Reviews Report
- NJM, USAA, Selective, Chubb, and State Farm made our list of top home insurance providers in New Jersey.
- Based on our research, the cheapest home insurance providers in New Jersey are NJM and Selective, with average premiums of $355 and $357 per year, respectively.
- 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. According to 2021 data from Bankrate.com, the average cost of homeowners insurance in New Jersey is $751 per year. If you’re in the market for home insurance, Reviews.com compared providers to make the shopping process easier.
Our team used Bankrate.com’s 2021 Quadrant Information Services 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-Focused Coverage
- 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
| 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) | $355 | N/A | A+ | N/A | |
| Pin USAA | $757 | 889 | A++ | AA | |
| Pin Selective Insurance | $357 | N/A | A | BBB | |
| Pin Chubb | $765 | 778 | A++ | AA | |
| Pin State Farm | $798 | 829 | A++ | AA |
Information accurate as of September 2021
*Data provided by Bankrate.com
**J.D. Power’s 2020 Home Insurance Satisfaction Study. Based on a 1,000-point scale.
New Jersey Manufacturers (NJM)
Best for Dividend Policies
Why we chose it
Why we chose it
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
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-Focused Coverage
Why we chose it
Why we chose it
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
Available Discounts
- Policy bundling
- Protective device
- Claims-free
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
Why we chose it
Pros
- Several endorsements available
- Cheap average premium
- Flood insurance policies available
Cons
- No online quotes
- Not rated by J.D. Power
- Few online tools and resources
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
Why we chose it
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
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
Why we chose it
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
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 $751 per year, according to 2021 data from Bankate.com and 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
| Insurance Company | Average Annual Premium* |
| NJM | $355 |
| Selective | $357 |
| Cumberland Grp | $371 |
| United Ins Holdings Grp | $501 |
| Preferred Mutual | $528 |
| NBIC Holdings Grp | $543 |
| Tower Grp | $622 |
| Travelers | $634 |
| Kingstone Ins Co | $643 |
| Franklin Mut Grp | $734 |
| USAA | $757 |
| Chubb | $765 |
| State Farm | $798 |
| Philadelphia Contributionship Grp | $823 |
| ARX Holding Corp Grp | $894 |
| Cabrillo Holding Grp | $903 |
| Palisades | $924 |
| Allstate | $951 |
| The Hanover | $1,017 |
| American Family | $1,142 |
*Based on $250,000 in dwelling coverage
Using 2021 Quadrant Information Services data from Bankrate.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 $751 per year. However, homeowners may be able to find cheap home insurance rates, like $355 a year with NJM.
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: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
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
- New Jersey Manufacturers (NJM): $355
- Selective: $357
- Cumberland Group: $371
Top 3 Most Expensive Homeowner Insurance Companies in New Jersey
- American Family: $1,142
- The Hanover: $1,017
- Allstate: $951
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:
- NJ Department of Banking and Insurance’s Consumer Home Insurance Guide
- NJ Department of Banking and Insurance’s Home Insurance Policy Summary
- NJ Department of Banking and Insurance’s Licensed Home Insurance Underwriters in New Jersey
- National Flood Insurance Program (NFIP) How to Buy Flood Insurance
New Jersey Home Insurance FAQ
Methodology
We evaluated the companies based on their third-party agency ratings for customer experience, financial stability, as well as coverage options to determine which might be the best providers.
To compare home insurance companies across the board, we considered the following factors:
- 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.
Rates are based on quoted annual premiums from Bankrate.com. These are sample rates and should be used for comparative purposes only. Your quotes may be different.
The coverage limits for home insurance rates reflect the following coverage and limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
About the Authors
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.
