Best and Cheapest Home Insurance Companies in New Jersey
NJM has the best deal on home insurance in New Jersey for most homeowners, with an average rate of $802 per year.
Compare Home Insurance Quotes in New Jersey
To help New Jersey homeowners find the best home insurance, ValuePenguin compiled thousands of quotes and studied customer satisfaction ratings from the top insurance companies in the state.
Best cheap home insurance in New Jersey
ValuePenguin collected thousands of home insurance quotes from across New Jersey to find the state's cheapest rates. Those are weighed against coverage options, possible discounts and several customer service metrics to determine the best company to fit your needs.
Quotes are for a 2,100-square-foot home that is the average age and value in New Jersey, according to the U.S. Census. Full methodology
Cheapest homeowners insurance in New Jersey
The cheapest company for home insurance in New Jersey is NJM, offering standard policies for $802 per year, or $67 per month. NJM is $557 cheaper per year than the statewide annual average.
The statewide average rate in New Jersey is $1,359 per year, or $113 per month.
Compare Home Insurance Quotes from Companies in New Jersey
Cheap annual home insurance in New Jersey
Best home insurance in New Jersey overall: NJM
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Editor rating
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Annual rate
$802 ?
Pros and cons
NJM offers the cheapest rate for a standard home insurance policy, at $802 per year, or $67 per month. This is $557 cheaper per year than the statewide average of $1,359 per year across all companies in New Jersey.
The company boasts an excellent score of 0.07 in the National Association of Insurance Commissioners Complaint Index, meaning the company gets virtually no customer complaints.
NJM offers a broad range of policy add-ons that are almost never offered by other companies, such as:
The biggest disadvantage of NJM is the company’s lack of discounts. However, NJM offers some uncommon discounts, like for owning an automatic backup generator, being 65 years or older and installing impact-resistant windows.
Best for coastal homes: Allstate
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Editor rating
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Annual rate
$1,025 ?
Pros and cons
Allstate offers some of the cheapest insurance rates in New Jersey, at $1,025 per year, or $85 per month. This is 25% cheaper than the average statewide rate of $1,359 per year.
With coastal living comes the risks of flooding and wind damage from potential hurricanes or oceanic storms. As a partnered company with the National Flood Insurance Program (NFIP), Allstate makes it convenient to buy a flood insurance policy through an Allstate agent.
Like similar home insurance policies, Allstate home insurance covers other damage associated with coastal storms caused by water, ice, lightning strikes, power surges, wind and hail.
Allstate has a 0.67 Complaint Index from the NAIC, meaning the company gets 33% fewer complaints than other insurers similar in size.
The most notable drawback to Allstate is its lack of unique discounts. The company offers basic policy savings like a loyalty discount, early signing discount and multi-policy discount, but no other substantial discounts that could benefit most homeowners.
Best for high-value homes: Chubb
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Editor rating
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Annual rate
$1,244 ?
Pros and cons
Chubb is the best insurance company in New Jersey for high-net-worth homeowners and high-value properties. The company offers higher coverage limits than other companies, as well as a cash settlement option for homeowners who may not want to repair the damage to their home. Chubb's average rate is $1,244 per year, which is $115 cheaper per year than the statewide average.
The company’s standard package also includes special coverages like security risk assessment and cyber insurance.
In addition to high-end coverage, Chubb is also known for its top-tier customer service and hassle-free claims process. The company scored a 0.70 in the NAIC Complaint Index, meaning it gets 30% fewer customer complaints than an average insurer its size.
However, Chubb home insurance often requires minimum coverage limits well above the value of many homes. That means a basic policy might be more expensive than competitors' if the value of your home isn't high.
New Jersey home insurance rates by city
The cheapest city for home insurance in New Jersey is Belle Mead, at an average rate of $1,025 per year. This is $334 cheaper per year than the statewide average. Belle Mead is a small, unincorporated community in Somerset County, just north of Princeton.
The most expensive city for home insurance in New Jersey is Atlantic City, with an average rate of $2,367 per year. This is $1,008 more expensive per year than the statewide average.
City | Average annual rate | Difference from state average |
|---|---|---|
| Absecon | $1,959 | 44% |
| Adelphia | $1,644 | 21% |
| Allendale | $1,074 | -21% |
| Allenhurst | $2,078 | 53% |
| Allentown | $1,175 | -14% |
Best home insurance companies in New Jersey
NJM and USAA are the best-rated insurance companies in New Jersey. NJM offers the cheapest rates and best customer satisfaction rating in comparison to other insurers.
USAA offers the best benefits specific to military members and their families, like a deductible waiver for lost, stolen or destroyed issued gear, and coverage at home or overseas in active war zones. It also boasts an excellent customer service rating from the NAIC.
Company |
Rating
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|---|---|
| NJM | |
| USAA | |
| Chubb | |
| Farmers | |
| Travelers | |
| Allstate | |
Most common homeowners insurance risks in New Jersey
Due to its location on the northeastern coast, New Jersey sees many seasonal storms that begin in the Atlantic Ocean, such as hurricanes and Nor'easters. These large storms can cause damage from wind, hail, snow and flooding.
Is wind damage covered by home insurance?
Damage to your home from wind is almost always covered by home insurance. Wind is one of the basic perils included in nearly every home insurance policy.
Is damage from rain and flooding covered by insurance?
Unfortunately, damage to homes from rain and flooding usually isn't covered by standard homeowners insurance policies. Instead, homeowners whose properties are at risk of flooding need to buy a separate [/link url="/flood-insurance/how-get-flood-insurance" title="How to Buy Flood Insurance"]flood insurance policy[/link], which covers damage to your property from natural flooding, such as hurricane-related flooding or river overflow.
You can get flood insurance from the National Flood Insurance Program or from private insurers like Allstate.
Is damage from snow covered by homeowners insurance?
Heavy snow can add weight to your roof, causing it to cave in or collapse. Luckily, damage from snow and ice is covered in most standard home insurance policies. However, it’s important to note that home insurance does not cover damage due to negligence. To avoid this issue, consider clearing off your roof after a storm or heavy snowfall.
Frequently asked questions
How much is homeowners insurance in New Jersey?
The average cost of homeowners insurance in New Jersey is $1,359 per year, or $113 per month. That's 10% cheaper than the national average of $1,516 per year.
Who has the cheapest homeowners insurance in New Jersey?
NJM offers the cheapest home insurance in New Jersey. The company’s average rate of $802 per year is 41% cheaper than the state average.
How much is flood insurance in New Jersey?
The average cost of NFIP flood insurance in New Jersey is about $863 per year, or $72 per month. It’s important to note that your home's proximity to water and its elevation affect how much you pay for flood insurance.
Methodology
We collected home insurance quotes for every ZIP code in the state from the largest home insurance companies in New Jersey. Our sample home insurance profile was for a home built in 1967, with $335,600 of dwelling coverage, which is based on the average New Jersey home from the latest U.S. Census Bureau data.
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.
We ranked each company's customer service scores by comparing the National Association of Insurance Commissioners (NAIC) Complaint Index, J.D. Power's home insurance customer satisfaction rankings and our ValuePenguin editor's ratings.