Reviews Report
- New Jersey Manufacturers is Reviews.com’s top pick for New Jersey home insurance, earning a 4.75 out of 5 score.
- The best cheap home insurance provider in New Jersey is Selective Insurance, with $372 average premiums.
- If you’re a new homeowner, we recommend State Farm for its online tools and resources
New Jersey home insurance isn’t a legal requirement, but if you have a mortgage on your home, it could be a condition of your loan terms. The average cost of homeowners insurance in New Jersey is $1,209 per year. If you’re in the market for home insurance, we compared providers to make the shopping process easier.
Reviews.com used Quadrant data to map the average home insurance premium, and a unique in-house methodology to compare discounts, coverage, and third-party evaluations to rank and review the best home insurance. Compare quotes from carriers that provide home insurance in your state to make sure you get the best homeowners insurance rates available. Based on our comparison, we found that New Jersey Manufacturers (NJM), USAA, Selective Insurance, Chubb, State Farm, and Progressive are the best home insurance carriers in the state.
The 6 Best Homeowners Insurance in New Jersey
- New Jersey Manufacturers: Best New Jersey Home Insurance for Dividend Policies
- USAA: Best New Jersey Home Insurance for Military Members
- Selective Insurance: Best New Jersey Home Insurance for Flood Insurance
- Chubb: Best Best New Jersey Home Insurance for High-Value Homes
- State Farm: Best New Jersey Home Insurance for New Homeowners
- Progressive: Best New Jersey Home Insurance for Discounts
Compare the Best New Jersey Home Insurance Companies
| Reviews.com Score Score is based on company’s customer experience, financial stability, and coverage options. | Average Premium** | J.D. Power Customer Satisfaction* J.D. Power scores are based on surveys for customer satisfaction and product quality. | AM Best AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | Standard & Poor’s Standard & Poor’s (S&P) rates creditworthiness for businesses, countries and cities that issue bonds. | ||
|---|---|---|---|---|---|---|
| Pin New Jersey Manufacturers (NJM) | 4.75 | $522 | N/A | A+ | N/A | |
| Pin USAA | 3.8 | $803 | 889 | A++ | AA+ | |
| Pin Selective Insurance | 3.5 | $372 | N/A | A | BBB | |
| Pin Chubb | 3.5 | $633 | 778 | A++ | AA | |
| Pin State Farm | 2.8 | $724 | 829 | A++ | AA | |
| Pin Progressive | 3.25 | $788 | 797 | A+ | AA |
Information accurate as of June 2021
*Data provided by Coverage.com
**J.D. Power’s 2020 Home Insurance Satisfaction Study. Based on a 1,000-point scale.
Best for Dividend Policies
Why we chose it
Why we chose it
Pros
- Affordable premiums
- Opportunity to receive dividends
- Wide variety of endorsements
Cons
- Not rated by J.D. Power
- Some coverages and discounts are not available in every state
- Fewer online tools and resources than some competitors
Available Discounts
- Multi-policy
- Smoke alarm/fire sprinkler system
- Retired homeowner
- Backup or portable generator
- Non-smoker
- Storm shutters and hurricane glass
- Pay in full
- Electronic payment
Additional Coverage
- Scheduled personal property coverage
- Credit card fraud coverage
- Valuable items coverage
- Identity theft fraud coverage
- Family liability coverage
- Fungi, wet/dry rot, and bacteria coverage
- Supplemental loss assessment coverage
- Water backup/sump pump coverage
- Earthquake insurance
- Flood insurance
More NJM Insurance Reviews
Best for Military Members
Why we chose it
Why we chose it
Pros
- High customer satisfaction ratings
- Competitive prices
- Policies include replacement cost coverage
Cons
- Must be affiliated with the military to get coverage
- Not many discounts
- Few local office branches
Available Discounts
- Policy bundling
- Protective device
- Claims-free
Additional Coverage
- Home sharing insurance
- Identity theft coverage
- Earthquake insurance
- Flood insurance
- Military uniform coverage
- Valuable personal property coverage
More USAA Insurance Reviews
Best for Flood Insurance
Why we chose it
Why we chose it
Pros
- Robust flood insurance policies
- Several endorsements for more coverage
- Lower premiums than some competitors
Cons
- No online quotes
- Not rated by J.D. Power
- Few online tools and resources
Available Discounts
- Multi-policy
- Home protection systems (smoke alarms, burglar alarms, fire alarms, automatic sprinkler systems)
- Quote in advance
- Responsible payer
- Service line coverage
- Identity theft coverage
- Home cyber protection
- Home systems protection
- Selective Edge endorsement policy
Best for High-Value Homes
Why we chose it
Why we chose it
Pros
- Great option for high-value homes
- Variety of unique coverages
- Policies come standard with replacement cost coverage
Cons
- No online quote tool
- Below-average customer satisfaction rating
- Policies tend to be expensive
- Very few discounts
Available Discounts
- Policy bundling
Additional Coverage
- Extended replacement cost coverage
- Risk consulting services
- Cash settlement option
- Tree/debris removal
- Electronic data restoration
- Lock replacement coverage
- HomeScan coverage
- Water backup coverage
Best for New Homeowners
Why we chose it
Why we chose it
Pros
- Robust and user-friendly website
- Detailed online quotes
- Helpful tools and resources for first-time home insurance buyers
Cons
- Not many discounts
- Discounts are not available in every state
- Below average claims satisfaction reviews
Available Discounts
- Multi-policy
Home safety device
Impact-resistant roof
Additional Coverage
- Replacement cost coverage
Identity restoration coverage
Flood insurance
Water back up coverage
Earthquake insurance
Ordinance/law coverage
Inflation coverage
Personal articles coverage
More State Farm Insurance Reviews
Best for Discounts
Why we chose it
Why we chose it
Pros
- Long list of discounts
- Helpful online tools and resources
- Great financial strength score
Cons
- Very few optional coverages
- Poor customer satisfaction ratings
- Below-average ratings for claims satisfaction
Available Discounts
- Multi-policy
Safety and alarm systems
Quote in advance
New home purchase
Paperless statements
New home construction
Pay in full
Single deductible
Additional Coverage
- Water backup coverage
Personal injury coverage
More Progressive Insurance Reviews
*Data provided by Coverage.com
**J.D. Power’s 2020 Home Insurance Satisfaction Study. Based on a 1,000-point scale.
Average Cost of Home Insurance in New Jersey
The average cost of homeowners insurance in NJ is $1,209 per year, based on 2018 data from the Insurance Information Institute (III). The cost of home insurance in the Garden State is slightly less expensive than the national average rate of $1,249 per year.
New Jersey homeowners pay less for insurance than homeowners in some neighboring states. For instance, the average cost of home insurance in New York is $1,321 per year, and in Connecticut, the average annual premium is $1,494 .
However, it’s important to keep in mind that home insurance quotes are personalized. You might pay more or less than the statewide average rate based on factors like your age, zip code, credit score, and claims history.
The Cheapest Homeowner Insurance Companies in New Jersey
| Homeowner Insurance Companies | Average Annual Premium |
| Selective Insurance | $372 |
| Cumberland Mutual | $411 |
| New Jersey Skylands Insurance | $522 |
| Kingstone Insurance | $525 |
| Narragansett Bay Insurance | $540 |
| Franklin Mutual | $598 |
| New Jersey Manufacturers | $611 |
| Chubb | $633 |
| Germantown Insurance | $641 |
| Preferred Mutual Insurance | $657 |
| Palisades Property and Casualty Insurance | $709 |
| State Farm | $724 |
| Progressive | $788 |
| USAA | $803 |
| U.S. Coastal Insurance | $875 |
| High Point Preferred Insurance | $940 |
| Homesite | $971 |
| The Hanover | $1,058 |
| Philadelphia Contributionship Insurance | $1,060 |
| Encompass | $1,079 |
| Liberty Mutual | $1,257 |
| Average Annual Premium Across Companies | $752 |
Average Homeowner Insurance Costs by Age of Home in New Jersey
| Homeowner Insurance by Age of Home | Average Annual Premium |
| 0-5 years | $947 |
| 5-20 years | $942 |
| 20-35 years | $916 |
| 35-50+ years | $726 |
| Average Annual Premium Across Ages | $883 |
Top 3 Cheapest Homeowner Insurance Companies in New Jersey
- Selective Insurance: $372
- Cumberland Mutual: $411
- New Jersey Skylands Insurance: $522
Top 3 Most Expensive Homeowner Insurance Companies in New Jersey
- Philadelphia Contributionship Insurance: $1,060
- Encompass: $1,079
- Liberty Mutual: $1,257
Common Home Insurance Perils in New Jersey
New Jersey doesn’t experience severe weather often, but thousands of homes in the state could get damaged or destroyed by hurricanes, flooding, storm surges, and high winds. Although home insurance will cover most of these perils, it’s important to understand the potential risks.
Data from the III shows that 471,323 houses in New Jersey are at risk of storm surge damage from category four or five hurricanes. There are 381,388 homes at risk of damage from a category three storm, and 277,147 homes at risk from a category two storm. New Jersey was also seriously impacted by Hurricane Sandy in 2012, which damaged an estimated 346,000 homes.
New Jersey homeowners should also be aware of the state’s wildfire risk. According to the New Jersey Forest Fire Service, an average of 1,500 wildfires burn about 7,000 acres of New Jersey’s forests on an annual basis.
Add-on home insurance coverage in New Jersey
Basic home insurance policies are pretty comprehensive and cover a long list of common losses. You can check your policy’s declaration page to see which perils are covered. However, there are some losses that aren’t covered, which is why New Jersey homeowners should consider purchasing endorsements.
One of the most valuable add-on coverages for homeowners in New Jersey is flood insurance because regular home insurance doesn’t cover flooding or water damage. Flood insurance is available from all of the providers we reviewed. Most home insurance companies in New Jersey sell flood insurance through the federally-managed National Flood Insurance Program (NFIP).
If you keep valuable items in your home, you might also consider purchasing scheduled personal property coverage. This endorsement raises your coverage limits for specific valuable items, like fine art, jewelry, furs, collections, and even wine. It’s available from most insurance companies in New Jersey.
Before you purchase home insurance in New Jersey, consider reviewing these state-sponsored resources for more information:
- NJ Department of Banking and Insurance’s Consumer Home Insurance Guide
- NJ Department of Banking and Insurance’s Home Insurance Policy Summary
- NJ Department of Banking and Insurance’s Licensed Home Insurance Underwriters in New Jersey
- National Flood Insurance Program (NFIP) How to Buy Flood Insurance
New Jersey Home Insurance FAQ
Methodology
We evaluated New Jersey home insurance companies based on availability, customer satisfaction, financial stability, and coverage to determine Reviews.com score and create our best home insurance reviews. To compare home insurance companies with other providers across the board, we calculate each Reviews.com score based on the following:
- Coverage: The more options a home insurance company has for insurance add-ons and coverages, the higher it scores in our methodology.
- Customer Experience: We reviewed the National Association of Insurance Commissioners’ National Complaint Index and compared each homeowners insurance company’s complaint rating.
- Customer Satisfaction: With J.D. Power’s 2020 Home Insurance Satisfaction Study, we assigned a score to each company based on the rating it received.
- Financial Stability: Reviews.com utilized AM Best ratings to assign a score based on each home insurance company’s financial stability.
- Discounts: We reviewed and compared the number of discounts advertised on each home insurance company’s website. The more available discounts, the higher the score in this metric.
Reviews.com also used Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on male and female homeowners with good credit and the following coverage limits:
- Coverage A, Dwelling: $200,000
- Coverage B, Other Structures: $0
- Coverage C, Personal Property: $100,000
- Coverage D, Loss of Use: $40,000
- Coverage E, Liability: $250,000
- Coverage F, Medical Payments: $1,500
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
About the Authors
Elizabeth Rivelli is an insurance writer for Reviews.com. Over the last year, she has covered insurance providers, best policies, industry trends and more. Elizabeth has been featured in The Simple Dollar, Bankrate and Coverage.com, among others. She holds a bachelor's degree in Communication Studies from Northeastern University in Boston, MA. The Best Term Life Insurance Companies is Elizabeth’s favorite review on Reviews.com.
