The Best Homeowners Insurance in New Jersey

New Jersey is considered a fairly high-risk state for homeowners insurance. According to the Insurance Information Institute's most recent evaluation, about 32% of New Jersey homes are on the coast and vulnerable to hurricanes. That means a high likelihood of claims payouts for providers in the state.

Here’s the good news: Unlike most high-risk states, New Jersey’s insurance premiums have stayed fairly low. In fact, they’re right on par with the national average (around $1,100 per year). The downside is that insurance providers hedge their bets by including hefty hurricane deductibles on New Jersey homeowner policies — usually around five percent of the home’s total value. Keep an eye out when shopping for a policy, and make sure the fine print doesn’t include a hurricane deductible of more than five percent.

How We Found the Best Homeowners Insurance in New Jersey

We evaluated the five largest homeowners insurance providers in the state by market share. Aside from reasonable deductibles, we looked for well-rounded coverage, strong financial backing, great customer support, and ample discount opportunities.

Each New Jersey provider was held up to the same strict criteria that we developed for our national review of the Best Homeowners Insurance Providers. For an unbiased look at their credentials, we turned to financial scores from the independent agency A.M. Best, as well as customer ratings from Consumer Reports and J.D. Power.

The Best Homeowners Insurance in New Jersey

  • State Farm
  • Allstate
  • Liberty Mutual
  • Chubb
  • New Jersey Manufacturers

New Jersey Homeowners Insurance Reviews

State Farm

State Farm earns solid praise across the board, taking home an “A” from A.M. Best for financial stability, as well as top customer satisfaction scores from Consumer Reports and J.D. Power. Besides strong ratings, there’s a lot to like about this big-name national provider.

For instance, State Farm makes policy shopping painless. Policy and coverage information are clearly listed online, and it only takes a couple minutes to generate a detailed quote with customizable components. We especially like that State Farm’s site lets you adjust deductible amounts to see how that will impact pricing.

State Farm also offers decent discount opportunities. Homeowners can save on their coverage by bundling home and auto insurance, installing fire, smoke, and burglar alarms, selecting a higher deductible, and making sure that their roof is up to code.

It’s worth noting that New Jersey homeowners will have to pay a separate hurricane deductible. With State Farm, this can be either two or five percent of your home’s total value — but either way, it must be higher than your standard deductible. State Farm was the only company we encountered that let you choose the amount; we liked that homeowners get to have a say in their rates.

Allstate

We particularly like Allstate for first-time homeowners. Its website is sharp, with countless resources and calculators to help get you started, and its coverage options are vast and customizable — not to mention, affordable.

Part of the reason Allstate’s quotes are so low is that many discounts are applied automatically. The company will cut rates for bundling home and auto insurance, maintaining a smoke-free home, staying claims-free, setting up autopay, and more. By our count, Allstate has the most discounts available of any provider on this list.

Allstate also carries slightly higher deductibles. Its cheaper Standard plan has a $2,000 all-peril deductible, while the higher-tier plans have all-peril deductibles of $1,000. For all three options, the hurricane duration deductible is five percent of your total dwelling protection. Unfortunately, Allstate doesn’t give you the option to select a unique hurricane deductible like State Farm does.

Ratings-wise, Allstate is pretty much on par with our other front runners. It scored “about average” in JD Power’s customer satisfaction survey, and slightly lower than Liberty Mutual and State Farm from Consumer reports. It has rock-solid financial backing, too, with an “A+” rating from A.M. Best.

Overall, Allstate’s rates are appealing, but we suggest caution if you’re looking at one of the company’s cheaper plans. Though they appear to save you money, they come with higher deductibles that may hurt after a disaster.

Liberty Mutual

According to a Liberty Mutual agent we talked to, the company took a few years to re-enter the New Jersey market after Hurricane Sandy. We could sense its hesitancy: Liberty Mutual has an online quoting system for homeowners’ insurance, but it wouldn’t allow us to use it for New Jersey, instead directing us to call an agent.

When we finally got a quote over the phone, we weren’t super impressed with Liberty Mutual’s rates. It quoted us higher annual costs than State Farm or Allstate, with a rigid five percent hurricane deductible. Our agent did mention that we could save $300 by bundling home and auto insurance, but it didn’t quite make up for the difference.

One thing that did stand out was Liberty Mutual's 20% extended replacement coverage. This add-on — which allows you to insure your home for more than its selling price — is important for old houses, whose replacement costs may exceed their actual cash value. We also like the option to include Home Protector Plus, which helps cover the cost of alternate housing and settle claims quickly in the event that your house gets damaged.

Liberty Mutual’s coverage is backed by solid financials, rated “A” by A.M. Best. It even topped State Farm and Allstate by a slim margin in Consumer Reports’ study, which means it can be relied on for strong customer service and smooth claims payouts. At the end of the day, Liberty Mutual is a reputable provider — but it wouldn’t be our first choice for New Jersey homeowners insurance until it regains some footing in the state’s market.

Chubb

Chubb’s Masterpiece policy demonstrates the company’s main focus: high-end clients and homes. It includes coverage for things like “Fine Arts Breakage” and “Newly Acquired Furs, Cameras, Music Instruments, and Collectibles.” Says a pamphlet: “We are a world-leading insurer of fine homes and cars, as well as privately-owned art, antiques and jewelry.”

Then there’s the optional Family Protection Policy, which Chubb touts as one-of-a-kind. It offers protection for kidnappings, ransom, stalking, and incidents of “Air Rage or Road Rage.” Chubb also grabbed headlines for being the first major insurer to include “cyberbullying insurance” on its homeowner policy (covering therapy for victims of cyberbullying, up to $60,000).

If any of these coverage options are important to you, Chubb has the financial reputation to back them up. It has some of the highest credit ratings of any company we evaluated, scoring an“A++” from A.M. Best. And according to J.D. Power’s customer survey, Chubb’s claims experience is super smooth.

Chubb also gives discounts for bundling your auto and home insurance, but its website is generally scant about pricing information and doesn't provide an online quote tool. You'll have to check directly with an affiliated independent agent to see if your home is eligible for Chubb Insurance.

New Jersey Manufacturers

The first thing to know about New Jersey Manufacturers (NJM) is that it sells insurance on a membership-only basis. However, it casts a wide net; coverage is available to public and government employees plus spouses, and to anyone working for a company in the New Jersey Business and Industry Association. Check out the full list of eligibility requirements to see if you qualify.

If you do, NJM is a great choice. For starters, it has a robust coverage selection compared to other top companies. Boaters will love the optional coverage for watercraft, which includes cruiser boats, jet skis, and pontoons through a partnership with American Modern Insurance. It’s also one of two companies to offer an optional coverage for mandated building code upgrades (along with State Farm).

NJM even offers a few interesting perks that the competition doesn’t. Foremost is its dividend program: If the company posts positive financial results for the year, policyholders are “typically credited” with a dividend payment that goes toward paying their annual premium. NJM’s site states that the company has paid dividends annually since 1918.

In addition, NJM is one of a handful of private companies offering flood insurance. Most flood policies must be purchased as a separate plan through FEMA. NJM still sells them through a subsidiary company — New Jersey Re-Insurance — but we liked the convenience of using one website to manage both policies rather than jumping over to FEMA.

Whether or not you’re considering NJM, we suggest checking out its downloadable buyers’ guide, which talks plainly about hurricane deductibles, how to storm-proof your home, and how to shop for homeowners’ insurance. It’s a great resource for shoppers.

Guide to Homeowners Insurance in New Jersey

Keep an eye out for high hurricane deductibles

Hurricane deductibles are a standard part of all New Jersey homeowners insurance. They’re how insurance companies mitigate risk and payout when a destructive tropical storm hits. It’s important to note that hurricane deductibles are separate from standard “all-peril” deductions; in the event of hurricane damage, you’ll pay between one and five percent of your home’s total replacement cost on top of your policy’s normal deductible.

Although you can’t escape them completely, you can be sure to avoid hurricane deductibles that are unreasonably high. Five percent is fairly standard, though some companies will go a little lower. State Farm is the only company we’ve seen that lets you choose the amount (either two or five percent) but it must be higher than your standard deductible. Just remember — anything more than five percent, and you’re overpaying.

Make sure you have some type of flood insurance

Hurricane Sandy exposed a common misconception about homeowners insurance: Most policies don’t include flood coverage. You must buy it separately from the Federal Emergency Management Agency (FEMA), or from a handful of private insurers. Chubb and NJM are the only providers on this list that sell flood insurance directly.

We also recommend keeping an updated home inventory at all times. In the event of flood damage, a current inventory with photos and item values makes it much easier to recoup losses with your insurance company. Some of our favorite insurers, like Allstate and Liberty Mutual, even include home inventory apps that make it easy to put a registry together.

Consider upgrading an old roof before you buy

One independent agent we spoke with informed us that roofs are “the single-most important part” of getting an accurate insurance quote. Once a roof reaches 15 plus years, “companies will start to shake you down for rates,” and in rare cases, may refuse to sell you a policy at all.

You’ll want to make sure that your roof is up to snuff before applying for quotes. It may be easier to find coverage, and prices are likely to be cheaper. Plus — many companies will even cut you a policy discount for insuring a home with a brand new roof.

New Jersey Homeowners Insurance FAQ

How much is homeowners insurance in New Jersey?

The average New Jersey homeowner will pay around $1,149 per year for an HO-3 policy. This is right in line with the national average of $1,173. Of course, how much you’ll pay can vary a lot depending on your home’s size, your assets, and your address. We always recommend checking quotes from multiple companies before buying a policy. That way, you can be sure you’re getting the best deal on the coverage you need.

What is New Jersey Manufacturers home insurance?

New Jersey Manufacturers is one of the state’s largest home insurance providers by market share, and one of our favorite companies. But here’s the rub: It’s membership-only. To qualify for insurance, you must be either a government employee or affiliated with the New Jersey Business and Industry Association. Not sure whether you qualify? You can view a full list of the company’s eligibility requirements here.

The Best New Jersey Homeowners Insurance Companies: Summed Up

A.M. Best Financial Strength Rating
J.D. Power Overall Satisfaction Score
Online Quote Tool
State Farm
A
4/5
Allstate
A+
3/5
Liberty Mutual
A
3/5
Chubb
A++
3/5
New Jersey Manufacturers
A+
N/A