New Jersey homeowners have a few hazards they need to watch out for in order to protect their investment. If they live close to the coast, they may be vulnerable to hurricanes and flooding. The cold winters can cause damage from ice and freezing pipes. Having the best homeowners insurance in New Jersey saves you from having to pay for damages and losses out of pocket.
There are 21 home insurance companies in New Jersey representing the bulk of homeowners. Choosing the right one can be overwhelming. We’re here to help. We reviewed all the New Jersey home insurance companies to learn more about what they offer, their financial stability and what customers have to say about them. Here is the best homeowners insurance New Jersey offers.
The 5 Best Homeowners Insurance Companies in New Jersey
- New Jersey Manufacturers
- Cumberland Mutual
- Kingstone Insurance
- Franklin Mutual Insurance
- Selective Insurance
| Average Price | AM Best Financial Strength | J.D. Power Overall Customer Satisfaction | |
| New Jersey Manufacturers | $522 | A+ | NR |
| Cumberland Mutual | $411 | A- | NR |
| Kingstone Insurance | $525 | A- | NR |
| Franklin Mutual Insurance | $598 | A+ | NR |
| Selective Insurance | $372 | A | NR |
New Jersey Manufacturers
New Jersey Manufacturers Insurance was only available to members of specific groups until 2018. Now anyone who lives in New Jersey can buy auto, renters, and homeowners insurance from NJM.
Best For Bundling Insurance Policies
Why we chose it
Why we chose it
Pros
- Policyholders may earn an annual dividend
- Full-featured website
- Unique homeowners insurance coverages
Cons
- Unaccredited by the Better Business Bureau
- No mobile app
Discounts available
- Senior discount
- New construction discount
- Non-smoker discount
- Backup power supply
Unique features
NJM provides unique homeowners insurance options you may not find elsewhere, such as mold coverage or insurance for wet or dry rot.
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
Cumberland Mutual
Cumberland Mutual is the oldest New Jersey mutual property and casualty insurance company. Providing insurance since 1844, the company today offers car, renters, homeowners, and umbrella insurance.
Best For Fast Claims Support
Why we chose it
Why we chose it
Pros
- Low homeowners insurance New Jersey rates
- Report a claim online
- Good discounts available
- 24/7 claims hotline
Cons
- Not BBB accredited
- No online quote tool
- Very high on complaint index
Discounts available
- Claims-free discount
- Security/alarm system discount
- New or renovated home discount
Unique features
Cumberland Mutual is New Jersey’s oldest mutual insurance company. Although they do offer some online services, the bulk of their services must be handled by calling. If you prefer the traditional way of things by establishing relationships with your insurer and getting phone support, Cumberland Mutual may be the best insurance company for you.
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
Kingstone Insurance
Kingstone Insurance specializes in insuring high-value properties in New Jersey. The insurer markets itself as an expert in insuring coastal communities. If you own a home that’s been assessed for a high amount or you want to insure a vacation home, Kingstone may be the best homeowners insurance in New Jersey.
Best For Affluent Homeowners
Why we chose it
Why we chose it
Pros
- Provides insurance for vacation and seasonal homes
- Low customer complaints
- Robust dog liability insurance
Cons
- Limited discounts
- Higher premiums
Discounts available
- Multiple policy discount
- Fire, smoke, or burglar alarms discount
Unique features
Kingstone doesn’t require you to pay a deductible for hurricane or wind damage claims. In addition, the company is one of the few providers that will allow you to buy dog liability insurance, even if the breed is a known aggressive breed.
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
Franklin Mutual
Franklin Mutual aims to provide customers with convenience. The insurer allows clients to customize their policies with a variety of optional coverages and endorsements.
Best For New Homeowners
Why we chose it
Why we chose it
Pros
- Customizable coverage
- Online customer access
- Online resources and learning material
- Extremely low customer complaints
Cons
- Not accredited by the BBB
- No online quote tool
Discounts available
- discount
- Mature homeowner
- Loyalty discount
Unique features
Franklin Mutual Insurance offers homeowners insurance with an option to add an extended limit endorsement. If your damaged home’s repair or rebuilding cost is more than your coverage amount, Franklin Mutual will pay up to 150% of your limit.
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
Selective Insurance
Selective Insurance Group is based in New Jersey, but provides insurance nationwide. The company specializes in flood insurance and is one of the largest flood insurance providers in the U.S.
Best For Low-Cost Homeowners Insurance
Why we chose it
Why we chose it
Pros
- Low insurance premiums
- Good website portal
- Offers flood insurance
Cons
- No online quote tool
Discounts available
- Multi-policy
- On-time payment history
- Early renewal discount
Unique features
Selective Insurance’s website provides plenty of information through resources and tools. You can manage your policy or file claims online. In addition, Selective Insurance waives your deductible if you’ve suffered a large loss.
*J.D. Power 2020 U.S. Property Claims Customer Satisfaction Study, based on a 1,000-point scale
Average Cost of Homeowners Insurance in New Jersey
The average cost of homeowner insurance in New Jersey is $1,192 per year. That is just slightly under the United States national average, which is $1,211 annually. New Jersey homeowners pay an average of $1,192 per year, according to the Insurance Information Institute — slightly below the national average of $1,211. Keep in mind that your personal homeowners insurance quote may be higher or lower, depending on your city, size, value and age of your house, as well as your age and credit history.The average cost of homeowner insurance in New Jersey is $1,192 per year. That is just slightly under the United States national average, which is $1,211 annually.
However, the actual rate that you’ll pay for homeowners insurance in New Jersey depends on a number of different factors. For instance, the city you live in, the size of your home, your age, your marital status, and other considerations are used to calculate your rate.
Home Insurance Add-Ons That Will Further Protect You
Although New Jersey is pretty far north, the state is still vulnerable to hurricanes. Windstorm damage is already included in your standard homeowners insurance, but flooding is not. If you live on the Jersey coast, flood insurance will protect you against damages or losses. Some New Jersey home insurance companies provide flood coverage, but if not, you can purchase a policy through the National Flood Insurance Program.
The Cheapest Homeowners 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 |
Cost of Homeowners Insurance by Age of Home
| 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 Homeowners Insurance Companies in New Jersey
- Selective Insurance – $372
- Cumberland Mutual – $411
- New Jersey Skylands Insurance – $522
Top 3 Most Expensive Homeowners Insurance Companies in New Jersey
- Philadelphia Contributionship Insurance – $1,060
- Encompass – $1,079
- Liberty Mutual – $1,257
Helpful Resources for New Jersey Homeowners
The New Jersey Department of Banking and Insurance offers great resources for residents shopping for homeowners insurance. You’ll find articles on how to find a home insurance company, what is covered under most policies, how to file a claim and more. They also offer information on how to get flood insurance in New Jersey.
Homeowners Insurance FAQ
Is homeowners insurance required in New Jersey?
No, homeowners insurance is not required in New Jersey. However, if you have a mortgage on your home, your lender will probably require you to have a minimum amount of coverage.
What is the cheapest homeowners insurance in New Jersey?
The cheapest homeowners insurance provider in New Jersey based on averages is Selective Insurance. Their average annual premium is just $372.
How much should my New Jersey homeowners insurance deductible be?
The deductible is the amount you’ll pay out of pocket before the insurance company pays your claim. The higher the deductible, the lower your homeowners insurance will cost. Raise your deductible as high as you can afford, remembering that you’ll need to pay that amount before coverage kicks in.
Methodology
We evaluated the companies based on their customer rating and experience, financial stability, and coverage to determine the best providers. To compare home insurance companies across the board, we then calculated a Reviews.com score based on the following:
- Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using J.D. Power Homeowners Satisfaction ratings.
- Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength will not have issues paying out claims, regardless of the amount. However, companies with weak financial strength might not be able to pay out claims. We measured this using AM Best’s ratings, which specializes in assessing the financial strength of insurance companies.
- Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
About the Authors
Cynthia Paez Bowman is a contributing writer for Reviews.com. Over the last two years, she has covered insurance, home security and more. She has been featured in MSN, Bankrate, Coverage.com, The Simple Dollar and GOBankingRates. She has dual bachelors degrees in International Business and Journalism from American University in Washington, D.C. “Is It Getting Harder to Get Home Insurance in High-Risk Areas?” is Cynthia’s favorite story on Reviews.com.
