From coastal storms to a few high-crime areas, New Jersey homeowners have plenty to worry about when it comes to protecting their homes from the unexpected. Homeowners insurance can bring peace of mind, covering the costs to rebuild or replace the structure of your home and your belongings, among other benefits, in the case of disaster.
Since choosing thebest homeowners insurance providers is so crucial, it’s important to make an informed decision when choosing a company. We at the Guides Home Team researched and reviewed 35 home insurance companies and rounded up the top choices in the Garden State which include Lemonade, Allstate and Travelers.
Top Homeowners Insurance Providers in New Jersey
After in-depth research, we at the Guides Home Team found the following are New Jersey’s best homeowners insurance providers.
- Lemonade: Our overall top pick
- Allstate:Best for discounts
- Travelers:Best claim experience
- Progressive:Best for bundling home and auto
- Liberty Mutual: Best for finished basem*nts
- Hippo: Best for quick quotes
According to 2024 homeowners insurance data from Quadrant Information Services, the average cost of homeowners insurance in New Jersey is $1,215, which is lower than the average home insurance cost in the U.S. of $2,728.
| Provider | Annual Premium | JD Power | AM Best |
|---|---|---|---|
| Lemonade | $1,461 | NR | NR |
| Allstate | $1,477 | 809/1000 | A+ |
| Travelers | $1,158 | 790/1000 | A++ |
| Progressive | N/A | 791/1000 | A+ |
| Liberty Mutual | $1,068 | 789/1000 | A |
| Hippo | $2,348 | NR | A- |
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Lemonade
Best for first-time homebuyers
4.7
Cost: 4/5
Customer Experience: 4.9/5
Industry Standing: 3.5/5
Coverage: 4.6/5
Our Review
A.M. BestNRJ.D. PowerNRAnnual Cost$1,461
Why We Chose Lemonade
Accessibility and technological features are becoming increasingly important for homeowners. Lemonade allows policyholders to easily manage policies, submit fast claims and receive payments. Its advanced artificial intelligence software on the mobile app and website helps guide policyholders through signing up and filing a claim with a fast payout. The company also donates unused premiums to charities every year.
Lemonade is not rated by AM Best but carries an “A” (Excellent) financial stability rating from Demotech.
You can get an instant quote through Lemonade’ssign-up toolto see what your policy might look like.
Pros and Cons
Pros User-friendly mobile app for sign-up, policy management and claim filing Fast quote tool that takes less than two minutes Company regularly donates unused premium to charities chosen by policyholders Cons Has been in business for less than a decade Does not offer a local agent network, unlike some more established competitors
Discounts and Endorsem*nts
Discounts:Proximity to fire station and hydrants, building frame type, gated community, home safety features, fire alarms
Additional coverage options:Specific coverage for high-value items including fine art, bikes, cameras and musical instruments; water backup, unmarried significant other coverage, swimming pool liability
Allstate
Best for discounts
4.5
Cost: 4.6/5
Customer Experience: 4.3/5
Industry Standing: 4.3/5
Coverage: 4.6/5
Our Review
A.M. BestA+J.D. Power809/1000Annual Cost$1,477
Why We Chose Allstate
To be a top provider, a homeowners insurance provider must display quality in all of our key metrics during our in-depth review process. Allstate did just that with its outstanding performance in customer service, reputation, standard coverage, discount opportunities and additional coverage options. The company also offers a worthwhile claim RateGuard that can protect your policy premium from increasing after filing a claim.
Pros and Cons
Pros Unique discount for backup generators Basic quote includes water backup Claim RateGuard can keep premiums from increasing after claims Cons Prices can be high for basic policies
Discounts and Endorsem*nts
Discounts:Auto-pay, welcome discount for new customers, loyalty, bundling with other policies, on-time payment, claim-free history, protective devices like alarms, backup generator
Additional coverage options:Identity theft, water backup, roof surfaces extended coverage endorsem*nt, building codes, jewelry, watches, furs
Travelers
Best claim experience
4.5
Cost: 4.5/5
Customer Experience: 4.9/5
Industry Standing: 4.3/5
Coverage: 4.4/5
A.M. BestA++J.D. Power790/1000Annual Cost$1,158
Why We Chose Travelers
We highlight the deductible options from Travelers because it gives homeowners the opportunity to customize how much they want to spend on premiums. If you select a $10,000 deductible from the company’s list of nine options, your policy premium will be considerably lower than it would be with a smaller deductible. Additionally, it offers a benefit that decreases the deductible by $100 without raising the annual premium each year that you keep the policy.
Pros and Cons
Pros Decreasing deductible add-on benefit 24/7 claims support service Company has been in business 168 years Cons Some customers have complained about mobile app functionality Fewer discounts may be available than with other companies
Discounts and Endorsem*nts
Discounts:Claims history, renewing policy early, protective devices like alarms, bundling with auto insurance
Additional coverage options:Roofing and siding matching, equipment breakdown, replacement cost, identity theft
Progressive
Best for bundling home and auto
4.3
Cost: 4.4/5
Customer Experience: 4.2/5
Industry Standing: 4.3/5
Coverage: 4.6/5
Our Review
A.M. BestA+J.D. Power791/1000Annual CostN/A
Why We Chose Progressive
Although Progressive doesn’t write its own homeowners insurance policies, it features an online tool to find the best partner company for potential customers. The sample quote we received was taken from Homesite, one of Progressive’s underwriting providers. The underwriting partnership can confuse the customer service and claims processes. Still, it may be worth it for those who already have a Progressive car insurance policy to access some of the best home-and-auto-bundle discounts and benefits.
Pros and Cons
Pros Basic quote includes replacement cost for dwelling and personal property Well-known and experienced brand HomeQuote Tool compares rates from multiple underwritten policies Cons Sells home insurance underwritten by other carriers Quote tool requires Social Security number
Discounts and Endorsem*nts
Discounts:Auto-pay, pay-in-full discount, paperless billing, home and auto bundling, construction age
Additional coverage options:Water backup and personal injury liability
4.4
Cost: 4.4/5
Customer Experience: 4.7/5
Industry Standing: 4/5
Coverage: 4.6/5
Our Review
A.M. BestAJ.D. Power789/1000Annual Cost$1,068
Why We Chose Liberty Mutual
While most home insurance providers offer some discounts, Liberty Mutual goes above and beyond, offering nearly a dozen ways to save. From enrolling in autopay to keeping a security system in your home, Liberty Mutual incentivizes you to save by taking preventative steps against home loss or damage. You might also be able to claim a special discount by having a roof inspection that predicts your chance of sustaining wind damage. These discounts can quickly stack up, helping make sometimes-expensive home insurance more affordable.
Additionally, unlike most competitors, Liberty Mutual’s home insurance covers your belongings at replacement cost, meaning it will pay you the cost for a new item rather than the value of your used item minus depreciation.
Pros and Cons
Pros Live chat helps homeowners during the quote process Offers a 10% discount for shopping online Inflation protection add-on that adjusts replacement cost coverage each year to account for inflation Cons Lower deductible options than many competitors Fewer add-on options than many other insurers
Discounts and Endorsem*nts
Discounts:Claims-free, security system, early shopper, newly purchased home, newly renovated home, new roof, wind mitigation credit, multi-policy bundling, insured to value, prepared payment and paperless policy
Endorsem*nts:Hurricane damage, water backup, additional living expenses and inflation protection
Hippo
Best for quick quotes
4.1
Cost: 4.1/5
Customer Experience: 4.5/5
Industry Standing: 3.6/5
Coverage: 4.4/5
Our Review
A.M. BestNRJ.D. PowerNRAnnual Cost$2,348
Why We Chose Hippo
If you’re moving into your new home sooner rather than later, you might need to sign onto coverage quickly. Hippo stands out thanks to its easy and intuitive online quote process. Simply answer a few questions about yourself and your property on the company website, and you will see a list of quotes from Hippo’s trusted partners. You can then directly compare quotes from a few top providers in your area, click on the coverage that fits your needs, and take advantage of Hippo’s unique, tech-forward bonuses and endorsem*nts.
Pros and Cons
Pros Easy, streamlined quote system can offer quotes in 60 seconds Offers extended coverage for tech and domestic workers Unique discounts for both new and experienced homeowners Cons Brokers insurance services through partners Online quotes not available in all zipcodes
Discounts and Endorsem*nts
Discounts: Early bird, recent home purchase, no mortgage, homeowner’s association member and home security systems
Endorsem*nts: Home office, domestic worker liability coverage, water backup, extended electronics coverage, extra coverage for jewelry and watches, and equipment breakdown
Factors That Affect Home Insurance Rates in New Jersey
Several factors impact home insurance rates in New Jersey, including the risk of natural disasters, crime rates and other property-related factors.
- Location: If your property is in coastal areas like Atlantic City or the Jersey Shore, it is more vulnerable to natural disasters like hurricanes and flooding. This will cause insurers to consider it risky to provide you with a policy and charge higher rates. If you live in a flood-prone area, you might have to purchase a flood endorsem*nt, adding to your overall premium cost.
- Crime rate: An area’s crime rate also affects how much you pay for home insurance. For instance, if you live in a region with a higher crime rate like Camden, Newark or Trenton, expect to pay higher insurance rates due to an increased risk of theft and vandalism.
- Property age and condition: Older homes are generally expensive to insure because they could require more maintenance and frequently face issues related to plumbing and electrical systems. In New Jersey, older homes are common in historical areas like Princeton and Morristown.
- Fire protection services: Rural areas generally have limited access to fire protection services, which can increase your home insurance rates.
- Credit score and claims history: Besides property-related factors, your credit score and claims history also affect your home insurance costs. These factors help insurers determine how risky you are to insure.
Average Cost of Homeowners Insurance in New Jersey
The average cost of homeowners insurance in New Jersey is $1,215 which is lowerthan the national average of $2,728 according to our analysis of homeowners insurance premiums using data provided by Quadrant Information Services. The annual cost of homeowners insurance can vary greatly based on your specific location which can cause your home to be more or less susceptible to risk. Use the charts below to determine the average cost in your specific area before getting quotes from multiple providers.
Cheapest Homeowners Insurance in New Jersey
Cumberland Mutual is the cheapest homeowners insurance company in New Jersey at $724 per year on average. Get a quote from at least three providers in your area to determine which is the right fit for your unique needs before making a final decision.
We at the Guides Home Team gathered 2024 home insurance quotes for the providers in this article using data from Quadrant Information Services. Quadrant is a leading source of property and casualty insurance solutions and data.
Our sample homeowner is a 40-year-old single male with good credit and no prior claims history. Our sample policies featured a $1,000 deductible and the following coverage and limits:
- Dwelling: $350,000
- Other Structures: $25,000
- Personal Property: $150,000
- Loss of Use: $50,000
- Liability: $300,000
- Medical Payments: $1,000
For each provider, we gathered a quote for 50% of the ZIP codes in every state it is licensed in. We used the most populous ZIP codes for our study. We took the average of these individual quotes to calculate national and state average premiums for each provider. Our sample rates are for informational purposes only. Actual premiums will vary.
Common Causes of Home Insurance Claims in New Jersey
The most common home insurance claims in New Jersey are related to severe natural weather events and crimes like theft.
Wind Damage
New Jersey’s coastal areas are prone to strong winds. Data from the National Oceanic and Atmospheric Administration (NOAA) shows there were more than 500 thunderstorm wind events reported in the last five years. You can properly seal your doors and windows to protect against wind damage. You can also use storm shutters or impact-resistant windows.
Flooding
Based on data from NOAA, there were 54 flooding events in New Jersey during the last five years. These events generally cause significant damage and are often a result of heavy rainfall or storm surges. Since a standard home insurance policy does not cover flooding, you must purchase a separate flood policy or an endorsem*nt for sufficient protection. You can seal basem*nt walls and install sump pumps to minimize flood risk.
Theft
Crime data from the New Jersey government shows 12,983 burglary incidents in the state in 2020. To protect against theft, you can enhance your property's security system, which includes installing alarms, motion detectors, surveillance cameras and deadbolt locks on doors. These measures might also help you lower your premiums as most insurers offer discounts for improving your home's security.
Recommended Home Insurance Coverage in New Jersey
Most standard home insurance policies cover your property’s structure against damages from perils like fire, wind or hail. Home insurance also covers theft or damage to your personal items, liability costs in case someone is injured on your property and additional living expenses if your home becomes uninhabitable.
However, since you face unique risks while living in New Jersey, we recommend adding these endorsem*nts to your policy:
- Flood insurance
- Additional windstorm coverage
- Enhanced theft protection
- Ordinance or law coverage
How To Save Money on New Jersey Home Insurance
The average cost of home insurance in New Jersey is lower than the national average, but you can lower your premium even further. We explain some ways to save money on home insurance in the Garden State below.
See if You Qualify for Discounts
Generally, every home insurance provider offers various policy discounts. The following discounts are the easiest to qualify for and can result in significant savings.
- Multi-policy bundling: You can lower your premiums if you buy different insurance policies from the same company and take advantage of a bundling discount.
- Protective devices: Most insurers offer a discount for installing devices that make your home safer, which include fire alarms, smoke detectors and burglar alarms.
- New homebuyer: You can save on your premiums if you have recently purchased a new property.
- Pay-in-full: It’s possible to qualify for a discount if you pay your annual premium in a lump sum rather than in monthly installments.
- Claims-free: Most insurance providers will offer you a discount if you have not filed a claim for a specified period, generally three years.
Compare Quotes From Various Providers
Before you finalize an insurer, obtain quotes from various providers and compare rates. Each insurer evaluates your application differently and determines rates based on several factors. Shopping around and comparing rates ensures you get the best deal based on your needs and specific situation.
Determine the Right Amount of Coverage
To save money on your policy, avoid over-insuring your home and opt for the right coverage amount based on your situation. When determining the right amount of coverage, the most important factor to assess is your property’s replacement cost, not its market value. In other words, consider how much it would cost to rebuild your home after a total loss. It is also important to regularly review and adjust your policy, especially after new home improvements, to ensure you have enough coverage.
Implement Wind Damage Protection Measures
Wind damage is a significant cause of home insurance claims nationwide, and New Jersey is at risk due to its coastal location. If you implement protection measures against wind damage, you can save on your policy. Protection measures include upgrading to wind-resistant roofing materials, installing storm shutters, securing external structures, regularly trimming trees and removing debris.
More Resources for New Jersey Homeowners
- Home Warranty New Jersey
- Moving Companies New Jersey
- Pet Insurance New Jersey
- Solar Incentives New Jersey
- Solar Panel Cost New Jersey
Frequently Asked Questions
Homeowners insurance covers damages and losses due to unexpected events or perils such as a theft or a natural disaster. Standard policies are typically broken up into coverage categories including dwelling, other structures, additional living expenses, personal property, personal liability and medical payments to others. Each coverage type comes with an associated limit that will be paid out by the provider through the policy.
These are only five out of dozens of homeowners insurance companies that sell policies to New Jersey residents. Other providers available in the state include USAA, Geico, State Farm, Chubb and Nationwide.
Since pricing is different for every homeowner,getting a quoteis an important part of determining the cheapest home insurance policy for you.
Yes, damage from snowstorms that isn’t preventable is typically covered under a standard homeowners insurance policy. However, if snowfall or ice causes your roof to leak due to poor maintenance, normal wear-and-tear or corrosion, your policy probably won’t cover the claim.
Home insurance typically covers hurricanes, but it may have a separate deductible. Hurricane deductibles apply to windstorm damage from sustained hurricane-force winds (74 mph or greater) that impact any area of the Garden State; this deductible (separate from the standard deductible) typically runs 2-5% of home replacement coverage value.
Flood insurance is typically a separate policy but may be added as an endorsem*nt to your home insurance policy (depending on your insurer), or purchased through the federally-backed National Flood Insurance Program.
Other Insurance Resources From MarketWatch Guides
Read our comprehensive guides on the following insurance categories to find top providers and peace of mind that you have all aspects of life covered.
- Leading Pet Insurance Companies
- Top Travel Insurance Companies
- Best Homeowners Insurance Providers
- Leading Renters Insurance Companies
- Affordable Renters Insurance Providers
- Top Term Life Insurance Providers
- Budget-friendly Homeowners Insurance Companies
Methodology: Our system for ranking the best home insurance companies
Our team surveyed dozens of home insurance providers and created a scoring system to assess and compare each company’s quality and service. Here are the factors that account for our provider scores according to our home insurance rating methodology:
- Coverage (28%): We analyze the comprehensiveness of each provider’s standard home insurance policy and compare optional policy endorsem*nts to determine the quality of coverage.
- Cost (27%): We compare cost data for homes nationwide to assess how competitively priced each provider is. We also consider each company’s available discounts when determining its overall cost of coverage.
- Availability and ease of use (25%): We evaluate each company’s customer service options, such as live chat, a customer support phone line, and multiple channels for filing claims and generating quotes. Similarly, we score providers based on their digital resources, such as a mobile app or online customer portal.
- Brand trust (20%): We gauge reputation by evaluating consumer reviews and third-party financial strength and customer experience ratings, including from J.D. Power, AM Best and customer review aggregators.
Companies with the best customer service exhibit 24/7 availability, useful digital tools and a quick claims-filing process. Providers that offer extensive discount options, endorsem*nts, customizable coverage options and unique features score significantly higher than those that don’t, putting them toward the top of our recommendations to readers.
AM Best Disclaimer
If you have feedback or questions about this article, please email the MarketWatch Guides team at [email protected].
