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Written by Ashlyn Brooks
Edited by Lisa McArdle
Reviewed by Mark Friedlander
Edited by Lisa McArdle
Reviewed by Mark Friedlander
Updated Sep 01, 2024
USAA, Allstate, Travelers, State Farm and NJM are among the best home insurance carriers in New Jersey.
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Residents of the Garden State will find that New Jersey's average home insurance rate stands favorably below the national average of $2,285 for $300,000 in dwelling coverage. In fact, the typical rate for homeowners insurance in New Jersey hovers around $1,149 annually, which translates to approximately $96 monthly. However, it's essential to recognize that the cost is just a piece of the puzzle when identifying the ideal insurance for your residence.
Guided by our expertise in the home insurance sector — both within the state and nationally — Bankrate's editorial team analyzed New Jersey's insurance landscape using various metrics, from average rates to customer service evaluations and financial strength indicators. From it, we narrowed down the best homeowners insurance in New Jersey.
- Best home insurance companies in New Jersey: USAA, Allstate, Travelers, State Farm and NJM
- Average cost of home insurance in New Jersey: $1,149 per year
- Cheap home insurance companies in New Jersey: NJM, Travelers and USAA
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- Compare the best home insurance companies in New Jersey for 2024
- Best New Jersey homeowners insurance companies in detail
- Additional New Jersey home insurance companies to consider
- Cheapest home insurance companies in New Jersey
- Best home insurance discounts in New Jersey
- How much is home insurance in New Jersey?
- What does home insurance cover in New Jersey?
- Additional home insurance coverage types in New Jersey
- Frequently asked questions
- Methodology
- Methodology
Compare the best homeowners insurance companies in New Jersey
The average cost of New Jersey home insurance is $1,149 annually for $300,000 in dwelling coverage. This works out to roughly $96 per month. Your own rates are likely to differ from this based on factors that are unique to you and your property, such as the age and condition of your home, as well as your ZIP code and credit-based insurance score.
USAA, Allstate and Travelers earned the top Bankrate Scores on our list, which are out of a total of five points and based on our extensive analysis of third-party ratings such as the J.D. Power 2023 Home Insurance Study, premium data obtained from Quadrant Information Services and other factors. State Farm and NJM were not far behind. State Farm scored well in customer service satisfaction based on J.D. Power rankings and NJM features one of the cheapest average home insurance rates in New Jersey.
Insurance company | J.D. Power | Average monthly premium | Average annual premium | |
---|---|---|---|---|
USAA | 881 /1,000 | $86 | $1,034 | |
Allstate | 809 /1,000 | N/A | N/A | |
Travelers | 790 /1,000 | N/A | N/A | |
State Farm | 829 /1,000 | $107 | $1,281 | Read ReviewArrow Right |
NJM | Not rated | $60 | $721 | Read ReviewArrow Right |
*Premiums are for $300K in dwelling coverage **USAA not officially ranked by J.D. Power due to eligibility restrictions
Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Sep 2024
Read our full methodology
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Bankrate's trusted insurance industry expertise
The home insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers information they need to make educated decisions when shopping for home insurance.
46
years of industry expertise
122
carriers reviewed
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ZIP codes examined
1.2M
quotes analyzed
The top 5 home insurance companies in New Jersey
Best for military-focused coverage
4.7
4.7
Rating: 4.7 stars out of 5 Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings. Bankrate Score
USAA ReviewGet a personalized quote
Avg. premium for $300K dwelling
$86/mo
Avg. premium for $300K dwelling
$1,034/yr
Customer satisfaction
881/1,000
Why USAA made our list: USAA provides comprehensive homeowners coverage with a list of discounts and coverage that is tailored to the needs of military members. While USAA is not eligible for official ranking due to its membership requirement, the company generally receives some of the highest scores out of the rated New Jersey home insurers, and it received one of the highest customer satisfaction scores in J.D. Power’s 2023 Home Insurance Study. However, home insurance through USAA is only available to its members, and membership is limited to active-duty military, veterans and their eligible family members.
Who USAA may be good for:Service members who are stationed at Fort Dix, McGuire or any ofNew Jersey's other military installationsmay benefit from USAA insurance coverage. Coverage is military-focused, and includes, for example, coverage specifically for uniforms.
Pros
- Unique coverage options tailored for military needs
- Consistently high J.D. Power customer satisfaction scores
Cons
- Strict eligibility requirements
- Primarily does business over the phone and online, so may not be the best choice for shoppers who prefer to do business in person with an agent
USAA, renowned for its tailored services to military personnel and their families, extends beyond just standard home insurance offerings.
- Flood insurance:Safeguards against water damage not covered by standard home policies, especially critical in flood-prone areas.
- Identity theft protection:Adds coverage for recovering stolen personal information and related expenses.
- Valuable personal property:Increase personal property limit for high-value items like jewelry, artwork and antiques
New Jersey city
USAA avg. annual premium for $300K dwelling
Elizabeth
USAA avg. annual premium for $300K dwelling
$914
Jersey City
USAA avg. annual premium for $300K dwelling
$1,016
Paterson
USAA avg. annual premium for $300K dwelling
$914
Edison
USAA avg. annual premium for $300K dwelling
$891
Lakewood
USAA avg. annual premium for $300K dwelling
$1,037
Best for discounts
4.2
4.2
Rating: 4.2 stars out of 5 Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings. Bankrate Score
Allstate ReviewGet a personalized quote
Avg. premium for $300K dwelling
Not available
Avg. premium for $300K dwelling
Not available
Customer satisfaction
809/1,000
Why Allstate made our list:While some other insurance companies take a low-touch approach to customers, Allstate operates local agencies throughout New Jersey. Allstate also makes the claims process easy, giving you the option to call their nationwide claims center, contact your local agent or file from your smartphone using the Allstate mobile app. Allstate offers a wide range of discounts, which could dramatically decrease your premiums. You could earn discounts by setting up an automatic payment system, going claims-free, installing smoke or theft alarms in your home and evenup to a 10 percent welcome discountjust for switching to the homeowners insurance company from another insurer. However, Allstate’s premiums are higher than average, so depending on your discount eligibility, it may not be the best fit for homeowners who prioritize cheap rates.
Who Allstate may be good for:Even though Allstate's average rate is on the high side, the company's extensive discount list may make it a good option for those looking for cheap New Jersey homeowners insurance companies. Since home insurance quotes in New Jersey are free, there's no harm in seeing if the company can offer you a low rate with multiple discounts.
Pros
- Long list of potential discounts
- Company offers many different ways to communicate, including local agents, a mobile app, website and contact centers
Cons
- Average premium higher than the New Jersey average
- Scored lower than segment average for customer satisfaction per J.D. Power
Allstate offers a myriad of specialized coverages to match individual needs.
- Yard and garden coverage:Covers landscaping and garden equipment, including plant life, offering enhanced protection against various perils.
- Electronic data recovery:Provides coverage to retrieve lost personal computer data, such as photos or digital files.
- Water backup:Covers damage from backed-up drains or sump pump overflows
New Jersey city
Allstate avg. annual premium for $300K dwelling
Elizabeth
Allstate avg. annual premium for $300K dwelling
N/A
Jersey City
Allstate avg. annual premium for $300K dwelling
N/A
Paterson
Allstate avg. annual premium for $300K dwelling
N/A
Edison
Allstate avg. annual premium for $300K dwelling
N/A
Lakewood
Allstate avg. annual premium for $300K dwelling
N/A
Best for green homes
4.1
4.1
Rating: 4.1 stars out of 5 Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings. Bankrate Score
Travelers ReviewGet a personalized quote
Avg. premium for $300K dwelling
Not available
Avg. premium for $300K dwelling
Not available
Customer satisfaction
790/1,000
Why Travelers made our list:In addition to low average premiums, Travelers offers a wide range of potential discounts, including asavings of up to 5 percent for LEED-certified homes. In addition, Travelers offers a unique endorsem*nt option that covers the extra cost associated with repairing or rebuilding a home using green materials. If you don’t need coverage options for an environmentally-friendly home build, Travelers also offers coverage for jewelry and valuable items, identity fraud and a personal articles floater. However, before buying, you may want to consider that Travelers received a low customer satisfaction score from J.D. Power, and ranked far below the segment average in theJ.D. Power 2023 U.S. Insurance Digital Experience Study.
Who Travelers may be good for:If environmental issues are high on your list of priorities, Travelers might be worth looking at. Even if you don't currently live in a certified green home, you may want to consider the green endorsem*nt, which will allow you to rebuild using green materials after a claim.
Pros
- Endorsem*nt options available for green homes
- Average premium lower than other companies we studied
Cons
- Low customer satisfaction scores as assessed by J.D. Power
- Digital tools may be subpar based on the results of J.D. Power’s most recent Digital Experience Study
Travelers offers a range of supplementary coverage options to add on to its standard policy.
- Equipment breakdown:This offers protection against sudden mechanical or electrical breakdown of equipment at home, such as AC systems or appliances.
- Green home coverage:If your home is certified green, this coverage aids in repairing, rebuilding or replacing with green materials after a claim.
- Jewelry and valuable items:Offers specialized protection for prized possessions, covering them against scenarios not included in the standard policy.
Best for local offices
4.2
4.2
Rating: 4.2 stars out of 5 Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings. Bankrate Score
State Farm ReviewGet a personalized quote
Avg. premium for $300K dwelling
$107/mo
Avg. premium for $300K dwelling
$1,281/yr
Customer satisfaction
829/1,000
Why State Farm made our list:State Farm is known for offering a wide range of home insurance coverage types and helpful online resources where you can learn more about what your homeowners insurance policy covers. For those who like a more personal touch, there arehundreds of State Farm officeslocated throughout New Jersey. However, budget-conscious shoppers may notice that State Farm's average rates are on the high side. Additionally, the company has an overallhigher-than-baseline number of complaintswith the National Association of Insurance Commissioners (NAIC).
Who State Farm may be good for:If you'd rather handle your insurance business with a local agent who understands the needs of your community, State Farm may be a good choice for you. Having said that, the company also has a robust set of digital tools, including a mobile app, that make it easy to do your business online.
Pros
- May not be the cheapest option
- More overall complaints with the NAIC than some competitors
Cons
- Strict eligibility requirements
- Primarily does business over the phone and online, so may not be the best choice for shoppers who prefer to do business in person with an agent
State Farm doesn’t note as many coverage options as other carriers on our list, but it does offer a few:
- Boat insurance:Protects your watercraft against common risks on and off the water, covering physical damage, liability and more
- Inflation protection:Automatically adjusts the dwelling coverage limit annually in line with inflation
- Personal articles policy: Extends beyond the standard coverage to protect valuables such as musical instruments and cameras against theft or damage
New Jersey city
State Farm avg. annual premium for $300K dwelling
Elizabeth
State Farm avg. annual premium for $300K dwelling
$1,281
Jersey City
State Farm avg. annual premium for $300K dwelling
$1,650
Paterson
State Farm avg. annual premium for $300K dwelling
$1,530
Edison
State Farm avg. annual premium for $300K dwelling
$993
Lakewood
State Farm avg. annual premium for $300K dwelling
$1,517
Best for affordable rates
4.5
4.5
Rating: 4.5 stars out of 5 Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings. Bankrate Score
NJM ReviewGet a personalized quote
Avg. premium for $300K dwelling
$60/mo
Avg. premium for $300K dwelling
$721/yr
Customer satisfaction
Not rated
Why NJM made our list:NJM offers an average home insurance rate that is less than half the state average. The West Trenton, N.J.-based company is a regional insurer that offers several discount options, including one for seniors and others for installing storm shutters and hurricane-resistant glass. These discounts may be attractive to New Jersey residents who experience storms and hurricanes sweeping in from the Atlantic Ocean. You can personalize your homeowners insurance policy by adding endorsem*nts, or riders, for identity fraud, mold and rot and increased personal property coverage for expensive items such as furs and jewelry. However, NJM is not scored by J.D. Power.
Who NJM may be good for:For first-time homeowners who are on a stricter budget after their large investment, NJM might be worth considering. It offers solid coverage options, but at an average rate that is well below the state average.
Pros
- Low average premiums
- As a New Jersey-based insurer, may be more in tune with the local market
Cons
- Not scored by J.D. Power due to its smaller size
- Few digital tools, and no full-service mobile app
NJM offers a suite of optional coverage options to enhance its standard home insurance protection.
- Scheduled personal property:Provides higher limits of protection for items like jewelry, fur and silverware
- Identity fraud expense:Kicks in to help homeowners recover expenses needed to recover their identity after fraud
- Credit card, fund transfer card, forgery, and counterfeit money:Increases the maximum limit of your home insurance policy to cover you if you experience financial fraud
New Jersey city
NJM avg. annual premium for $300K dwelling
Elizabeth
NJM avg. annual premium for $300K dwelling
$522
Jersey City
NJM avg. annual premium for $300K dwelling
$880
Paterson
NJM avg. annual premium for $300K dwelling
$890
Edison
NJM avg. annual premium for $300K dwelling
$631
Lakewood
NJM avg. annual premium for $300K dwelling
$727
Additional New Jersey home insurance companies to consider
Beyond the most popular picks, there are several other carriers that offer home insurance quotes in New Jersey that might resonate with specific homeowner needs and preferences. Whether you prioritize customer service, tailored policies or unique offerings, these options may warrant a closer look.
Progressive
Progressive review
Homeowners looking for an expansive range of options
Progressive offers an expansive range of home insurance options suitable for the varied needs of New Jersey residents. Its policies may be beneficial for those seeking bundled insurance options, given Progressive's wide array of insurance offerings. If you have multiple insurance needs, Progressive might be an apt choice for robust coverage and potential discounts.
The Hanover
The Hanover review
Homeowners looking for a blend of modern and traditional coverage options
Founded in 1852, The Hanover has a longstanding history in insurance. Its home insurance offerings are comprehensive, aiming to cater to a broad spectrum of homeowners. Those looking for a blend of traditional coverage options and modern policy additions may find The Hanover to be a suitable choice. With its reputation for responsive customer service and its ability to adapt policies based on individual needs, many New Jersey residents may find The Hanover to be an attractive option when seeking coverage.
How Bankrate chose the best home insurance companies in New Jersey
Bankrate took a data-based approach to finding the best homeowners insurance in New Jersey.. Our insurance editorial team analyzed the largest home insurance companies by market share across multiple categories, including: customer satisfaction rankings from J.D. Power, financial strength rating from AM Best, the most recent premium data from Quadrant Information Services, policy offerings and discount options.
Based on their performance in these categories, each of these New Jersey homeowners insurance companies earned a Bankrate Score, with a maximum score of five points. Using our Bankrate Score can help give you an idea of which insurance companies have competitive home insurance policies and can be used to compare home insurance carriers to each other.
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Cheapest home insurance companies in New Jersey
New Jersey homeowners may be pleasantly surprised to discover several insurance options that are both comprehensive and affordable. While coverage needs and individual circ*mstances play a role in pricing, some companies consistently stand out for offering competitive rates. Below, we've compiled a table highlighting cheap home insurance companies in New Jersey that are typically recognized for their budget-friendly home insurance packages.
Carrier | Monthly premium for $300k coverage | Annual premium for $300k coverage | Savings vs state avg. for $300k coverage |
---|---|---|---|
Selective | $40 | $476 | - $673 |
Cumberland Mutual Fire | $56 | $671 | - $478 |
NJM | $60 | $721 | - $428 |
US Coastal | $75 | $901 | - $248 |
Philadelphia Contributionship | $86 | $1,027 | - $122 |
*based on $300K dwelling coverage
Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of Sep 2024
Read our full methodology
How to get cheap New Jersey home insurance
When you are looking for the best New Jersey homeowners insurance, cost is likely to be one of your considerations. Finding a policy that provides robust coverage at a reasonable price is not impossible, especially if you consider using some of these tactics:
- Shop around: You don’t have to settle for the first quote you get. Experts suggest getting quotes from multiple insurers so you can compare prices. Each insurer has its own way of calculating premiums, so you might find big differences in rates. Then, you can choose the cheapest option.
- Improve your credit score: In many states like New Jersey, insurers look at your credit-based insurance score to set your rate. Studies have found that people with lower credit scores tend to make more claims. So, if your insurer considers your credit-based insurance score, having poor credit could mean higher premiums for you.
- Maintain or replace your roof: Roof damage often leads to expensive insurance claims. That's why insurers usually ask about the age of your roof when you ask for a quote. A newer roof might get you a lower rate because it's less likely to get damaged in storms or high winds.
- Bundle your policies: Most insurers offer discounts if you buy more than one policy from them. The most common way to do this is by getting both your home and car insurance from the same company. By bundling, you could save up to 20 percent or even more.
Best home insurance discounts in New Jersey
In New Jersey, homeowners typically have access to a variety of insurance discounts that can significantly reduce their premiums. By understanding and taking advantage of these common discounts, residents might be able to save a considerable amount on their home insurance policies.
Anything you do to make your home safer, such as installing smoke detectors, theft prevention systems or sprinklers, could earn you a discount with many insurers due to the decreased claim risk.
Statistics show that house fires happen more often when there is a smoker in the house. If all the residents of your home are nonsmokers, you may net some savings.
The frequency of storms coming off the coast in New Jersey could make having reinforced home materials a good cause for savings from insurers. You may receive a discount from some insurers if you install impact-resistant glass in your windows.
If you make one annual payment of your entire premium for the year, your insurer may reward you with a discount. If you have a mortgage, your premium is most likely paid in full by your lender through an escrow account.
Senior-aged New Jersey residents may earn a discount based on their age.
How to save on home insurance policy renewals in New Jersey
Yearly policy renewals offer an ideal time for New Jersey homeowners to reassess their coverage needs and seek out potential savings. Whether you're a new homeowner or have been residing in your home for years, there are always ways to potentially lower your premiums.
- Comparison shop: While loyalty to a single insurer might have its benefits, it can be a good idea to shop around and get quotes from multiple providers. Rates may vary, and another company could offer a better deal.
- Bundle your policies: Many insurance companies typically offer discounts when you bundle home insurance with other policies like auto or life insurance.
- Increase your deductible: If you can afford a higher out-of-pocket cost in the event of a claim, consider raising your deductible. A higher deductible usually means a lower premium.
- Ask about discounts: Whether it’s for having a newer home, security systems or being claims-free, always ask your insurer about available discounts you might qualify for.
- Maintain your home: Regular maintenance and repairs can decrease the likelihood of damage, and some insurers might reward that with reduced rates.
- Review your policy: Ensure you’re not over-insuring or under-insuring. Adjust your coverage to reflect the current value of your possessions and your home.
How much is home insurance in New Jersey?
The average premium cost for a homeowners insurance policy in New Jersey is $1,149 for $300,000 in dwelling coverage per year. This is significantly lower than the national average of $2,285, making New Jersey one of the most affordable states for homeowners insurance.
New Jersey has a lower cost of living compared to nearby states, which likely contributed to the lower cost of insurance. New Jersey’s average home insurance rates are especially affordable compared to the neighboring state of New York, which has an average home insurance cost of $1,733 per year for $300,000 in dwelling coverage. New Jersey’s average home insurance costs are about on par with the average cost of home insurance in Pennsylvania, which is $1,202 annually for the same coverage.
Insurance company | $150K | $300K | $350K | $450K | $750 |
---|---|---|---|---|---|
USAA | $669 | $1,034 | $1,142 | $1,359 | $1,969 |
Allstate | N/A | N/A | N/A | N/A | N/A |
State Farm | $836 | $1,281 | $1,418 | $1,741 | $2,565 |
NJM | $525 | $721 | $788 | $931 | $1,361 |
New Jersey homeowners insurance rates by city
Insurance rates can significantly vary even within state boundaries, influenced by city-specific conditions. Whether it's due to crime rates, proximity to hazardous zones or local building costs, every city in New Jersey might present a different premium. Below, we provide a map and a searchable data table to help you understand these city-by-city variations, giving you a clearer picture of potential rates in your ZIP code or another city in the Garden State you might be considering.
- Long Valley: $921 per year — 20 percent below state average
- Florham Park: $926 per year — 19 percent below state average
- New Vernon: $926 per year — 19 percent below state average
- Stirling: $926 per year — 19 percent below state average
- Chester: $926 per year — 19 percent below state average
- Brigantine: $1,765 per year — 54 percent above state average
- Atlantic City: $1,731 per year — 51 percent above state average
- Ventnor City: $1,711 per year — 49 percent above state average
- Margate City: $1,696 per year — 48 percent above state average
- Longport: $1,681 per year — 46 percent above state average
*Rates are for $300,000 in dwelling coverage.
What does home insurance cover in New Jersey?
In the dynamic climate of New Jersey, homeowners often find themselves facing a spectrum of risks, from Atlantic storms to winter freeze. Standard home insurance typically provides a safety net against a range of perils. Yet, given the state's unique challenges, it's essential for residents to understand what their policy covers. By doing so, they can identify potential gaps and consider additional coverage tailored to New Jersey's distinct conditions. Some commonly covered damages include:
- Storm and wind damage: Given its Atlantic coastline, properties in New Jersey may frequently be exposed to storm surges and strong winds.
- Fire and smoke damage: This standard coverage is essential, especially in densely populated areas where fires can spread quickly.
- Theft and vandalism: This coverage kicks in against damages from property crimes, which might be more prevalent in urban areas.
- Liability: Liability covers situations where someone is injured on your property or you cause damage to another's property.
- Water damage from internal sources: While flooding from external sources like storm surges might not be covered under a standard policy, damages from issues like burst pipes typically are.
- Weight of ice, snow or sleet: Given the state's cold winters, roofs and structures might suffer damage from the accumulation of snow or ice, which this coverage stands for.
Additional home insurance coverage types in New Jersey
As a coastal state, New Jersey sits perched on the Atlantic Ocean, leaving it vulnerable to specific risks. Hurricanes moving up the East Coast often bring damage to homes in the state, either from water damage or high winds. Wildfires are also not uncommon, especially in the northern parts of the state and the Pine Barrens. In many cases, these potential disasters are covered by a basic HO-3 policy, the most common kind sold. In other cases, such as flooding, you will need to purchase a separate policy to be covered. Here are common New Jersey endorsem*nts or policy types for you to consider:
- Flooding: New Jersey has around 630,000 properties that have a more than 26 percent chance of experiencing extreme flooding within the next 30 years, according to non-profit foundation Flood Factor. If you’re a homeowner in New Jersey, you may want to check if flood insurance is required in your home’s area. Flooding is not standard on a homeowner’s policy, so it may be worth considering whether or not it’s required.
- Sewage backup: According to New Jersey’s Department of Environmental Protection, excessive rain or snowmelt can overwhelm the capacity of sewer pipes and result in an overflow of untreated sewage and stormwater. You may want to consider sewage backup coverage to ensure you’re financially prepared in the event of standing water or sewage backup in your home, especially if you have a basem*nt.
- Identity theft: According to the Federal Trade Commission (FTC), fraud claims increased by more than 70 percent in 2021 compared to 2020. With financial crime through identity theft on the rise, some homeowners may want to add on identity theft coverage to their homeowners insurance policy.
Related content:
New Jersey flood insurancePreviously Read
Windstorm insurancePreviously Read
What is sewer backup insurance?Previously Read
Common New Jersey home insurance problems
Securing reliable home insurance in New Jersey isn't always a straightforward process. The state presents unique challenges for both homeowners and insurers. Navigating these issues can often feel overwhelming, but understanding them is the first step toward finding the right coverage. These are some of the common challenges faced by homeowners in New Jersey:
- Aging infrastructure: Many New Jersey homes, particularly in historic districts, are older and may be viewed as higher risk due to outdated electrical, plumbing and heating systems.
- Urban density: In densely populated areas, issues like fire can spread quickly, increasing risks and subsequently, insurance premiums.
- High property values: In certain upscale neighborhoods and coveted locations, the sheer value of homes can drive up the cost of coverage.
- Frequent weather-related claims: From winter storms to coastal weather events, New Jersey sees a range of meteorological challenges that can lead to increased claims, making some insurers hesitant to offer competitive rates.
New
Recent news in New Jersey homeowners insurance market
On July 3, 2023, New Jersey took a decisive step towards enhancing transparency in the homeowners insurance market. Governor Phil Murphy signed bill S3110/A4783, mandating sellers of property and landlords to disclose vital flood risk information to potential buyers and tenants. This bill, which comes in the aftermath of the devastating Tropical Storm Ida, necessitates the revelation of a property’s history of flooding, its flood risk and its location concerning flood zones.
This development is pivotal for the state's homeowners market. It means that future real estate transactions will be characterized by a higher degree of openness, potentially affecting property valuations in flood-prone areas. Additionally, with heightened awareness about flood risks, there might be an uptick in demand for flood insurance, possibly influencing premium rates and the array of insurance offerings in the state.
This legislation underscores the importance of safeguarding New Jersey residents as climate change exacerbates flooding events, ensuring they're well-equipped with the necessary information to make informed housing decisions.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze September 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates for our base profile are based on the following characteristics and coverage levels:
40 year old
Married male and female homeowners
2016 build year
Primary home
Good credit score
Clean claim history
Dwelling coverage
$300,000
Other structures coverage
$30,000
Personal property coverage
$150,000
Loss of use coverage
$60,000
Liability coverage
$500,000
Medical payment coverage
$1,000
The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Additional profiles:
- Coverage A, Dwelling:$150,000, $350,000, $450,000, $750,000
- Coverage B, Other Structures:$15,000, $35,000, $45,000, &75,000
- Coverage C, Personal Property:$75,000, $175,000, $225,000, $375,000
- Coverage D, Loss of Use:$30,000, $70,000, $90,000, $150,000
- Coverage E, Liability:$500,000
- Coverage F, Medical Payments:$1,000
Bankrate Scores
Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
5
Rating: 5 stars out of 5
Overall Score
Cost & ratings50%
Coverage & savings30%
Support20%
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company's true score in each category out of a possible five points.
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Written by
Ashlyn Brooks
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Ashlyn Brooks is a finance writer with more than half a decade of experience, known for her knowledge in areas such as taxes, insurance, investing, retirement, finance news, and banking products.