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The average cost of home insurance in New Jersey is $144 per month, and a wide range of reputable insurance companies offer homeowners insurance in The Garden State, such as Nationwide, Stillwater, and Liberty Mutual. However, purchasing additional coverage may increase your insurance spending.
Keep reading to learn more about how you can find the best homeowners insurance to meet your needs in New Jersey.
Table of contents
- Best home insurance companies in New Jersey
- How much is homeowners insurance in New Jersey?
- What are the cheapest home insurance companies in New Jersey?
- How much homeowners insurance do you need in New Jersey?
- What are some of the biggest risks when owning a home in New Jersey?
- How can you save money on homeowners insurance in New Jersey?
- Average home replacement cost in New Jersey
- New Jersey home insurance FAQs
Best home insurance companies in New Jersey
Many quality insurance companies serve homeowners in New Jersey, but which home insurance company is best for you will depend on your individual situation and needs. Here’s a closer look at some of the best home insurance companies in New Jersey based on several different needs and preferences.
Best large insurer: Nationwide
Nationwide earned a J.D. Power score of 816 on a 1,000-point scale. This score represents the level of overall customer satisfaction with the company. Nationwide is a great option for homeowners who are looking for an insurance company with a lot of potential discounts, and it has an average monthly premium of $126.
Overall high rate of customer satisfaction
Offers several insurance policy types to enhance bundling opportunities
Wide reach allows you to keep your coverage if you move
Coverage doesn’t include identity theft or water damage protection
Lack of small boutique experience
More expensive than many of its competitors
See Also: Homeowners Insurance Companies with the Cheapest Rates
Best insurer for cheap rates: Stillwater
At only $90 per month on average, Stillwater offers the lowest home insurance prices in New Jersey. It also offers renters, condo, and auto insurance, among other policy types.
Very low average monthly cost
Several discounts available
Opportunity to bundle home and auto insurance
Company is less established, being founded in 2000
Not included in J.D. Power’s 2022 customer satisfaction survey
Animal and personal liability must be added to the policy separately
Best for hurricane coverage: Liberty Mutual
New Jersey homeowners are at risk of hurricane damage, and the standard homeowners insurance policy from Liberty Mutual includes coverage for hurricane damage.
Policyholders pay an average of $133 per month for coverage through Liberty Mutual.
Several policy types available
Robust online tool makes managing your policy simple
Discounts are available if you make upgrades to your home
J.D. Power score of 805 is lower than some competitors
You must pay extra for water damage coverage
Keeping coverage at pace with inflation will cost you extra
Best insurer for high-value homes: Travelers
Travelers was included in the J.D. Power 2022 customer satisfaction survey and earned a score of 794. For those with high-value homes, Travelers may be a good fit, as it can provide replacement cost coverage starting at $1 million.
The average monthly premium is $238.
One of a few companies offering coverage for high-value homes
Several discounts available, including a green-home discount
Can bundle multiple policies, including home, auto, and even wedding insurance
Fewer discounts than some other large competitors
J.D. Power score is lower than average
Among the most expensive premiums in New Jersey
Best regional insurance company: Hippo
Hippo isn’t available in every state, but it’s available to New Jersey homeowners, as well as the rest of the Mid-Atlantic region. Hippo only offers landlord, HOA, HO-3, and fire insurance. The average cost is $178 per month.
Offers a discount for new homes
You can file a claim in 60 seconds
Offers four times the coverage limit of its competitors for computers and office equipment
Doesn’t offer life or auto insurance and policy can’t be customized with add-ons
No multi-policy discount available
Website is difficult to navigate
Insurify’s team of data scientists analyze millions of home insurance quotes, and weigh publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.
How much is homeowners insurance in New Jersey?
Many different factors can influence how much a homeowner will spend to insure their home, including their credit history and where they live. Another major factor that influences homeowners insurance costs is the type of policy they choose.
How your policy choices affect home insurance rates in New Jersey
Here’s how your choices can affect the price of your policy and what you’ll pay for home insurance in New Jersey.
Your policy form
You can generally choose between a few types of homeowners insurance policies, which affects the amount of coverage you get and how much you’ll spend (the less coverage, the less you’ll spend). These are the main types of home insurance policies:
HO-1: This is the most basic policy someone can get and only covers 10 perils.
HO-2: You can expect 16 covered perils.
HO-3: Open perils coverage for dwelling and other structures and named perils coverage for your personal property are included in an HO-3 policy.
HO-5: This is the most robust (and most expensive) type of coverage and is a good fit for those with a lot of expensive personal property.
Before buying a policy, you want to double-check which perils you’ll get coverage for, as perils are the events that damage your home or belongings or that put you at risk for liability.
Learn More: What Are Perils in Insurance?
Your coverage level
The more coverage someone has, the more expensive their premium. That’s why it’s a good idea to occasionally re-evaluate how much coverage and the types of coverage you need. For example, if you sell your $10,000 grand piano, you may be able to lower your personal belonging coverage.
Your deductible is how much you’ll spend on repairing damage under a covered event before the insurance company starts providing coverage. When you enroll in a homeowners insurance policy, you can choose your deductible. The higher your deductible, the lower your monthly premium.
It can be tempting to choose a high deductible to access a lower monthly premium, but make sure you have money set aside to pay that high deductible. Otherwise, you risk not being able to cover your portion when you do need to file a claim.
Learn More: Selecting a Home Insurance Deductible
How location affects home insurance rates in New Jersey
Where you live (down to the ZIP code) can affect how much you spend on homeowners insurance thanks to location-specific factors, like being close to a fire station, crime rates, or how much risk you face from natural disasters. For example, in New Jersey, damage from extreme weather events, like hurricanes and windstorms, can affect insurance prices.
This table shows how location can affect home insurance rates for New Jersey residents:
|City||Average Monthly Quote|
What are the cheapest home insurance companies in New Jersey?
Stillwater ($90), SageSure ($97), and Plymouth Rock ($122) are the three insurance providers in New Jersey that offer the cheapest average monthly quotes. All three of these rates are much cheaper than the New Jersey state average cost for homeowners insurance ($144). It’s worth noting that your specific coverage needs may result in a more expensive quote.
This table highlights the 10 most affordable home insurance companies in New Jersey.
|Insurance Company||Average Monthly Quote|
|Midvale Home & Auto||$157|
How much homeowners insurance do you need in New Jersey?
While homeowners insurance isn’t required by law, mortgage lenders usually require their borrowers to have coverage. The amount of coverage you need depends on many different factors and your unique risk tolerance. You should understand your coverage needs before you buy a policy so you don’t overspend on coverage you won’t get any use out of.
That being said, all standard homeowners insurance policies come with several standard components that you should be aware of.
Learn More: How Much Homeowners Insurance Do I Need?
What home insurance coverages should you buy in New Jersey?
If you own a home in New Jersey, you need to have four basic types of homeowners insurance coverage.
Personal belongings: You’ll want to protect the belongings inside your home that can be stolen, lost, or destroyed by a covered peril.
Structure of the home: You’ll need to purchase enough structure coverage to rebuild your home if part or all of it is destroyed.
Liability protection: Liability protection can step in to provide support in the event of a lawsuit after bodily injury occurs on your property or the policyholder or one of their family members causes property damage.
Additional living expenses: If damage to the home makes it unlivable during repairs, additional living expenses coverage can help pay for costs related to living elsewhere, such as a hotel.
What optional home insurance coverages should you buy in New Jersey?
Here are some optional types of home insurance coverage that can be helpful to buy in New Jersey.
Earthquake coverage: Earthquakes can occur in New Jersey, but standard homeowners insurance policies don’t cover this type of damage. Because of this, purchasing earthquake insurance can be a good idea. You can purchase earthquake insurance through private insurance providers. Deductibles tend to cost 2% to 20% of the replacement value of the house.
Flood insurance: Because New Jersey can fall victim to hurricanes, there’s a chance residents may experience flood damage after a hurricane. That being said, floods can happen anywhere, so flood insurance is a great optional coverage to buy in New Jersey or other states. It’s possible to buy flood insurance through an insurance company that partners with the National Flood Insurance Program.
How much home insurance coverage should you have in New Jersey?
When buying home insurance, every homeowner needs to purchase a policy that’s unique to their needs and risk tolerance. It’s generally a good idea to get at least three different quotes from homeowners insurance providers before choosing a policy. The value of your home, its location, and the cost of construction materials are all factors that can influence how much coverage you need and which policy is right for you.
What are some of the biggest risks when owning a home in New Jersey?
When you own a home in New Jersey, you need to be aware of:
Hurricanes: Hurricanes can cause major damage, but luckily a standard homeowner’s policy covers hurricane damage. Hurricane Sandy caused $36.8 billion worth of damage in New Jersey alone.
Fires: More than 50 homes were destroyed by a 2022 wildfire in New Jersey, so it’s a good thing that a standard insurance policy covers fire damage.
Theft: In 2020, there were 12,983 burglaries in New Jersey. Fortunately, theft is covered by a standard homeowners insurance policy.
See Also: Is Hazard Insurance Required? Hazard Insurance Cost, Quotes
How can you save money on homeowners insurance in New Jersey?
You can take many different steps to lower your home insurance costs in New Jersey, such as:
Many insurers will offer you a better rate if you purchase multiple insurance coverages. This is called bundling, and getting your home and auto insurance from the same insurer, for example, will often get you a better rate on both coverages.
Increase your deductible
You can significantly reduce your premium by increasing your deductible because you’re then taking on more risk. However, you need to make sure you have the financial resources to pay more out of pocket if you suffer a loss. Raising a deductible from $1,000 to $2,000 can reduce your premium by as much as 25%.
Prepare your home
Getting ready for a disaster can actually help you save on your homeowners insurance costs, according to Mark Friedlander, director of corporate communications at the Insurance Information Institute.
“Check with your insurance agent or company representative on what steps you can take to make your home more resistant to windstorms and other natural disasters,” Friedlander says. “For example, you may be able to save on your premium by adding storm shutters, reinforcing your roof, or buying stronger roofing materials.”
Seek out discounts
Check with your agent or insurance representative about other common home insurance discounts you may qualify for, including:
New home construction
Installing a new roof
Upgrading electrical, HVAC, and plumbing systems in an older home
Claims-free (time frame varies from three to 10 years, depending on your insurer)
Living in a gated community
Active-duty military or veteran
Senior citizen or retiree
Member of a professional association or alumni group
“The cost of insurance can vary greatly by insurer, so it pays to shop around and get multiple quotes from a mix of national and regional insurers,” Friedlander explains. “You can obtain quotes through online tools or work with a local independent or exclusive agent. It is important to select an insurer that is financially strong (carries an A rating) and can pay its claims in the event of a catastrophic event, such as a hurricane.”
Average home replacement cost in New Jersey
Ideally, you’ll have enough insurance coverage to pay for the replacement cost of your home. The replacement cost is how much it would cost to reconstruct your home today using the same types of building materials that your home was originally built with.
The following table examines the average rebuild cost of homes in a handful of New Jersey cities.
|City||Average Home Value|
New Jersey home insurance FAQs
Here are answers to some commonly asked questions about home insurance in New Jersey.
The average monthly cost of home insurance in New Jersey is $144, but you may spend more or less depending on your unique needs.
While homeowners insurance costs $1,728 per year in New Jersey, the average national cost is lower, at $1,272 per year. The reason New Jersey home insurance costs more than the national average may be due to an increased risk of severe weather events, like hurricanes.
You can choose from three main types of homeowners insurance: an actual cash value policy (replaces belongings and structure of the home minus a deduction for depreciation), a replacement cost policy (the cost of rebuilding or replacing without any depreciation deductions), and a guaranteed/extended replacement cost policy (pays full cost to rebuild your home or replace belongings even if that amount surpasses the policy limit).
Having homeowners insurance isn’t a legal requirement, but your mortgage lender will usually require it. Even if you own your home outright, you should still buy homeowners insurance to protect your home and belongings — as well as yourself — when it comes to liability.
Stillwater ($90 per month) and SageSure ($97 per month) offer the lowest homeowners insurance rates in New Jersey. Those looking to buy their auto and home insurance in one place will appreciate that Stillwater offers both policy types. SageSure is a good fit for someone who wants straightforward coverage. It only offers an HO-3 policy but offers the second-lowest average monthly price out of the companies Insurify reviewed for this basic amount of coverage.
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- J.D. Power. "Bundle Fumble? Rising Auto Insurance Premiums are Killing Home Bundles, J.D. Power Finds." Accessed February 13, 2023
- Insurance Information Institute. "Background on: Earthquake insurance and risk." Accessed February 14, 2023
- NJ.gov. "Crime Data." Accessed February 14, 2023