The state of New Jersey is home to nearly 9 million people, and 64 percent of those people own a home. The homeownership rate in New Jersey is only marginally higher than the U.S. national average rate of 63.9 percent.
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.
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. Allstate also provides personal liability coverage. The company also boasts an A+ financial strength rating from AM 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 theadditional costs associated with using energy-efficient goods and materials to replace damaged items.
A New Jersey homeowners insurance policy from Allstate is affordable, and the company also offers discounts to lower your costs even more. Standard discounts from Allstate include up to 30 percent for policy bundling, 25 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. 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 19,000 agents, which can be helpful if you need to reach an agent quickly.
State Farm provides a number of helpful tools and resources, including home inventory templates, 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 18 consecutive years.
If 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 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. 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, Chubb provides prompt responses 24/7 to address your needs and work toward a settlement. Through the company’s network of preferred providers, you can get connected 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 AM Best (A++) and a good rating from J.D. Power for its excellent claims process.
How much is homeowners insurance in New Jersey?
New Jersey’s average home insurance premium was $1,192 per year in 2017, the latest year we have aggregate data. However, you might pay more or less than the statewide average. Home insurance rates are personalized, and factors like your city, age, credit score and the age of your home all contribute to your premium.
Most expensive and cheapest regions in New Jersey for homeowners insurance
As we mentioned, home insurance costs can vary significantly by city.
Cities that have higher crime rates or larger population numbers, like Jersey City, Newark and Asbury Park are likely to be among the most expensive. Cities like these are also more expensive because they are along or near the coastline. That means homes in those cities are at a higher risk of hurricane damage and flooding than homes located inland. Additionally, homes in those areas tend to be expensive, and therefore are more costly to insure.
In comparison, other cities like Clifton, Passaic and Hoboken have factors that make them less expensive. Cheaper cities tend to be located more inland, where there is less risk of storm-related damage. Also, less expensive places for home insurance often have a lower cost of living and lower home prices.
New Jersey rate factors
Hurricanes, blizzards and freezing rainstorms are the most frequent natural disasters in New Jersey. In October 2012, the state was famously walloped by Superstorm Sandy, which caused an estimated $30 billion in damage. Even today, New Jersey continues to recover from that hurricane.
To protect your home from hurricane-related damages, make sure you have enough dwelling and personal property coverage. New Jersey homeowners should also purchase flood insurance because flood damage is not covered by homeowners insurance. Flood insurance policies are sold through most private insurance companies, as well as the National Flood Insurance Program.
Additionally, New Jersey is one of 19 states that has 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.
Although hurricane-related damages (besides flooding) will be covered by your home insurance policy, it will cost you some money out-of-pocket.
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.
