We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence. The offers that appear on this site are from companies from which TheSimpleDollar.com receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. The Simple Dollar does not include all card/financial services companies or all card/financial services offers available in the marketplace. The Simple Dollar has partnerships with issuers including, but not limited to, Capital One, Chase & Discover. View our full advertiser disclosure to learn more.
The Best Homeowners Insurance Companies in New Jersey
Home insurance in New Jersey isn’t the cheapest in the country, but it’s essential to have coverage. The devastation wrought in New Jersey by the 2012 hurricane known as “Superstorm Sandy” stressed the importance of having a comprehensive homeowners insurance policy. In this article, we’re sharing our list of the best New Jersey homeowners insurance companies.
The best homeowners insurance in New Jersey
- Best Overall: Amica Mutual
- Best Coverage Add-ons: Allstate
- Most Affordable: NJM Insurance
- Best Claims Processing: State Farm
- Best Policy Management: Plymouth Rock Assurance
Choosing your provider
Before selecting your home insurance provider in New Jersey, you’ll need to conduct thorough research on both national and local carriers. While nationwide carriers might offer a wider range of coverage options, local and regional providers may have policies that are better tailored to your specific location. In some cases, the policy you find from a local or regional provider may even be less expensive than carriers that offer products nationwide.
- Can be less expensive than national providers.
- Offers coverage options that are specific to your area.
- Build a personal relationship with your insurance agent.
- May not always have the coverage options you need for your home.
- May not have as many available discounts for you to take advantage of.
- Offers a broader range of coverage options.
- Provides many discounts for homeowners.
- Offers online, mobile and 24/7 tools for customers.
- Less personal customer service.
- May pay more for coverage options specific to your region.
New Jersey’s minimum insurance requirements
Any person that owns a home in New Jersey and finances the home through a lender is required to possess a homeowners’ insurance policy. Some lenders may only require the homeowner to seek coverage for the mortgage amount. If you’re seeking replacement cost coverage, your lender might require you to insure your home for a set limit.
The amount of insurance required in New Jersey is based on your property’s value, and homeowners also need to ensure they have enough personal liability coverage to protect them from claims that others may file against them.
The average annual rainfall in New Jersey is 46 inches — a whopping 1’2” more than the U.S. national average. All that water has to go somewhere, and it might just be your basement. That’s why it’s a great idea for New Jersey residents to consider adding flood insurance to their policies. Most standard policies do not include flood coverage, so it’s important to find a carrier that offers this as an add-on when researching the best home insurance provider for your New Jersey home.
When people think of hurricane season, they typically think of Florida, Louisiana, or Texas as the nation’s hotspots. But New Jersey experiences a pretty active hurricane season as well. In fact, 2020 was a record-setting year for hurricanes in the state, and these numbers are only expected to increase, according to Colorado State University’s Department of Atmospheric Science.
That said, hurricane coverage is a worthwhile investment — especially if your Jersey home happens to be along the coastline. Be sure to find a provider that offers hurricane coverage as an add-on to their available policies.
How much does home insurance cost in New Jersey?
The cost of home insurance in New Jersey is as average as they come. According to the Insurance Information Institute, the average annual premium for homeowners’ insurance in New Jersey is $1,192 — just $19 below the national average. However, homeowners can expect to pay more or less depending on the following:
- Property Value
- Replacement Cost
- Age of Home
- Roof Condition
- Claims History
- Credit History
- Proximity to Body of Water
Even the type of dog you have, whether or not your home has a swimming pool and your marital status can factor into your final rate. One of the easiest ways to decrease your premium is by increasing your deductible. Even a small increase from $500 to $1,000 can help you save as much as 25% on your insurance premium.
For more information regarding coverage and policy options for your home, check out our Guide to Home Insurance.
We welcome your feedback on this article and would love to hear about your experience with the insurers we recommend. Contact us at email@example.com with comments or questions.