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The Best Homeowners Insurance Companies in New Jersey

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    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

    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$522N/AA+N/A
    Pin USAA3.8$803889A++AA+
    Pin Selective Insurance3.5$372N/AABBB
    Pin Chubb3.5$633778A++AA
    Pin State Farm2.8$724829A++AA
    Pin Progressive3.25$788797A+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.

    New Jersey Manufacturers

    Best for Dividend Policies

    Why we chose it

    NJM is one of the best 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.
    • $522* 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 best 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 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
    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
    • 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

    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.
    • $803* 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 Flood Insurance

    Why we chose it

    If you’re in the market for flood insurance, we recommend Selective, which has dedicated flood insurance agents, online claim submissions, and helpful resources for New Jersey homeowners.
    • 3.5 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $372* 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

    If you’re in the market for flood insurance, we recommend Selective, which has dedicated flood insurance agents, online claim submissions, and helpful resources for New Jersey homeowners.

    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
    Read More

    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
    Chubb

    Best for High-Value Homes

    Why we chose it

    Chubb is the best insurance provider for high-value New Jersey homes, with high policy limits, unique specialty coverages, efficient claim handling, and free services, like hurricane damage assessments.
    • 3.5 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $633* 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 the best insurance provider for high-value New Jersey homes, with high policy limits, unique specialty coverages, efficient claim handling, and free services, like hurricane damage assessments.

    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
    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
    • Water backup 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 that 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.
    • $724* 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 that 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
    • Discounts are not available in every state
    • 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
      Flood insurance
      Water back up coverage
      Earthquake insurance
      Ordinance/law coverage
      Inflation coverage
      Personal articles coverage

    More State Farm Insurance Reviews

    Progressive

    Best for Discounts

    Why we chose it

    If you want to save money on your home insurance premium in New Jersey, Progressive is one of the best options, with a wide variety of discounts to help you get a better rate.
    • 3.25 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $788* Average Premium Pricing data comes from our partners at Coverage.com.
    • 797** 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

    If you want to save money on your home insurance premium in New Jersey, Progressive is one of the best options, with a wide variety of discounts to help you get a better rate.

    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
    Read More

    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 CompaniesAverage 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 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

    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:

    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

    Elizabeth Rivelli Contributing Writer

    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.

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