The cost of home insurance in New Jersey varies due to the numerous factors influencing home insurance rates. A few of them include building costs in your area, local crime rates, and the risk where you live from natural disasters such as hurricanes and other storms.
The average rate for a home insurance policy in New Jersey, based on 2022 Insurance.com data, is $1,267 a year.
Here we outline what you need to know to make smart choices when buying homeowners insurance in New Jersey. We rank the best homeowners insurance companies in New Jersey and identify cheap homeowners insurance companies in New Jersey for six coverage levels.
Key takeaways
- New Jersey home insurance costs – $1,267 a year – are below the national average of $2,158.
- You may need to add additional coverage for hurricanes or floods if you live in a coastal or flood-prone area.
- New Jersey Manufacturers has the cheapest home insurance rates in New Jersey, averaging $855 a year.
- How much is home insurance in New Jersey?
- Cheapest homeowners insurance: New Jersey
- New Jersey homeowners insurance by ZIP code
- Homeowners insurance rates in New Jersey by coverage level
- How much is home insurance in NJ cities?
- Best home insurance companies in NJ
- How homeowners insurance in New Jersey works
- New Jersey homeowners insurance discounts
- New Jersey home insurance FAQs
- Methodology
How much is home insurance in New Jersey?
The average cost of home insurance in New Jersey is $1,267, making New Jersey the sixth least-expensive state in the country for home insurance. Its average cost is $891 less than the national average of $2,158 for the coverage level of:
- $300,000 dwelling coverage
- $1,000 deductible
- $300,000 liability
Cheapest homeowners insurance: New Jersey
Based on our 2022 rate analysis, New Jersey Manufacturers is the cheapest home insurance company among carriers surveyed. Heritage Insurance Holdings, Chubb, State Farm, and National General Insurance also have cheap insurance rates for New Jersey homeowners. In the table below, see the home insurance rates by company for dwelling and liability coverage of $300,000, with a $1,000 deductible.
| Company name | Average annual rate |
|---|---|
| New Jersey Manufacturers | $855 |
| Chubb | $1,040 |
| Heritage Insurance Holdings | $1,064 |
| State Farm | $1,112 |
| National General Insurance | $1,200 |
| USAA | $1,340 |
| Franklin Mutual | $1,373 |
| Palisades | $1,467 |
| Farmers Insurance | $1,877 |
New Jersey homeowners insurance by ZIP code
By entering your ZIP code in the search box and desired coverage level, you’ll see the average home insurance rate for that area. You will also see 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. The difference between the highest and the lowest rate is how much you can save by comparing companies.
HOME INSURANCE CALCULATOR
Average home insurance rates in CALIFORNIA
AVERAGE RATE: $797
Most & least expensive zip codes for homeowners insurance in California
Most Expensive
| Zip Code | City | Highest Rate |
|---|---|---|
| 92325 | Crestline | $1,450 |
| 92391 | Twin Peaks | $1,426 |
| 92321 | Cedar Glen | $1,425 |
| 92352 | Lake Arrowhead | $1,423 |
Least Expensive
| Zip Code | City | Lowest Rate |
|---|---|---|
| 94086 | Sunnyvale | $742 |
| 94085 | Sunnyvale | $743 |
| 94087 | Sunnyvale | $743 |
| 95051 | Santa Clara | $743 |
Homeowners insurance rates in New Jersey by coverage level
Below we’ve listed average rates for multiple dwelling coverage levels and liability limits with a$1,000 deductible.
| Coverage | Average annual rate |
|---|---|
| $200,000 dwelling/$100,000 liability | $941 |
| $200,000 dwelling/$300,000 liability | $962 |
| $300,000 dwelling/$100,000 liability | $1,245 |
| $300,000 dwelling/$300,000 liability | $1,267 |
| $400,000 dwelling/$100,000 liability | $1,571 |
| $400,000 dwelling/$300,000 liability | $1,593 |
| $500,000 dwelling/$100,000 liability | $1,843 |
| $500,000 dwelling/$300,000 liability | $1,864 |
| $600,000 dwelling/$100,000 liability | $2,135 |
| $600,000 dwelling/$300,000 liability | $2,156 |
How much is home insurance in NJ cities?
Below are average rates for some of the state's largest and best-known cities, for a policy with $300,000 dwelling and liability coverage with a $1,000 deductible. Homeowners insurance in Clifton, Hoboken, and Passaic is much more affordable than in other metro areas. Homeowners insurance in Asbury Park, Newark, and Jersey City is more expensive.
| City | Average rate | Difference from the state average of $1,267 |
|---|---|---|
| Hoboken | $1,187 | $80 less |
| Clifton | $1,207 | $60 less |
| Elizabeth | $1,280 | $13 more |
| Paterson | $1,306 | $39 more |
| Trenton | $1,317 | $50 more |
| Passaic | $1,324 | $57 more |
| Jersey City | $1,387 | $120 more |
| Newark | $1,397 | $130 more |
| Camden | $1,406 | $139 more |
Best home insurance companies in NJ
The following are the best national homeowners insurance companies that offer coverage in New Jersey based on J.D. Power ratings, A.M Best ratings and Insurance.com’s overall rating based on our best home insurance companies of 2022:
| Company Name | J.D. Power rating | A.M best rating | Insurance.com rating (out of 5) |
|---|---|---|---|
| USAA | 884 | A++ | 4.31 |
| State Farm | 829 | A++ | 3.3 |
| Farmers Insurance | 792 | A | 3.13 |
| Chubb | 809 | A++ | 3 |
USAA offers coverage only to military community members and their families
How homeowners insurance in New Jersey works
A home insurance policy includes coverage for:
- Dwelling: This covers the actual replacement cost of your home.
- Liability: Pays out when you are responsible for injuries or property damage to someone else.
- Medical payments: Provides no-fault medical coverage for your guests.
Policies also usually have a set percentage of your dwelling coverage for:
- Other structures: 10%: This covers any structures not attached to the house.
- Personal property: 50%: This covers all of your belongings.
- Loss of use: 20%: This pays for a hotel and other expenses when your house is unlivable due to a covered claim.
It’s vital to know how your policy covers hurricanes and windstorms. These perils are not automatically included in some areas, and hurricane deductibles are also common. This deductible is usually between 1-5% of the dwelling coverage. Read the policy details and speak to an agent to be sure you are covered.
New Jersey homeowners insurance discounts
There are several ways to reduce your New Jersey home insurance costs. 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 19%, on average, according to Insurance.com’s 2022 discount data analysis.
You can also cut your costs by making your home more disaster-resistant. Installing hurricane glass or accordion shutters might net you a discount.
Other possible home insurance discounts include:
- Installing smoke detectors, a burglar alarm, or dead-bolt locks -- 1%, 4% and 1% respectively.
- Installing a sprinkler system, and a fire and burglar alarm -- 3% to 6%
- Loyalty discounts –- about 7% on average, after three to five years, and 12% for 10 years or more
New Jersey home insurance FAQs
Is flood insurance covered by homeowners insurance in New Jersey?
Flood insurance isn't part of a regular home insurance policy. Instead, homeowners need to buy a separate policy either through the National Flood Insurance Program (NFIP) or a home insurer that works with the NFIP.
What can I do if I can't get homeowners insurance in New Jersey?
The New Jersey Underwriting Association offers the FAIR Plan for property owners who can't get home insurance elsewhere.
A FAIR Plan offers coverage similar to any home insurance policy. It protects against fire, lightning, explosion, vandalism, snow damage, and other perils. It also offers extended coverage for windstorms and hail coverage.
However, FAIR Plan coverage is typically more restrictive – and more expensive – than standard homeowners insurance.
Where do I get claims processing information or file a complaint?
The New Jersey Department of Banking and Insurance is the place to go if you need to file a complaint about a home insurance company.
You can also file an online complaint using a Consumer Complaint Form. When you file a complaint, you'll need your insurance company's name, the policy number and claim number, if appropriate, and related documents, such as letters and photos and information about the issue.
Methodology
Insurance.com commissioned 2022 home insurance rates from Quadrant Data Services fielded across all New Jersey ZIP codes. Rates were fielded at multiple coverage levels with a deductible of $1,000.
