How Much Is Home Insurance In New Jersey? 2025
The average cost is $1,200 per year, with factors like location, home age, claims history, and credit score all affecting your premium. This guide breaks down what affects rates, how top insurers compare, and how to find the best deal for your needs.
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Home insurance rates are on the rise. In 2023, homeowners in New Jersey saw a 4.5% rise in their home insurance premiums, as insurance rates increased nationwide due to climate change. Not only this, but since 2018, home insurance costs in New Jersey have gone up more than 15%, according to a CNBC report.
With such significant rate hikes, it’s essential to find a reliable insurance provider. With 20 years of experience in the insurance industry, I can assist you in choosing a great insurance company. Here’s all the information you need about home insurance prices in New Jersey.
Key Takeaways
In 2024, the average yearly cost of homeowners insurance in New Jersey was $1,200.
Some of the top insurance providers in the state include USAA, Allstate, Travelers, State Farm, and NJM.
Insurance rates can differ based on several factors, such as the insurer, your location, claim history, credit score, coverage level, and the age of your home.
The best way to find out your home insurance cost is to request quotes from different companies.
How Much Is Homeowners Insurance In New Jersey?
In 2024, the average cost of homeowners insurance in New Jersey was $1,200 annually. Insurance rates differ between providers and are influenced by factors like climate change, inflation, and more. Homeowners in New Jersey will find that the state’s average insurance rate is lower than the national average of $2,179 for $300,000 in dwelling coverage.
Average Home Insurance Cost In New Jersey- By Insurance Carrier
The cost of homeowners insurance in New Jerseys varies widely based on different factors. Your insurance provider will weigh these factors differently. This is a reason why insurance rates differ among different carriers.
For example, Chubb and NJS offer affordable rates, while The Hanover is comparatively more expensive.
| Insurance Carrier | Average Annual Premium |
| Chubb | $869 |
| New Jersey Skylands | $850 |
| State Farm | $1,121 |
| Farmers | $1,095 |
| USAA | $1,206 |
| Narragansett Bay Insurance Company | $1,187 |
| The Hanover | $1,735 |
| ASI | $1,537 |
Note: Comparing quotes from multiple insurance companies is key. By doing this, you can identify the best coverage options at the most affordable prices.
Average Home Insurance Cost In New Jersey – By Claims History
Insurance companies see a history of frequent claims as a major warning sign. Claims for theft or water damage, in particular, can greatly affect your policy rates. Even a single claim in the last five years can raise your premium by 25%.
| Number of Claims | Average Annual Premium |
| None | $1,200 |
| 1 | $1,511 |
| 2 | $1,763 |
Note: Insurance companies may view frequent claims as a higher risk, which could result in even higher premiums or difficulty renewing your policy.
Average Home Insurance Cost In New Jersey – By Credit Score
Some states don’t consider credit score when setting insurance rates, however, that’s not the case in New Jersey. Homeowners with a low credit score are seen as more likely to file insurance claims compared to those with a high credit score. The fewer claims you file, the lower your insurance rates are likely to be.
| Credit Score | Annual Average Premium |
| Poor (300-579) | $2,322 |
| Fair (580-669) | $1,823 |
| Good (670-739) | $1,492 |
| Very Good (740-799) | $1,200 |
| Excellent (800-850) | $927 |
Average Home Insurance Cost For New Homes In New Jersey
Insurance for new homes is generally less expensive than for older homes. This is because new homes are less likely to have problems, such as outdated electrical systems or hard-to-find materials.
The average cost of home insurance for a New Jersey property built in 2024 is $752 annually.
| Age of Home | Average Annual Premium |
| New | $752 |
| 10 | $1,200 |
| 20 | $1,527 |
| 30 | $2,101 |
Average Home Insurance Cost In New Jersey- By Coverage Amount
The cost of home insurance in New Jersey varies based on the coverage amount you choose. Generally, the higher the coverage amount, the more expensive your premium will be. For example, if you select a policy with lower coverage, such as $100,000, your premium will be lower compared to a policy with a higher coverage amount like $300,000 or $400,000.
| Coverage Limit | Average Annual Premium |
| $100,000 | $651 |
| $250,000 | $1,200 |
| $500,000 | $1,921 |
| $750,000 | $2,643 |
| $1,000,000 | $3,267 |
| $2,000,000 | $5,112 |
| $3,000,000 | $12,457 |
Note: It’s important to have sufficient insurance to fully rebuild your home and replace personal belongings if your home is completely destroyed.
Average Home Insurance Cost For Different Cities In New Jersey
The average cost of home insurance in New Jersey can differ from one city to another due to factors such as population density, home values, and local risks like flooding or natural disasters. Cities with older homes or higher risks tend to have higher premiums, while areas with lower risks or more affordable homes generally have lower insurance costs.
| City | Average Annual Premium |
| Newark | $1,387 |
| Elizabeth | $1,194 |
| Paterson | $1,223 |
| Jersey City | $1,276 |
| Long Valley | $933 |
| Chester | $934 |
| New Vernon | $945 |
How To Estimate Your Homeowners Insurance Policy Cost
Finding reliable home insurance in New Jersey can be tricky. The state has its own set of challenges for homeowners and insurers. While it can feel overwhelming, understanding these challenges is the first step in getting the right coverage. Here are some key factors that insurance companies use to set your premium:
Location: The location of your home is one of the most important factors insurers use to set your premium. If you live in an area that’s at high risk for natural disasters like hurricanes, tornadoes, or wildfires, your insurance will likely cost more, as these areas present a higher risk to insurers.
Your policy deductible: The amount of your policy deductible also affects your premium. Your deductible is the amount you must pay out of pocket before your insurance kicks in to cover a claim. In simple terms, the higher your deductible, the lower your insurance premium will be.
The condition of your roof: The age and condition of your roof can have a big impact on your home insurance cost. A newer roof is more likely to protect your home from weather-related damage than an older one. Insurers may offer discounts if your roof is relatively new or made with stronger materials.
Age and condition of your home: Older homes may be seen as a higher risk for costly repairs or damage from severe weather. The overall age and condition of your home can influence your rates, and some insurers may offer discounts for homes with updated features like a new roof.
Credit Score: Many insurance companies use your credit score to help determine your premium. Homeowners with a higher credit score typically pay lower insurance rates.
How To Buy Home Insurance In New Jersey
To begin the process of buying home insurance in New Jersey, consumers should follow the steps outlined below.
Decide on the Coverage You Need: Figure out how much coverage you need for your home and personal belongings. This includes coverage to rebuild your home and replace your possessions if they are damaged or stolen.
Assess Your Home’s Features: The size, age, condition, and location of your home all play a role in the cost. Homes that are older or in areas prone to risks, like floods or storms, are usually more expensive to insure.
Choose Your Deductible: The deductible is the amount you pay out of pocket before insurance kicks in. A higher deductible usually means lower premiums, but you’ll have to pay more if you file a claim.
Look for Discounts: Many insurance companies offer discounts, such as for having a security system, bundling with auto insurance, or having no claims history.
Get Quotes from Multiple Insurers: Reach out to several insurance companies to compare rates based on your home’s details. Different providers may offer different prices and coverage options.
- Sign Application: Once you’ve selected the home insurance policy that fits your needs, the next step is to complete and sign the application. This formalizes your agreement with the insurance company and allows them to begin processing your coverage.
- Review Policies: Before signing the application, it’s essential to thoroughly review the details of your policy. This ensures that you fully understand what is covered and any areas that may require additional coverage.
Note: You can often save money by bundling, such as home and auto insurance policies. Some insurers offer multi-policy discounts, which can reduce your total premium, depending on the provider. Bundling also makes it easier to manage your policies, pay premiums, and file claims.. Be sure to ask about bundling options when comparing quotes to maximize your potential savings.
FAQs
Why is homeowners insurance in New Jersey so expensive?
Homeowners insurance in New Jersey is expensive due to factors like the risk of natural disasters (flooding, storms), high property values, and the cost of rebuilding in certain areas. Overall, rates are still less than the national average.
How much is homeowners insurance per month in New Jersey?
On average, homeowners insurance in New Jersey costs about $100 to $125 per month, depending on coverage and factors like home location and condition.
FAQ: How can first-time home buyers save money on homeowners insurance?
First-time home buyers can often reduce their insurance costs by understanding the basics of coverage, comparing quotes, and taking advantage of discounts like bundling home and auto policies. Our guide, 5 Home Insurance Tips For First-Time Home Buyers, walks you through key ways to protect your new home and potentially save hundreds of dollars per year.
Sources
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- New Jersey Gov – Insuring Your Home
- New Jersey – Insurance Companies Are Hiking Costs
- Patch – Home Insurance Rates Spike Nationwide: See Impacts In NJ
