Best Homeowners Insurance in New Jersey (2024)
- Expertise: Auto insurance, home insurance and renters insurance
- Education: Sonoma State University (BA in English)
Aaron Besson has worked at LendingTree for more than seven years and has been a staff writer for the last five years. He specializes in producing research-backed content about auto, home and renters insurance. Aaron enjoys the deep dig into insurance data to get the right answers to hard questions. His work has been cited by CBS, iHeart Radio, the Sacramento Bee and Yahoo.
If you’re looking for homeowners insurance in N.J., you’ll probably find the best combination of cost, coverage and customer satisfaction at NJM (New Jersey Manufacturers). However, Allstate is actually cheaper, at an annual average rate of $1,028.
New Jersey’s cheapest home insurance companies
If price is your top concern, know that Allstate is New Jersey’s cheapest home insurance company, averaging $1,028 a year. NJM is the second-cheapest, at $1,137 a year on average.
By comparison, New Jersey’s average home insurance rate is $1,744 a year
Cheapest companies in New Jersey
| Company | Average annual rate |
|---|---|
| Allstate | $1,028 |
| NJM | $1,137 |
| State Farm | $1,211 |
| Chubb | $1,441 |
| Fidelity | $1,726 |
| N.J. state average | $1,744 |
| Progressive | $2,414 |
| Foremost | $3,276 |
| USAA* | $1,720 |
*USAA is only available to active-duty and veteran military members and their families.
Best homeowners insurance companies in New Jersey
NJM has the best overall combination of home insurance cost, customer satisfaction and coverage in New Jersey.
Allstate, meanwhile, has the cheapest rate, at an average of $1,028 a year.
State Farm has the best discounts for home insurance in New Jersey, while Chubb is best for luxury homes, and USAA is best for military members and their families.
Best New Jersey home insurance companies
| Company | Average annual rate | Overall satisfaction (higher is better) | Complaint index (lower is better) |
|---|---|---|---|
| Best overall: NJM | $1,137 | NA | 0.04 (above average) |
| Cheapest rate: Allstate | $1,028 | 868 (below average) | 1.81 (above average) |
| Best for luxury homes: Chubb | $1,441 | 876 (above average) | 0.09 (above average) |
| Best for military: USAA | $1,720 | 899 (above average) | 0.50 (above average) |
| N.J. state average | $1,744 | 869 | 1.0 |
Sources: J.D. Power’s 2024 Property Claims Satisfaction Study and 2023 complaint data from the National Association of Insurance Commissioners (NAIC).
Best overall: NJM
NJM has an average home insurance rate in New Jersey of $1,137 a year. This is the second-cheapest rate in New Jersey after Allstate.
NJM also has the best complaint index rating, 0.04, of the companies we looked at in New Jersey.
| Pros | Cons |
|---|---|
Home insurance rate below state average Good complaint index rating Good add-on selection | Limited online resources Coverage may not be available in all parts of New Jersey No J.D. Power overall satisfaction rating |
Cheapest rate: Allstate
Allstate has an average homeowners insurance rate of $1,028. This is 41% cheaper than the New Jersey average rate of $1,744 a year.
| Pros | Cons |
|---|---|
Good discounts Identity theft coverage Water backup coverage No banned dog list | Below-average customer satisfaction rating Below-average complaint index rating No extended replacement cost coverage |
Best for luxury homes: Chubb
Chubb specializes in providing coverage of luxury homes. It offers benefits such as extended replacement cost coverage beyond your policy limit, offering cash payout instead of paying for repairs and the ability to use your own contractor.
| Pros | Cons |
|---|---|
Extended replacement cost coverage Good customer satisfaction and complaint index ratings You can use your own contractor on claims | Comparatively low number of discounts Eligibility for coverage may be based on home value |
Best for active military: USAA
USAA offers home insurance tailor-made for Armed Forces members. For example, you won’t have to pay a deductible for losses of personally owned military items and uniforms.
| Pros | Cons |
|---|---|
Excellent customer satisfaction rating Easy online quote process Personal property coverage at replacement cost | Eligibility restricted to active-duty and retired military, as well as tamilies No dedicated agents |
New Jersey home insurance rates by coverage amounts
The higher your dwelling coverage limit, the higher your premium usually is.
For instance, there’s a $378 a year difference in cost between New Jersey’s average rate for a policy with $350,000 dwelling coverage ($1,533 a year) versus a $450,000 dwelling coverage policy ($1,911 a year).
Roughly speaking, the additional $100,000 coverage adds an extra $32 a month to your premium.
Average annual rate by dwelling coverage
| Dwelling coverage limit | Average annual rate |
|---|---|
| $350,000 | $1,533 |
| $400,000 | $1,744 |
| $450,000 | $1,911 |
Cost of homeowners insurance in New Jersey
The average cost of home insurance in New Jersey is $1,744 a year, which is 38% lower than the national average home insurance rate of $2,801.
There are other factors insurers will look at when calculating your home insurance quote, such as:
- Your ZIP code
- Age of the house
- Quality of construction materials used
- Your insurance history
- Your chosen coverage limits and deductible
Standard home insurance policies can be pretty similar from company to company. So why the difference in cost? This is in part because homeowners insurance companies place different risk values on different factors.
For example, one company may think your neighborhood is at a higher risk for extreme weather damage than another company would, and it may raise your rates based on that.
With this in mind, it’s in your best interest to compare multiple home insurance quotes side-by-side in order to get the best combination of cost and coverage for your specific needs.
New Jersey home insurance rates by city
Of the 15 largest cities in New Jersey, Clifton residents pay the cheapest average home insurance rate of $1,432 a year. Toms River has the highest average rate of $2,419 a year.
Home insurance rates by city
| City | Average annual rate |
|---|---|
| Bayonne | $1,757 |
| Brick | $2,109 |
| Camden | $1,800 |
| Cherry Hill | $1,731 |
| Clifton | $1,432 |
| East Orange | $1,731 |
| Edison | $1,491 |
| Elizabeth | $1,649 |
| Jersey City | $1,942 |
| Lakewood | $1,757 |
| Newark | $1,804 |
| Passaic | $1,636 |
| Paterson | $1,679 |
| Toms River | $2,419 |
| Trenton | $1,807 |
Methodology
The rates shown in this article are based on non-binding quotes collected from Quadrant Information Services. Your rates may vary. Average rates were compiled from rates in New Jersey.
The following coverages and deductible were used unless otherwise noted:
- $400,000 dwelling coverage
- $40,000 other structures
- $200,000 personal property
- $80,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible
*USAA is only available to active-duty and veteran military members and their families.