The devastation wrought in New Jersey by the 2012 hurricane known as “Superstorm Sandy” stressed the importance of having a comprehensive homeowners insurance policy.
Although the average annual homeowners insurance premium in the Garden State is only $711, according to Insurance.com 42 percent lower than the national average of $1,228, geographic location creates huge disparities in coverage and pricing options statewide. The provider you choose is another key determinant in how much you’ll pay for your policy and how well you’ll be covered if disaster does strike.
The hurricane deductible is a key factor to consider for home insurance consumers in New Jersey. Be sure to check the details for the hurricane deductible of individual insurers as you shop for New Jersey homeowners insurance. Those details will determine how much cost you’re responsible for before your insurance coverage takes over in the event of hurricane damage.
According to the Insurance Information Institute New Jersey is one of 19 states that have a hurricane deductible based on a percentage of the insured value of the home instead of a flat dollar amount. For example, if a house is insured for $300,000 and has a 5 percent deductible, the first $15,000 of a claim must be paid by the policyholder.
Your home is your most valuable asset and finding an insurance company that works with your budget and gives you peace of mind is no easy task. To assist in your search, we’ve outlined our top picks for New Jersey homeowners insurance and included a quote tool below so you can start shopping around and comparing prices before making your final decision.
Our Top Picks for Best Homeowners Insurance in New Jersey
- Allstate
- State Farm
- Amica Mutual
- Chubb
Allstate
Allstate extends coverage to New Jersey residents who live in just about any type of standard dwelling — be it a single-family house, a condo or a mobile home. An Allstate policy protects your physical home, other structures on your property and your personal belongings, and it provides personal liability coverage as well. The company also boasts an A+ financial strength rating from A.M. Best, making it a strong pick.
Add-on coverage options from Allstate include a separate flood insurance policy — flood damage is usually not covered in a standard homeowners policy — as well as extra protection for valuables like expensive sports equipment, musical instruments, electronic data or business property. Allstate also offers a green improvement reimbursement option, which can help cover the additional costs associated with using energy-efficient goods and materials to replace damaged items.
Not only is a New Jersey homeowners insurance policy from Allstate affordable, the company also offers plenty of discounts to lower your costs even more. Standard discounts from Allstate include up to 30 percent for policy bundling, 20 percent for being claim-free, and 10 percent for insuring a new or recently renovated home.
Other price breaks to take advantage of include Allstate’s welcome discount, which will save you an additional 10 percent, and 5 percent off for signing up for automated payments.
Another great feature of Allstate is its comprehensive online resource center. Use its Premium Gauge tool to see how security features such as alarms affect the price of your annual premium, and the Digital Locker tool to keep a running inventory of your personal belongings and their value. These resources can save you money and expedite the claims process in the event of a loss.
State Farm
State Farm is the largest provider of homeowners insurance coverage in the U.S. and is a popular choice for New Jersey residents because of its broad range of coverage options and quality claims-management services. State Farm extends standard coverage for multiple dwelling types.
A homeowners insurance policy from State Farm protects against any damage to your dwelling due to theft or the elements, but it does not cover bodily injury. In order to receive this coverage, you must add it to your policy. State Farm offers a host of other add-on options to customize your policy, including flood protection, home business insurance, and identity restoration coverage.
Filing a claim with State Farm is a hassle-free process that can be completed either in person with a local agent, online, or by calling the 24-hour phone claims center. State Farm’s mobile app and online resource center offer organizational tools to help you respond more efficiently after you experience a covered loss. State Farm has a network of over 18,000 agents, which can be helpful if you need to reach an agent quickly.
The State Farm HomeIndex allows you to put together an inventory of your possessions and their value, which you can access online. State Farm’s Safety Learning Center also offers tips, articles and video tutorials on protecting your home and preventing future damage to your home.
Amica Mutual
Amica offers exceptional customer service and claims management, earning a “Highest in Customer Satisfaction” rating by J.D. Power for 13 consecutive years.
In the event that your home needs immediate repairs, Amica will connect you to local, reputable contractors to restore your home to a livable condition quickly and efficiently. Amica’s online Storm Center offers information on emergency planning to ensure the safety of your family and your home.
Amica’s low premium prices can be further reduced by taking advantage of the many discount options available. Common discounts include those for bundling policies, a history of not filing claims, and being in a new or recently renovated home. There are also discounts for installing protective devices, opting for paperless billing, setting up auto-pay and choosing a higher deductible.
Amica extends extra discounts to reward loyal customers who have sustained a policy with the company for a certain number of years, as well. You can also opt for up to $5,000 in coverage to protect against credit card fraud, and there is coverage to protect your electronics, such as computers and phones.
Chubb
Chubb offers affordable and customizable coverage for New Jersey homeowners. Its Masterpiece Home and Contents policy offers broader protection than many of its competitors. Prominent components of this policy include:
- Extended replacement cost coverage, which pays to have your home repaired or rebuilt.
- Cash settlement in the event of a covered total loss.
- Complimentary home appraisal service.
- Additional living expenses coverage to provide temporary residence if your home is unlivable after a covered loss.
- Extra protection such as electronic data restoration and lock replacement, at no extra cost to you.
Chubb offers customers personalized support to prevent claims. Its HomeScanSM service, for example, uses infrared camera technology to detect hidden problems in your home so you can intervene before they pose a threat to your safety.
If a catastrophe does occur and a claim needs to be filed, Chubb provides prompt responses 24/7 to address your needs and work toward a settlement. The Chubb Masterpiece Protection Network then works to connect you with qualified contractors who specialize in areas like alarm system installation, water leak protection and home repair to ensure that your home and safety are restored.
If you haven’t heard of Chubb, don’t worry. It has superior financial strength rankings from A.M Best (A++) and a high rating from J.D. Power for its excellent claims process.
How much is homeowners insurance in New Jersey?
New Jersey’s average insurance premium is $711, which is $517 lower than the national average of $1,228. Cost will vary from city to city, however, depending on the rate factors, which are mentioned below.
New Jersey Rate Factors
Blizzards and freezing rainstorms are the most frequent natural disasters in New Jersey. In October 2012, the state was walloped by Superstorm Sandy, which caused an estimated $30 billion in damage. New Jersey continues to recover from that hurricane.
The 4 Best New Jersey Homeowners Insurance Companies
Recapping our top picks for home insurance in New Jersey:
- Allstate
- State Farm
- Amica Mutual
- Chubb
For more information regarding coverage and policy options for your home, check out our Guide to Home Insurance. Plus, see how your current provider stacks up against our top overall picks for the Best Home Insurance for 2019.
