Best Home Insurance in New Jersey 2023

Homeowners insurance is essential in New Jersey, where storms are frequent and sometimes destructive. Fortunately, homeowners insurance in the Garden State is relatively cheap, costing an average $619.83 per year — about less than half the national average of $1,213.89. 

Although New Jersey homeowners generally enjoy cheaper rates, choosing the right insurance company can be challenging. After compiling thousands of quotes and considering customer satisfaction scores, we've highlighted the best homeowners insurance in New Jersey.

On This Page

• 

  Best Homeowners Insurance Companies in New Jersey

• 

  Cost of Homeowners Insurance in New Jersey

• 

  Homeowners Insurance Coverage in New Jersey

• 

  What New Jersey Homeowners Need To Know

• 

  How To Find New Jersey Home Insurance

• 

  Frequently Asked Questions

• 

  Find the Best Homeowners Insurance in the Garden State

Best Homeowners Insurance Companies in New Jersey

When rounding up the best homeowners insurance carriers, we considered overall customer satisfaction and rates. The premiums noted below are based on homes with a dwelling value of $250,000.

*Companies were chosen based on reviews and JD Power scores out of 1,000.

Best for Overall Customer Satisfaction: State Farm

State Farm is a top national insurance carrier and was rated among the five best for overall customer satisfaction in a 2021 homeowners insurance study by J.D. Power. Homeowners can expect to pay an annual premium of $1,052.36, on average, for a State Farm home policy. While State Farm is well-known for its easy online shopping experience, there are State Farm agents located in over 40 cities in New Jersey if you need a face-to-face experience.

• Discounts: Bundle with another policy; home security systems; impact-resistant roofing

Best for Optional Coverages: Allstate

A strong competitor to State Farm for service and overall customer satisfaction, Allstate is an excellent choice for homeowners insurance. Costing $1,152.74 per year, on average, customers also can upgrade their policy with extra coverage (at an additional cost). From scheduling high-value possessions, like antiques, jewelry and sports equipment to business property and identity theft coverage, policyholders can customize their coverages to their insurance needs. Allstate also offers green improvement reimbursement, which can help you recoup the costs of replacing damaged items with energy-efficient items following a covered loss.

• Discounts: Bundle with another policy; automatic payments; home security systems; early renewal

Best for Military Families: USAA

USAA is dedicated to serving active military and veterans with their insurance policies and exceptional service. Costing $1,148.05 per year, USAA home insurance is well above the state average but policyholders enjoy unique perks not available elsewhere. Specifically, active military enjoys property coverage worldwide while deployed. They also get their deductible waived if their military uniform or equipment is damaged or lost under a covered event, among other benefits.

• Discounts: Bundle home and auto insurance; home security systems; claims-free history

Best for Private Flood Endorsement: Narragansett Bay Insurance Company

Narragansett Bay Insurance Company (NBIC) is an insurance company that serves many East coast states. A homeowners insurance policy with NBIC costs, on average, $841.85 per year — just 36% above the statewide average. Where this insurance carrier shines is with their add-on flood policy. Typically, homeowners can buy a flood policy from a National Flood Insurance Program (NFIP)-affiliated agent or a private policy with their private insurer. NBIC offers the latter with competitive pricing, replacement cost policies and the convenience of having your coverages housed under one company.

• Discounts: New home, renovated home, home security systems

Cost of Homeowners Insurance in New Jersey

Homeowners insurance in New Jersey costs, on average $619.83 per year, for a home with a $250,000 dwelling value. This is 49% below the national average cost ($1,213.89 per year). Below, we've compiled quotes on homeowners insurance, which vary widely per insurance company, your home's dwelling value and its county.

Cheapest Homeowners Insurance Companies in New Jersey

We collected over 10,000 quotes from 19 insurance companies and found a wide range of annual insurance premiums. Cumberland Insurance Group offered the cheapest home insurance rates, on average, costing $477.13 per year — 23% below the statewide average. On the highest end was Homesite Insurance, costing a whopping $2,048.85 per year.

Average Cost by Dwelling Value

As you might expect, the higher your dwelling coverage, the more you'll pay in home insurance premiums. SmartFinancial compiled quotes for homes with dwelling values of $150,000, $250,00, $350,000 and $450,000. A home with $150,000 dwelling coverage typically costs $420.83 per year and will jump to $991.51 per year at a home with $450,000 dwelling value. Generally, you can expect to pay about an extra $200 annually, on average, at each level.

Average Cost by County

In our research, we surveyed quotes across 21 counties and found a wide range of premiums, but still within about $200 of the statewide annual average ($619.83). Homeowners in Warren County can expect to pay the least for homeowners insurance on average at just $415.66 per year ($34.64 per month). Cape May County yielded the most expensive home insurance quotes, costing $830.58 per year, on average.

New Jersey is among the smallest states and we were able to collect quotes across every county. However, keep in mind that the figures below are only a sampling and should be used for comparative purposes — actual rates will vary per person.

Compare Home Insurance Rates in New Jersey

Homeowners Insurance Coverage in New Jersey

Unless you buy a limited form of home insurance, such as an HO-1 or HO-2 policy (which are rare), you will typically benefit from a wide range of homeowners coverage from fire damage and windstorms to theft and falling objects. Flood and earthquake protection, however, are not considered standard coverage and you will need to buy a separate policy.

We've summarized the coverage options you'll see across most homeowners insurance policies. Optional coverages to plug the holes in your protection are also included.

What New Jersey Homeowners Need To Know

New Jersey residents are vulnerable to multiple types of perils but should be especially conscious of floods and wildfires.

Nor'easter and Floods

A Nor'easter is a storm of strong winds, snow and rain that occurs along the East Coast of North America. The entire state of New Jersey — especially homes along the coast —  is vulnerable to flooding often associated with Nor'easters.

Between 1954 and 2017, New Jersey has experienced six FEMA-declared Nor'easter-related disasters or emergencies. The 2009 Nor'easter inflicted heavy rain, severe beach erosion and tidal flooding that caused an initial estimate of $180 million in damages. 

While windstorm insurance is included in most homeowners policies, flood insurance is not. Since New Jersey is heavily prone to flooding, homeowners should consider buying flood coverage, especially if you're in an area with a high flood risk.

Wildfires

Beyond heavy storms and flooding, New Jersey homeowners also have wildfires to contend with. In 2016, 10,047 wildfires blazed across New Jersey, burning approximately 4,444 acres. Fortunately, fire damage is typically covered in most homeowners insurance policies, but you'll still want to double-check coverage with your insurance carrier — especially if you live in a high-risk area, like Ocean County and Burlington County.

How To Find New Jersey Home Insurance

Homeowners insurance is readily available from national carriers, like State Farm and Allstate, to regional carriers, like Narragansett Bay Insurance Company (NBIC). The real task is finding the right insurance carrier that matches your coverage needs and budget. Beyond rates, homeowners should also consider customer reviews and how that homeowners insurance company scores for customer service and loyalty.

Flood Insurance

Homeowners can purchase flood insurance typically in one of two ways: through the NFIP with an authorized adjuster or as a private policy with a private insurance company, such as NBIC. Policies purchased with the NFIP will carry the same rates and will not vary by the insurance agent you work with — eliminating the need to "shop around" for an NFIP flood policy.

Find the Best Homeowners Insurance in the Garden State

Since New Jersey is vulnerable to multiple types of perils, you'll want to choose the right company that will meet your coverage needs and budgets. Shopping for homeowners insurance can be a tedious process, especially if you call for quotes from each of the best options available. SmartFinancial can help streamline the shopping process by comparing rates and coverages from our 200+ insurance partners. Enter your zip code below and answer a few questions to receive your free home insurance quotes today.