You are likely to make the largest financial investment you’ll ever make in your home. Whether you’re buying a starter home in Trenton, or a retirement home on Long Beach Township’s Jersey Shore, you should ensure that you have the best homeowners insurance available in New Jersey. Bankrate’s analysis of annual premiums found that the average cost for home insurance in New Jersey was $751 for $250,000 worth of coverage. Although this is significantly less than the national average cost of homeowners insurance, individual rates will depend on personal factors, such as location and age of the house, climatic conditions and the type of coverage chosen.
New Jersey’s top home insurance companies
While annual premium rates are important, you should also consider financial ratings and customer service. J.D. Power conducts an annual survey of homeowners and AM Best gives financial strength ratings to carriers.
We picked the best options for home insurance in New Jersey based on pricing, coverage options, third-party ratings and our experience in the insurance industry.
Allstate
Allstate has local agents throughout New Jersey, unlike other insurance companies that are more hands-off. 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 also offers a wide range of discounts, which could dramatically decrease your premium costs. Set up an automatic payment system and go claims-free. You can also install smoke alarms or burglar alarms at your home.
Manufacturers in New Jersey
NJM is a regional insurance company that offers several discounts, including one for seniors. You can personalize your policy by adding endorsements or riders for identity fraud, mold, rot, and enhanced protection for valuable items like furs and jewellery.
State Farm
State Farm’s A++ (superior rating) rating from AM Best means that State Farm is one the most financially sound homeowners insurance companies in New Jersey. State Farm is well-known for its home insurance coverage and affordable rates. You can also find helpful online resources to learn more about your policy.
USAA
USAA provides comprehensive homeowners coverage. USAA is a top-rated New Jersey home insurance company, but it’s only available for active military personnel and veterans.
What is the cost of homeowners insurance in New Jersey
New Jersey’s average homeowners insurance premium is $751 per annum. This is 43% lower than the national average of $1.312, making New Jersey one the most affordable states for homeowners insurance. It is much more affordable than the $969/year average rate in neighboring New York. And while it is slightly higher than Delaware’s, it is still comparable to Pennsylvania’s average rates.
New Jersey Home Insurance
New Jersey is susceptible to severe weather events all year. Strong hurricanes in the summer can have a negative impact on insurance premiums, especially in Jersey Shore communities. Nor’easters, severe storms caused by catastrophic winds and heavy snow and ice accumulation can cause roof damage in winter. New Jersey is also prone to tornadoes in the fall, spring and summer.
Common Loss Causes in New Jersey
The following are common property losses associated with New Jersey home insurance claims:
- Hurricanes and storms: New Jersey homeowners are most at risk from severe storms and hurricanes. As a coastal state that is in the direct line of impact of any hurricane moving up the east coast, home insurance losses due to wind and water damage are common. The torrential rainfall and subsequent flooding that come with summer storms and hurricanes are especially prevalent along the coast, of course, but may also impact residents who live near normally-placid streams or ponds. Nor’easters can cause severe wind damage and flooding. FEMA’s Flood Map Service Center in New Jersey can help residents determine if their home is on a floodplain and whether they may need flood insurance.
- Wildfires: Wildfires may affect those who live in the Garden State’s more rural areas. An average of 1,500 wildfires a year damage forests and the homes that are near them. This is particularly true for residents in the Pine Barrens region or the northern part the state. Fires can quickly spread because of dry underbrush.
Fortunately, New Jersey is not a high-risk state for earthquakes, although small tremblers occur occasionally. In 1938, a 4.8 earthquake was the most powerful ever recorded in New Jersey. New Jersey is far from tornado Alley in the Midwest. However, there are occasional tornado outbreaks in New Jersey, such as this July near the Delaware River.
New Jersey offers a variety of home insurance options
New Jersey, a coastal state is vulnerable because it sits on the Atlantic Ocean. The Insurance Information Institute (Triple I) estimates that nearly 100,000 single-family homes are at high risk for hurricane damage. According to the Triple-I, flooding is a major cause of natural disasters in America. Therefore, they recommend that all New Jersey residents have flood insurance.
Questions frequently asked
Which New Jersey insurance policy is the most affordable?
Rates for home insurance are subject to change due to factors like location and construction. To find the cheapest homeowners insurance in New Jersey, determine the amount of coverage you need and then shop around for the best combination of value and protection.
What are the biggest risks to New Jersey homeowners?
Year-round storms and hurricanes pose the greatest risk to New Jersey properties. You should have sufficient coverage to cover perils like flooding, hail, and wind damage.
What level of personal liability insurance should I buy?
When deciding how much personal liability coverage to purchase, consider the unique features of your home. For example, if you own a swimming pool and like to host pool parties, you probably need additional liability coverage in case someone sustains an injury on your property. Pay attention to the standard liability coverage amounts when you request insurance quotes. Standard coverages typically range between $100,000 and $500,000.
