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The Best Homeowners Insurance Companies in New Jersey

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    Reviews Report

    • New Jersey Manufacturers (NJM) is Reviews.com’s top pick for New Jersey home insurance, earning a 4.75 out of 5.00 score.
    • Based on our research, the cheapest home insurance provider in New Jersey is Selective Insurance, with an average premium of $389 per year.
    • 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. The average cost of homeowners insurance in New Jersey is $942 per year. If you’re in the market for home insurance, Reviews.com compared providers to make the shopping process easier.

    Our team used Quadrant Information Services to obtain 2021 premium 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 Members
    • 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

    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$450N/AA+N/A
    Pin USAA3.8$1,059889A++AA
    Pin Selective Insurance3.5$389N/AABBB
    Pin Chubb3.5$1,017778A++AA
    Pin State Farm2.8$869829A++AA

    Information accurate as of September 2021

    *Data provided by Coverage.com

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

    New Jersey Manufacturers

    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.
    • 4.75 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $450* Average Premium Pricing data comes from our partners at Coverage.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 Members

    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.
    • 3.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,059* Average Premium Pricing data comes from our partners at Coverage.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 the cheapest average premium for home insurance in New Jersey, just $389 per year, which is over $550 cheaper than the state’s average premium. Homeowners on tight budgets may want to get a quote from Selective.
    • 3.5 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $389* Average Premium Pricing data comes from our partners at Coverage.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 the cheapest average premium for home insurance in New Jersey, just $389 per year, which is over $550 cheaper than the state’s average premium. Homeowners on tight budgets may want to get a quote from Selective.

    Pros

    • Several endorsements available
    • Cheapest average premium in the state
    • 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.
    • 3.5 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1.017* Average Premium Pricing data comes from our partners at Coverage.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.
    • 2.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $869* Average Premium Pricing data comes from our partners at Coverage.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 $942 per year, according to 2021 data from 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

    Allstate $1,026 
    American Family $1,256 
    Chubb $1,017 
    New Jersey Manufacturers $450 
    Palisades $1,244 
    Preferred Mutual $718 
    Selective $389 
    State Farm $869 
    The Hanover $1,203 
    Travelers $763 
    USAA $1,059 

    Using Quadrant Information Services data from Coverage.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 $942 per year. However, homeowners may be able to find cheap home insurance rates, like $389 a year with Selective.

    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: $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).

    Top 3 Cheapest Homeowner Insurance Companies in New Jersey

    • Selective Insurance: $389
    • New Jersey Manufacturers (NJM): $450
    • Preferred Mutual: $718

    Top 3 Most Expensive Homeowner Insurance Companies in New Jersey

    • American Family: $1,256
    • Palisades: $1,244
    • The Hanover: $1,203

    Average Homeowner Insurance Costs by Age of Home in New Jersey

    Homeowner Insurance by Age of HomeAverage Annual Premium
    0-5 years$947
    5-20 years$942
    20-35 years$916
    35-50+ years$726
    Average Annual Premium Across Ages$883

    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:

    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.

    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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