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The Best Homeowners Insurance Companies in New Jersey

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    Reviews Report

    • NJM, USAA, Selective, Chubb, and State Farm made our list of top home insurance providers in New Jersey.
    • Based on our research, the cheapest home insurance providers in New Jersey are NJM and Selective, with average premiums of $355 and $357 per year, respectively.
    • If you’re a new homeowner, State Farm could be a great choice, due to its online tools and resources.

    New Jersey home insurance isn’t a legal requirement, but if you have a mortgage, buying and maintaining a policy is probably a condition of your loan terms. According to 2021 data from Bankrate.com, the average cost of homeowners insurance in New Jersey is $751 per year. If you’re in the market for home insurance, Reviews.com compared providers to make the shopping process easier.

    Our team used Bankrate.com’s 2021 Quadrant Information Services data and a unique in-house methodology to compare discounts, coverage, and third-party evaluations to rank and review the best home insurance in New Jersey. Based on our comparison, we found that New Jersey Manufacturers (NJM), USAA, Selective Insurance, Chubb, and State Farm are among the best home insurance carriers in the state.

    The 5 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-Focused Coverage
    • Selective Insurance: Best New Jersey Home Insurance for Homeowners on a Budget
    • Chubb: Best Best New Jersey Home Insurance for High-Value Homes
    • State Farm: Best New Jersey Home Insurance for New Homeowners

    Compare the Best New Jersey Home Insurance Companies

    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)$355N/AA+N/A
    Pin USAA$757889A++AA
    Pin Selective Insurance$357N/AABBB
    Pin Chubb$765778A++AA
    Pin State Farm$798829A++AA

    Information accurate as of September 2021

    *Data provided by Bankrate.com

    **J.D. Power’s 2020 Home Insurance Satisfaction Study. Based on a 1,000-point scale.

    New Jersey Manufacturers (NJM)

    Best for Dividend Policies

    Why we chose it

    NJM is one of the few home insurance companies that offers dividend policies, which can help New Jersey homeowners recoup some of their paid premiums at the end of the year.
    • $355* Average Premium Pricing data comes from our partners at Bankrate.com.
    • N/A** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A+ AM Best Rate 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.

    Why we chose it

    NJM is one of the few home insurance companies that offers dividend policies, which can help New Jersey homeowners recoup some of their paid premiums at the end of the year.

    Pros

    • Affordable average premiums
    • Opportunity to receive dividends
    • Wide variety of endorsements

    Cons

    • Not rated by J.D. Power
    • Fewer online tools and resources than some competitors
    Read More

    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
    • Fungi, wet/dry rot, and bacteria coverage
    • Supplemental loss assessment coverage
    • Water backup and sump pump coverage
    • Earthquake insurance

    More NJM Insurance Reviews

    USAA

    Best for Military-Focused Coverage

    Why we chose it

    USAA is a highly-rated home insurance company in New Jersey, with excellent customer service, good coverage options, and affordable rates for active duty and retired military personnel.
    • $757* Average Premium Pricing data comes from our partners at Bankrate.com.
    • 889** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A++ AM Best Rate 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.

    Why we chose it

    USAA is a highly-rated home insurance company in New Jersey, with excellent customer service, good coverage options, and affordable rates for active duty and retired military personnel.

    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
    Read More

    Available Discounts

    Additional Coverage

    • Home sharing insurance
    • Identity theft coverage
    • Earthquake insurance
    • Flood insurance
    • Military uniform coverage
    • Valuable personal property coverage

    More USAA Insurance Reviews

    Selective Insurance

    Best for Homeowners on a Budget

    Why we chose it

    According to our research, Selective has one of the cheapest average premiums for home insurance in New Jersey, just $357 per year, which is almost $400 cheaper than the state’s average premium. Homeowners on tight budgets may want to get a quote from Selective.
    • $357* Average Premium Pricing data comes from our partners at Bankrate.com.
    • N/A** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A AM Best Rate 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.

    Why we chose it

    According to our research, Selective has one of the cheapest average premiums for home insurance in New Jersey, just $357 per year, which is almost $400 cheaper than the state’s average premium. Homeowners on tight budgets may want to get a quote from Selective.

    Pros

    • Several endorsements available
    • Cheap average premium
    • Flood insurance policies available

    Cons

    • No online quotes
    • Not rated by J.D. Power
    • Few online tools and resources
    Read More

    Available Discounts

    • Multi-policy
    • Home protection systems
    • Quote in advance
    • Responsible payer

    • Service line coverage
    • Identity theft coverage
    • Home cyber protection
    • Home systems protection
    • Selective Edge endorsement policy

    Chubb

    Best for High-Value Homes

    Why we chose it

    Chubb is one of the best insurance providers for high-value homes in New Jersey, with high available policy limits, unique specialty coverage options, efficient claim handling, and free services, like risk consulting.
    • $765* Average Premium Pricing data comes from our partners at Bankrate.com.
    • 778** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A++ AM Best Rate 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.

    Why we chose it

    Chubb is one of the best insurance providers for high-value homes in New Jersey, with high available policy limits, unique specialty coverage options, efficient claim handling, and free services, like risk consulting.

    Pros

    • Coverage options for high-value homes
    • Variety of unique coverage types
    • Policies come standard with a range of extra coverage

    Cons

    • No online quote tool
    • Below-average customer satisfaction rating
    Read More

    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

    State Farm

    Best for New Homeowners

    Why we chose it

    State Farm has excellent online tools, resources, and calculators, which makes it a great option for first-time home insurance buyers in New Jersey, who may need help selecting the right type and amount of coverage for their needs.
    • $798* Average Premium Pricing data comes from our partners at Bankrate.com.
    • 829** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.
    • A++ AM Best Rate 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.

    Why we chose it

    State Farm has excellent online tools, resources, and calculators, which makes it a great option for first-time home insurance buyers in New Jersey, who may need help selecting the right type and amount of coverage for their needs.

    Pros

    • Robust and user-friendly website
    • Detailed online quotes
    • Helpful tools and resources for first-time home insurance buyers

    Cons

    • Not many discounts
    • Below-average claims satisfaction reviews
    Read More

    Available Discounts

    • Multi-policy
      Home safety device
      Impact-resistant roof

    Additional Coverage

    • Replacement cost coverage
    • Identity restoration coverage
    • Water backup coverage
    • Earthquake insurance
    • Ordinance/law coverage
    • Personal articles coverage

    More State Farm Insurance Reviews

    Average Cost of Homeowners Insurance in New Jersey

    The average cost of home insurance in the Garden State is $751 per year, according to 2021 data from Bankate.com and Quadrant Information Services.

    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.

    Average Premium From Homeowners Insurance Companies in New Jersey

    Insurance CompanyAverage Annual Premium*
    NJM$355
    Selective$357
    Cumberland Grp$371
    United Ins Holdings Grp$501
    Preferred Mutual$528
    NBIC Holdings Grp$543
    Tower Grp$622
    Travelers$634
    Kingstone Ins Co$643
    Franklin Mut Grp$734
    USAA$757
    Chubb$765
    State Farm$798
    Philadelphia Contributionship Grp$823
    ARX Holding Corp Grp$894
    Cabrillo Holding Grp$903
    Palisades$924
    Allstate$951
    The Hanover$1,017
    American Family$1,142

    *Based on $250,000 in dwelling coverage 

    Using 2021 Quadrant Information Services data from Bankrate.com, we analyzed home insurance companies in the United States and compared the best homeowners insurance rates in New Jersey. We found that the average premium for home insurance in New Jersey is $751 per year. However, homeowners may be able to find cheap home insurance rates, like $355 a year with NJM.

    These are sample rates and should be used for comparative purposes only. Your quotes may be different.

    The coverage limits in the methodology are as follows:

    • Coverage A, Dwelling: $250,000
    • Coverage B, Other Structures: $25,000
    • Coverage C, Personal Property: $125,000
    • Coverage D, Loss of Use: $50,000
    • Coverage E, Liability: $300,000
    • Coverage F, Medical Payments: $1,000

    The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

    Top 3 Cheapest Homeowner Insurance Companies in New Jersey

    • New Jersey Manufacturers (NJM): $355
    • Selective: $357
    • Cumberland Group: $371

    Top 3 Most Expensive Homeowner Insurance Companies in New Jersey

    • American Family: $1,142
    • The Hanover: $1,017
    • Allstate: $951

    New Jersey Home Insurance Considerations

    New Jersey’s coastal position puts homes at risk for damage caused by hurricanes, flooding, storm surges, and high winds. Although home insurance may cover most of these perils, it’s important to understand the potential risks.

    Basic home insurance policies are fairly comprehensive and cover a long list of common losses. You can check your policy’s declaration page to see which perils are covered. However, home insurance policies do not typically cover damage caused by floods. While other types of water damage may be covered, you’ll likely need to buy a separate policy for flood insurance. Many companies can assist you in purchasing coverage through the National Flood Insurance Program (NFIP), and there are some insurance companies that sell their own flood insurance. 

    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.

    Helpful Resources for New Jersey Homeowners

    Before you purchase home insurance in New Jersey, you might want to consider reviewing these state-sponsored resources for more information:

    New Jersey Home Insurance FAQ 

    Methodology 

    We evaluated the companies based on their third-party agency ratings for customer experience, financial stability, as well as coverage options to determine which might be the best providers. 

    To compare home insurance companies across the board, we considered the following factors:

    • 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.

    Rates are based on quoted annual premiums from Bankrate.com. These are sample rates and should be used for comparative purposes only. Your quotes may be different.

    The coverage limits for home insurance rates reflect the following coverage and limits:

    • Coverage A, Dwelling: $250,000
    • Coverage B, Other Structures: $25,000
    • Coverage C, Personal Property: $125,000
    • Coverage D, Loss of Use: $50,000
    • Coverage E, Liability: $300,000
    • Coverage F, Medical Payments: $1,000

    The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

    About the Authors

    Cate Deventer

    Cate Deventer Insurance Editor

    Cate Deventer is a writer and licensed insurance agent. She has a Bachelor’s degree in theatre and is currently pursuing a degree in English with a concentration in professional and technical writing from Indiana University East. Her work has been featured on Reviews.com and Bankrate.com, and she’s passionate about helping people take charge of their finances. In her free time, she likes to read thrillers and sci-fi novels, garden, and toss tennis balls for her dog.

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