Houses Near a Fire Department in New Jersey

Insurance Company Average Annual Premium
Allstate $795
Hanover $1,092
Palisades Group $1,330
Travelers $788

Cheapest Home Insurance for Houses Near the Coastline in New Jersey

Insurance Company Average Annual Premium
ASI $684
Homesite $1,030
Preferred Mutual $1,350
United P&C $490

Cheapest Home Insurance for Houses With a Swimming Pool in New Jersey

Insurance Company Average Annual Premium
Franklin Mutual $703
NJ Manufacturers $1,467
State Farm $1,123
USAA $1,255

Conclusion: How to find the cheapest home insurance in New Jersey

New Jersey is a great place to start a home, so don’t let the stress of home insurance shopping get in the way of enjoying your new humble abode. With Insurify’s comparison tools, you can find the best New Jersey homeowners insurance policy for you and secure savings in minutes. That way, you can get back to going down the shore and exploring all that New Jersey has to offer in no time.

Use Insurify to compare home insurance premiums for your property in New Jersey. Our comparison tools make homeowners insurance shopping (and saving) simple so you can be on your way to enjoying your newly insured home in no time.

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Browse, compare, and secure home insurance with Insurify today! 

Yep, it’s that easy. 

Updated September 24, 2020

Jacklyn Walters is a freelance writer for Insurify. Jacklyn has a background in journalism and is passionate about informing and serving others through writing. In her spare time, Jacklyn enjoys running, practicing yoga, and writing music.