Best Homeowners Insurance In New Jersey For April, 2024

State Farm provides the best overall home insurance in New Jersey.

min read
Updated: 12 March 2024
Written by
Bob Phillips
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If you own a home in New Jersey, it’s important to be prepared for extreme weather and protect your property with the right home insurance.

From my research and personal experience, State Farm stands out as one of the best home insurance companies in New Jersey. However, I recommend exploring other insurers as well to make an informed decision.

Best Home Insurance Companies In New Jersey, 2024

Best Home Insurance, New Jersey, 2024

Compare The Best Home Insurance In New Jersey

Overall Rating Best For A.M Best Rating J.D Power Rating Online Experience Get A Quote
State Farm
4.9

Best Overall

A++

829

9/10

Instant Quote
Farmers
4.4

Policy Perks

A

792

9/10

Instant Quote
Chubb
4.8

Cheap Rates

A++

809

7/10

Instant Quote
Nationwide
4.6

Best Coverage Options

A+

815

9/10

Instant Quote
Allstate
4.7

Discounts

A+

816

8/10

Instant Quote
Scroll to see comparisons

Our Methodology

When determining the best home insurers in the state of New Jersey, we based our ratings on unbiased data from services like AM Best (financial strength) along with J.D. Power (customer satisfaction). We also weighed good and bad feedback from an assortment of consumer websites and our own personal experience.

58

Quotes Analyzed

17

Brands Reviewed

15+

Years Of Experience

30+

Research Hours

The Best Home Insurance Companies In New Jersey


Best Overall

Overall Rating
4.9

Key Statistics

8/10 Affordability
8/10 Customer Reviews
9/10 Claims
9/10 Coverage Level

Why We Like Them

AM Best has given State Farm its highest rating, A++, for financial strength. However, the company has received lower ratings for customer satisfaction, as evidenced by numerous negative online reviews from policyholders. Despite this, State Farm has a strong agent presence in the state and many local offices.

State Farm’s standard homeowners insurance policy offers coverage that is not typically provided by many other insurers. This includes reimbursement for costs related to complying with laws or ordinances, as well as protection against credit card fraud and other losses.

For those looking for more personalized options, State Farm offers unique features such as Better Roof Replacement. This coverage pays for upgraded materials if you need to replace your roof due to a qualified event like a storm.

Another distinctive option is Brand New Belongings, which reimburses you for the replacement cost of your belongings. If your items are destroyed or damaged, you will receive the depreciated value of your items. Simply submit your receipts to State Farm after purchasing replacements, and they will reimburse you for the price difference.

Benefits & Drawbacks

Benefits
  • Strong AM Best rating
  • Many high quality options for coverage
  • Numerous offices and agents for service and sales
Drawbacks
  • Not that many discounts
  • Damages incurred from floods is not included with their standard home insurance policy

Best For Policy Perks

Overall Rating
4.4

Key Statistics

8/10 Affordability
8/10 Customer Reviews
9/10 Claims
9/10 Coverage Level

Why We Like Them

Farmers insurance stands out not only for its high ranking in perks but also for its excellent “online experience,” which is attributed to how well it explains these perks and the discounts available to potential or current policyholders. Some of the key home insurance perks offered by Farmers include:

  • Extended Dwelling Coverage: Provides additional insurance for the structure of your house.
  • Higher Replacement Costs: Farmers pays a higher replacement cost for your personal property or belongings.
  • No Banned Dog List: Unlike many other home insurance companies, Farmers does not have a banned dog list.
  • Liability Insurance: Covers injuries and property damage to others.
  • Additional Living Expense Coverage: Pays for extra costs like restaurant meals and hotel bills if you’re unable to live in your home due to a covered problem, such as a tornado or fire.
  • Identity Shield: Provides credit monitoring services and identity theft protection services.

Farmers’ overall score of 4.4/5 reflects its AM Best rating of A, which is considered very good overall.

Benefits & Drawbacks

Benefits
  • Many Farmers agents in New Jersey
  • Extra living expense coverage
  • ID theft and fraud coverage
Drawbacks
  • Rates are a little higher than some other insurers

Best For Cheapest Coverage

Overall Rating
4.8

Key Statistics

10/10 Affordability
9/10 Customer Reviews
9/10 Claims
10/10 Coverage Level

Why We Like Them

Chubb offers affordable homeowners insurance in New Jersey, with an average policy cost of $1,045 per year, which is lower than the national average of $1,820. Despite its lower cost, Chubb does not compromise on coverage quality.

Their home insurance policies are tailored for higher value homes, and the company is known for its financial strength, stability, and excellent customer service. Choosing Chubb as your home insurance carrier can provide you with low premiums and extended replacement coverage, allowing you to replace or repair your belongings even if their current value is less than what you originally paid for them.

Benefits & Drawbacks

Benefits
  • Earns highest financial strength rating available
  • Competitive premiums
  • Has the highest number of local agents in New Jersey
Drawbacks
  • Policy quotes are not usually available online

Best Coverage Options

Overall Rating
4.6

Key Statistics

8/10 Affordability
6/10 Customer Reviews
9/10 Claims
9/10 Coverage Level

Why We Like Them

Nationwide is rated A+ (Superior) by AM Best for its strong financial stability. While it receives some negative online reviews from policyholders, it has a significant presence in Louisiana with multiple agents and neighborhood offices.

A Nationwide homeowners policy offers coverage options that are not commonly provided by other insurers. This includes reimbursement for losses such as credit card fraud, as well as ordinance or law coverage for rebuilding to comply with stricter codes.

Better Roof Replacement is an excellent option for upgrading your roof materials if they need replacement due to events like an ice storm, tornado, or hail.

Brand New Belongings is another valuable option, providing replacement cost coverage for your valuables and belongings. If your items are destroyed or damaged, you’ll be reimbursed for their depreciated values. Simply purchase replacements, send Nationwide the receipts, and receive reimbursement for the cost difference.

Benefits & Drawbacks

Benefits
  • Many high-quality options for coverage
  • Very high AM Best rating in financial security
  • Multiple local agents and offices for service, claims and sales
Drawbacks
  • Multiple negative online customer reviews
  • No coverage for short term rental such as Airbnb

Best For Discounts

Overall Rating
4.7

Key Statistics

8/10 Affordability
7/10 Customer Reviews
9/10 Claims
10/10 Coverage Level

Why We Like Them

Allstate offers an impressive total of eleven insurance discounts for homeowners, which is higher than the national average of seven. Many home insurance analysts, myself included, find that Allstate’s discounts are unique and beneficial for policyholders.

Some of Allstate’s discounts include:

  • Bundle: Save up to 25% when you bundle your car and home insurance
  • Claims Free: Receive a five percent discount upon renewal if you haven’t had any claims in a year
  • Deductible Reward: Get $100 off your deductible when you sign up
  • Early Payment: Save up to 10% if you purchase a new policy at least a week before the expiration of your old one
  • Automatic Payment: Save up to 5% by choosing auto-pay and having your premium deducted automatically from your bank account
  • Loyalty: Renew with Allstate and save up to ten percent
  • Home Buyer: Discount for those who have recently bought a home
  • New Home: Receive a discount if you insure a newly built home
  • Responsible Payment: A good payment history nets you a discount on your premium
  • Protective Device: Install fire and theft protection, and get a discount
  • Claims Forgiveness: Additional coverage that prevents your rate from going up if you file a claim

Allstate also offers nine optional coverage types for home insurance, nearly double the national average. In addition to standard options like scheduled personal property and identity theft, Allstate provides unique homeowners coverage for those with yards and gardens. This coverage increases limits to replace items such as landscaping and riding lawn mowers.

Benefits & Drawbacks

Benefits
  • Large number of options
  • Numerous agents, offices, and claims adjusters in the state
  • Respectable number of discounts available
Drawbacks
  • Rates can be a little higher than the national average

How To Find The Best Home Insurance Company For You

To find the best home insurance company in New Jersey, you’ll need to invest some time and effort. However, this investment is worthwhile, as your home is likely your most valuable asset. Safeguarding it, along with your personal property, is crucial for your family’s long-term financial security.

Here are five steps to help you find the best policy for your needs:

  1. Conduct online research to identify home insurance carriers in New Jersey, then narrow down your choices to three carriers.
  2. Determine the coverage limits you need, which may require a discussion with an agent.
  3. Obtain quotes for the coverage from your three chosen insurers.
  4. Choose a home insurance company based on customer reviews, coverage, rates, and financial strength.
  5. Complete your application for insurance.

Many insurance companies offer online options for getting quotes and completing applications, but some may require you to speak with an agent.

Average Cost Of Home Insurance In New Jersey

Insurer Annual Rate
 State Farm $1,279
Chubb $1,276
Allstate $1,026
New Jersey Average Rate $1,367
USAA $1,463
Farmers $2,567

Cheapest Cities For Homeowners Insurance In New Jersey

City Annual Rate
Clifton $897
Camden $984
Trenton $968
Bayonne $905
Elizabeth $945

Most Expensive Cities For Homeowners Insurance In New Jersey

City Highest Rate
Bay Head $2,178
Beach Haven $2,367
Leeds Point $2,070
Atlantic City $2,372

Home Insurance Premiums By Deductible In New Jersey

Deductible Average Annual Rate
$500 $1,520
$1,000 $1,396
$1,500 $1,329
$2,000 $1,242
$5,000 $1,074

Home Insurance Prices By Coverage Level In New Jersey

Coverage Level Average Annual Rate
$100,000 Dwelling $410
$200,000 Dwelling $670
$250,000 Dwelling $786
$400,000 Dwelling $1,109

Factors That Impact Cost Of Your Home Insurance Policy In New Jersey

Several factors influence the cost of home insurance in New Jersey:

  1. Location: Homes in areas prone to extreme weather events, such as hail, tornadoes, or hurricanes, may have higher premiums.
  2. Age of the home: Homes over 30 years old typically have higher rates due to newer code restrictions, rebuilding costs, and building materials.
  3. Proximity to flood zones: Homes close to rivers or lakes may face increased flood-related claims.
  4. Claim history: Individuals with a history of filing homeowners claims may be charged higher rates.
  5. Deductibles and coverage amounts: Higher home values and lower deductibles can lead to higher premiums. Increasing your deductible can help lower your insurance costs.

New Jersey Home Insurance Laws To Know

New Jersey law requires insurers to charge rates that are reasonable, fair, and that are adequate for the risks covered. This state doesn’t require homeowners insurance by law. However, if you have a mortgage on your home, it’s likely that the lender will require it.

Home Insurance Discounts In New Jersey

When looking for home insurance discounts in New Jersey, consider the following:

  1. Early Payment: Some insurers offer a discount if you purchase a new policy at least one week before your old policy expires.
  2. Bundle: You can often save up to 25% by bundling your home and auto insurance policies with the same insurer.
  3. Claims Free: Many carriers offer discounts if you don’t file any claims within a year.
  4. Automatic Payment: Enrolling in auto-pay and having your premium deducted automatically from your bank account can result in a discount.
  5. Responsible Payment: Maintaining a good payment history may qualify you for a discount.
  6. New Home: Constructing a new home could make you eligible for a discount on your home insurance.

The Most Affordable Areas For Homeowners Insurance In New Jersey

Homeowners insurance rates in New Jersey may vary to some extent by zip code. Typical rates have a range of $697 in zip code 07839, the Greendell zip code, to $1751 in Camden’s zip code of 08101. The least expensive rates by zip code in New Jersey are:

ZIP Code City Lowest Rate
7839 Greendell $1,442
7859 Millville $1,427
7855 Cranbury $1,103
8540 Princeton $1,078

FAQs

Is home insurance more expensive in New Jersey?

No, the fact is that homeowners insurance in New Jersey is cheaper than the average rates for most of the nation. At just $1,367 a year, New Jersey’s home insurance is much less than the national average of $1,820 a year. These figures are based on a homeowner with $300,000 of coverage on a dwelling, another $300,000 of liability insurance coverage, a middle ground $1,000 deductible and who has good credit.

How much per month is a million-dollar home insurance policy in New Jersey?

Rates will vary by insurer, but two carriers with the lowest home insurance rates in New Jersey are State Farm at $1,279 a year and Allstate at $1,026 a year.

What is the average monthly cost of home insurance in New Jersey?

That will depend on the home’s value, but $250,000 in dwelling coverage will average around $1,552 a year.

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