dcsimg
Call our licensed agents toll free 844.855.0163
Go To Top

New Jersey homeowners insurance

By Posted : October 06, 2017

Home insurance: NJ

When shopping for New Jersey home insurance, you need to know how much coverage to buy, how to get the best price and what you can expect to pay. We’ll explain everything you need to know to do that. We outline average New Jersey homeowners insurance rates by coverage level, ZIP code and company. That means you can anticipate how much it will cost and won’t overpay for it. We also explain coverage for hazards that are common in the Garden State to ensure you have sufficient protection.

Let Insurance.com help you find affordable home insurance now.

Whether you’re a new homeowner buying insurance or you’re shopping your existing policy, it’s wise to know the home insurance basics about coverage. 

Home insurance: NJ rates by coverage level and deductible, ZIP code and company

  • Here we will provide information on:
  • Homeowners insurance: NJ rates for 75 coverage levels
  • What deductible and liability limits provide the cheapest New Jersey homeowners insurance?
  • New Jersey homeowners insurance rates by ZIP code
  • New Jersey home insurance rates by company
  • Who has the cheapest New Jersey home insurance?
  • Home insurance: New Jersey rates by company for six coverage levels
  • Best New Jersey home insurance companies
  • New Jersey home insurance FAQ

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

New Jersey is the tenth cheapest state for home insurance. Its average rate is $711. That’s $517 less than the national average of $1,228 for the coverage level of:

  • $200,000 dwelling coverage
  • $1,000 deductible
  • $100,000 liability

 

Here are the basic components of a home insurance policy that you decide the coverage amount for:

  • dwelling
  • liability
  • medical payments

The limits of your coverage for the following are typically a set percentage of your dwelling coverage limit as shown below:

  • other structures – 10 percent
  • personal property – 50 percent
  • loss of use – 20 percent

You will also need to select a deductible, which is the amount you pay before your insurance kicks in. For example, if your home has $3,500 worth of damage, and you have a $500 deductible, you  pay the first $500 out of pocket before your insurance coverage kicks in for the rest ($3,000).

Some deductibles are based on dollar amounts, such as $500 or $1,000. Others are based on a percentage of your home's value. If your home is insured for $200,000 and your deductible is 2 percent, you will owe $4,000 before insurance coverage pays out.

You  choose a home insurance deductible amount, which applies to claims for damage to your home or belongings, but not if you’re sued or a medical claim is filed by someone injured in your home. Typically, deductible amounts are $500, $1,000, $1,500, $2,000 and $2,500.

New Jersey homeowners insurance rates by ZIP code

ZIP codes in Atlantic City, Normandy Beach, South Seaville and Newark are among the most expensive places to insure a home in New Jersey. Insurance.com analyzed home insurance rates from major insurance companies for nearly every ZIP code in New Jersey.

For $200,000 dwelling coverage with a $1,000 deductible and $100,000 liability limits, the average rate of $1,431 in Atlantic City ZIP code 08405 is the highest in the state. Basking Ridge ZIP code 07920 is the cheapest at $485.

By entering your ZIP code in the search box at the top of the table below, you’ll see the average home insurance rate for that area, as well as the highest and lowest premium fielded from major insurers. This will give you an idea of how much you can save by comparing home insurance rates. For example, the highest rate ($2,324) for most Newark ZIP codes is $1,750 more than the lowest ($574). That means you can save nearly $1,800 just by comparing rates and shopping around. Rates shown are average yearly for $200,000 dwelling coverage with a $1,000 deductible and $100,000 liability limits.

 

When buying home insurance, you should insure your home based on its replacement cost. That’s the amount you need to rebuild it if damaged or destroyed, and not its market value, which is what you could sell your home for in its current condition. Replacement cost offers more protection because the cost of building a home often exceeds its market value.

When shopping for a policy, you will have to choose a “dwelling coverage” amount. You should select a dwelling coverage limit that best matches the cost to repair damage to your home or rebuild it completely at equal quality — at current prices. You can calculate your replacement cost by using online calculators or hiring an appraiser to give you a replacement cost valuation or by doing it yourself.

Homeowners insurance: New Jersey rates for 75 coverage levels

Here we show the average cost of New Jersey homeowners insurance for 75 coverage levels, based on a rate analysis by Insurance.com. Enter a dwelling coverage of $200,000, $300,000, $400,000, $500,000 or $600,000. You will see annual average rates based on five deductible amounts (from $500 to $2,500) for each liability limit of $100,000, $300,000 and $500,000.

Coverage levelAverage annual rate
$200,000 with $500 Deductible and $100,0000 Liability $779
$200,000 with $1,000 Deductible and $100,000 Liability $711
$200,000 with $1,500 Deductible and $100,000 Liability $681
$200,000 with $2,000 Deductible and $100,000 Liability $656
$200,000 with $2,500 Deductible and $100,000 Liability $642
$200,000 with $500 Deductible and $300,000 Liability $804
$200,000 with $1,000 Deductible and $300,000 Liability $737
$200,000 with $1,500 Deductible and $300,000 Liability $706
$200,000 with $2,000 Deductible and $300,000 Liability $681
$200,000 with $2,500 Deductible and $300,000 Liability $667
$200,000 with $500 Deductible and $500,000 Liability $821
$200,000 with $1,000 Deductible and $500,000 Liability $753
$200,000 with $1,500 Deductible and $500,000 Liability $723
$200,000 with $2,000 Deductible and $500,000 Liability $698
$200,000 with $2,500 Deductible and $500,000 Liability $683
$300,000 with $500 Deductible and $100,000 Liability $1,080
$300,000 with $1,000 Deductible and $100,000 Liability $984
$300,000 with $1,500 Deductible and $100,000 Liability $943
$300,000 with 2$,000 Deductible and $100,000 Liability $906
$300,000 with $2,500 Deductible and $100,000 Liability $891
$300,000 with $500 Deductible and $300,000 Liability $1,108
$300,000 with $1,000 Deductible and $300,000 Liability $1,012
$300,000 with $1,500 Deductible and $300,000 Liability $971
$300,000 with $2,000 Deductible and $300,000 Liability $933
$300,000 with $2,500 Deductible and $300,000 Liability $918
$300,000 with $500 Deductible and $500,000 Liability $1,127
$300,000 with $1,000 Deductible and $500,000 Liability $1,030
$300,000 with $1,500 Deductible and $500,000 Liability $989
$300,000 with $2,000 Deductible and $500,000 Liability $951
$300,000 with $2,500 Deductible and $500,000 Liability $936
$400,000 with $500 Deductible and $100,000 Liability $1,400
$400,000 with 1000 Deductible and $100,000 Liability $1,269
$400,000 with $1,500 Deductible and $100,000 Liability $1,217
$400,000 with 2000 Deductible and $100,000 Liability $1,170
$400,000 with $2,500 Deductible and $100,000 Liability $1,142
$400,000 with $500 Deductible and $300,000 Liability $1,430
$400,000 with $1,000 Deductible and $300,000 Liability $1,298
$400,000 with $1,500 Deductible and $300,000 Liability $1,246
$400,000 with $2,000 Deductible and $300,000 Liability $1,199
$400,000 with $2,500 Deductible and $300,000 Liability $1,171
$400,000 with $500 Deductible and $500,000 Liability $1,451
$400,000 with $1,000 Deductible and $500,000 Liability $1,319
$400,000 with $1,500 Deductible and $500,000 Liability $1,267
$400,000 with $2,000 Deductible and $500,000 Liability $1,219
$400,000 with $2,500 Deductible and $500,000 Liability $1,191
$500,000 with $500 Deductible and $100,000 Liability $1,734
$500,000 with $1,000 Deductible and $100,000 Liability $1,580
$500,000 with $1,500 Deductible and $100,000 Liability $1,523
$500,000 with $2,000 Deductible and $100,000 Liability $1,467
$500,000 with $2,500 Deductible and $100,000 Liability $1,433
$500,000 with $500 Deductible and $300,000 Liability $1,765
$500,000 with $1,000 Deductible and $300,000 Liability $1,610
$500,000 with $1,500 Deductible and $300,000 Liability $1,553
$500,000 with $2,000 Deductible and $300,000 Liability $1,497
$500,000 with $2,500 Deductible and $300,000 Liability $1,463
$500,000 with $500 Deductible and $500,000 Liability $1,788
$500,000 with $1,000 Deductible and $500,000 Liability $1,632
$500,000 with $1,500 Deductible and $500,000 Liability $1,574
$500,000 with $2,000 Deductible and $500,000 Liability $1,518
$500,000 with $2,500 Deductible and $500,000 Liability $1,484
$600,000 with $500 Deductible and $100,000 Liability $2,070
$600,000 with $1,000 Deductible and $100,000 Liability $1,899
$600,000 with $1,500 Deductible and $100,000 Liability $1,828
$600,000 with $2,000 Deductible and $100,000 Liability $1,759
$600,000 with $2,500 Deductible and $100,000 Liability $1,720
$600,000 with $500 Deductible and $300,000 Liability $2,102
$600,000 with $1,000 Deductible and $300,000 Liability $1,931
$600,000 with $1,500 Deductible and $300,000 Liability $1,860
$600,000 with $2,000 Deductible and $300,000 Liability $1,790
$600,000 with $2,500 Deductible and $300,000 Liability $1,751
$600,000 with $500 Deductible and $500,000 Liability $2,126
$600,000 with $1,000 Deductible and $500,000 Liability $1,954
$600,000 with $1,500 Deductible and $500,000 Liability $1,883
$600,000 with $2,000 Deductible and $500,000 Liability $1,812
$600,000 with $2,500 Deductible and $500,000 Liability $1,773

 

What deductible and liability limits give you the cheapest New Jersey homeowners insurance?

Let’s take a closer look at the average New Jersey homeowners insurance rates by coverage level. As you’ll see in the chart above, the cheapest New Jersey home insurance rates are those with the highest deductible amount and lowest liability limit. Let’s look just at dwelling coverage of $200,000 as an example, outlined below. The premium with the highest deductible ($2,500) and lowest liability limit ($100,000) is $642. That’s $137 less than the same policy with a $500 deductible.

$200,000 dwelling/$100,000 liability

Rate

$2,500 Deductible

$642

$2,000 Deductible

$656

$1,500 Deductible

$681

$1,000 Deductible

$711

$500 Deductible

$779

 

New Jersey home insurance rates by company

It's crucial to shop around for the best home insurance rate, because prices for the same coverage vary by hundreds of dollars. If you don’t compare rates, you could wind up overpaying.

Many factors influence the price you pay for insurance. Among others, the Insurance Information Institute (III) cites the following:

  • Your home's square footage
  • Building costs in your area, and your own home's construction, materials and features
  • Local crime rates
  • The likelihood of certain types of disasters, such as hurricanes

So, shop around for the right policy. III suggests getting at least three price quotes when shopping for coverage, and says that doing so can save you up to hundreds of dollars annually.

Although New Jersey home insurance costs can be expensive, it's a mistake to cut corners in an attempt to save. III recommends that you get enough insurance to cover the costs to:

  • Repair or replace the structure of your home and personal possessions
  • Defend yourself against liability costs if someone is hurt on your property
  • Pay for a temporary place to live while your home is repaired or replaced

Who has the cheapest New Jersey home insurance?

Here are home insurance rates by company for six coverage sets. Based on our rate analysis, you’ll see Chubb is the cheapest insurance company in New Jersey and Allstate was the most expensive insurance company for the coverage levels analyzed.

Home insurance: New Jersey rates by company for six coverage levels

$200,000 dwelling/$1,000 deductible/$100,000 liability $200,000 dwelling/$1,000 deductible/$300,000 liability
Chubb $604 Chubb $633
Travelers  $666 Travelers  $683
State Farm $765 State Farm $790
Allstate $810 Allstate $840
$300,000 dwelling/$1,000 deductible/$300,000 liability $400,000 dwelling/$1,000 deductible/$300,000 liability
Chubb $897 Chubb $1,161
Travelers  $950 Travelers  $1,215
State Farm $1,059 State Farm $1,344
Allstate $1,140 Allstate $1,474
$500,000 dwelling/$1,000 deductible/$300,000 liability $600,000 dwelling/$1,000 deductible/$300,000 liability
Chubb $1,431 Chubb $1,707
Travelers  $1,528 Travelers  $1,830
State Farm $1,634 State Farm $1,934
Allstate $1,848 Allstate $2,253

Best New Jersey home insurance companies

The homeowners insurance company with the cheapest rates isn’t necessarily the best. Other factors to consider are customer service and claims processing. Insure.com’s 2017 Best Home Insurance Companies report ranks major insurers on feedback from 3,700 customers. They are asked about the value for the price, customer service, claims service and if they’d recommend the company.

Here are the top 10:

  1. USAA
  2. Chubb
  3. Allstate
  4. AIG
  5. State Farm
  6. The Hartford
  7. Erie Insurance
  8. Farmers
  9. Esurance
  10. Nationwide

 

 New Jersey home insurance discounts

There are several ways to reduce your New Jersey home insurance costs, which will qualify you for home insurance discounts. Many insurers will lower your bill if you purchase more than one type of insurance policy from them. This process – known as "bundling" – can cut your costs by up to 15 percent, III says.

You can also cut your costs by making your home more disaster-resistant. Installing hurricane glass or accordion shutters might net you a discount.

According to III, other possible home insurance discounts include:

  •  Installing smoke detectors, a burglar alarm or dead-bolt locks -- 5 percent each
  • Installing a sprinkler system, and a fire and burglar alarm -- 15 to 20 percent
  • Loyalty discounts -- up to 5 percent after three to five years, and 10 percent for six years or more

 

New Jersey home insurance FAQ

How do I find the right insurance company?

Comparing insurance quotes is among the best ways to find the right homeowners insurance coverage at the best rates. Getting quotes from at least three companies can help you save up to hundreds of dollars in annual insurance costs, according to the Insurance Information Institute.

The New Jersey Department of Banking and Insurance has a web page that lists insurance companies that offer homeowners insurance policies in the state. At this page, you'll find contact information for insurers that sell:

  • Homeowners insurance
  • Renters insurance
  • Mobile home insurance
  • Private flood insurance

Homeowners insurance can be a complicated and confusing subject. In 2015, New Jersey began requiring all insurers to provide a one-page summary detailing each insurance policy's terms, coverages and exclusions. You can find model examples of these summaries at the Department of Banking and Insurance website that explain:

  • Common coverages
  • General policy features
  • Notable coverages and exclusions by type of loss

It's important to note that these are general summaries. Individual insurers might offer summaries with important differences from the summaries you'll find on the Department of Banking and Insurance website.

Why do I need flood insurance?

Floods are a big and devastating possibility in New Jersey. The state ranks third among those most at risk for flooding damages related to hurricane storm surges. More than 350,000 homes are in harm's way in the Garden State, and the potential exists for more than $118 billion in damage, according to CoreLogic.

Flood insurance coverage mostly is available through the National Flood Insurance Program. Nationwide, the average policy costs $400 annually, according to III. An NFIP policy provides coverage of up to $250,000 for the structure of the home, and up to $100,000 for personal possessions. 

New Jersey had nearly 231,000 flood insurance policies in force as of the end of January 2017. But that still leaves a lot of homeowners who forsake flood insurance and put themselves at great risk.  

Failing to buy flood insurance in New Jersey can be a disastrous mistake. Homeowners insurance does not cover damages related to flooding, and floods occur more often than any other natural disaster in the U.S., according to III.

Repairing flood damage can be extremely costly. The average flood insurance claim associated with Superstorm Sandy in 2012 topped $60,000, according to III.

What if I can't find flood insurance?

If you live near the coast – or if you own a home that is especially large or expensive to repair – your flood insurance needs might exceed coverage limits set by NFIP. In addition, some communities do not participate in NFIP, leaving private insurer flood insurance as the only option for homeowners in those areas. 

The New Jersey Department of Banking and Insurance website has a list of a half-dozen insurers that sell private coverage in the state.

What is windstorm insurance?

For many years, New Jersey residents did not worry much about damage caused by storm winds. Superstorm Sandy changed all that. The storm was the third costliest in U.S. history, behind only Hurricane Katrina and Hurricane Andrew.

Wind insurance protects you from most damages -- aside from flooding -- caused by storms such as hurricanes. Depending on where you live in New Jersey, your homeowners insurance policy might have two specific types of deductibles related to windstorm coverage:

  • Hurricane deductible. This applies to damages that occur as the result of a hurricane, according to III. Nineteen states have hurricane deductibles, and New Jersey is among them.
  • Windstorm deductible. This applies to damages from other types of windstorms. It also might include coverage that protects you against hail damage.

New Jersey regulations state that hurricane deductibles kick in when a storm meets two requirements:

  • The National Weather Service designates a storm as a hurricane
  • Wind speeds reach 74 mph somewhere in the state

For damages to fall under a hurricane deductible, they must occur within a window that begins 12 hours prior to the first recorded instance of winds at 74 mph and ends 12 hours after the last recorded instance of 74 mph winds.

Today, two types of insurance deductibles dominate the insurance market. The first is a traditional fixed-dollar deductible. For example, if your deductible is $500, you are obligated to pay $500 out of pocket to cover repairs before your insurance coverage kicks in.

In recent years, a second type of deductible has emerged, and it has become increasingly common, especially for hurricane coverage. Known as a "percentage deductible," it requires you to pay a much larger amount out of pocket before your insurance coverage kicks in.

For instance, if your home is insured for $200,000 and your hurricane percentage deductible is 2 percent, you would be on the hook for $4,000 before your insurance coverage would kick in.

Some deductibles are mandatory, meaning they are set by state rules and regulations, or by insurers. Typically, mandatory deductibles are found in higher-risk areas, such as near the coast.

Insurers are allowed to use mandatory hurricane deductibles of up to 5 percent in ZIP codes designated by New Jersey law. These deductibles also can apply in areas the Department of Banking and Insurance approves. 

Insurers also can offer optional hurricane deductibles, which typically apply in lower-risk areas. These may range up to 10 percent. Policyholders who choose this option will receive a premium credit.

Making your home more resistant to storm damage – such as by adding hurricane shutters – might lower or even eliminate your hurricane deductible. Ask your insurer for more information.

What if I can't find wind insurance?

In some cases, it might be difficult to obtain insurance coverage – including windstorm insurance. This is particularly true if you live in a high-risk area near the coast.

In such instances, the New Jersey Insurance Underwriting Association offers polices for one- to four-family homes. This is known as a FAIR Plan. Coverage is limited, but includes wind insurance.

If your home has certain wind-resistant features, you might be eligible for a reduction in the hurricane deductible associated with a FAIR Plan. Policyholders in New Jersey's 116 coastal area ZIP codes can apply for such a reduction by visiting the New Jersey Insurance Underwriting Association website.

For more information on FAIR Plans, see the next section.

What can I do if I can't get homeowners insurance in New Jersey?

For various reasons, you might find it difficult to get homeowners insurance from a private insurer. Perhaps you live in an area prone to flooding or vulnerable to other hazards. Or perhaps your home is would be extremely expensive to repair.

New Jersey allows some insurance companies – known as surplus lines insurers – to sell coverage for risks that other insurers will not cover. However, it's important to note that surplus lines insurers are not regulated to the same degree as standard insurance companies.

You can find out more about surplus lines insurers at the New Jersey Department of Banking and Insurance website.

If you cannot get homeowners insurance coverage from anybody, a policy might be available from the New Jersey Insurance Underwriting Association, known as the FAIR Plan.

These plans provide homeowners insurance basics, such as coverage for damage associated with fire, lightning, wind and smoke. However, you will not have theft or personal liability coverage, although the theft coverage is available if you are willing to pay extra for a policy endorsement.

It's important to note to that FAIR Plan coverage should only be viewed as an option of last resort if you can't get coverage elsewhere. For more information, check out the New Jersey Insurance Underwriting Association website.

Where do I get claims processing info or file a complaint?

You might end up disputing how your homeowners insurance company handled a claim. If you cannot resolve the matter to your satisfaction, consider contacting the New Jersey Department of Banking and Insurance. You can file a complaint by phone at 609-292-7272 or 800-446-7467. Or, file a complaint online.  

When filing a complaint, make sure to include:

  • Details about your problem
  • The name of your insurance company and/or agent
  • The policy number and claim number (where appropriate)
  • Any other relevant documents 

Methodology:

Insurance.com in 2016 commissioned Quadrant Information Systems to field home insurance rates from major insurers in each state for nearly all ZIP codes in the country for 75 coverage levels based on various dwelling and deductible limits. The homeowner profile is a 35-year-old married applicant with excellent insurance score; new business HO3 policy for house built in 2000 with frame construction and composition roof. Other Structures: 10%. Loss of Use defaulted: 10%. Personal Property defaulted: 50%. Guest Medical limit: $5,000. Personal property: 50% of dwelling coverage for actual cash value.

 

 

Related Articles on Insurance.com

Get Home Quotes

Want to bundle home and auto insurance for potential discounts?