Best and Cheapest Homeowners Insurance in New Jersey
- Best and Cheapest Homeowners Insurance in New Jersey
New Jersey’s proximity to New York City, Philadelphia, and other major northeast hubs means the state has a very large population and population density relative to its size. Therefore, owning a home in New Jersey is highly sought after.
The state consistently finds itself in the top half of the highest home price lists. Homeownership is a dream for many, and if you realize your dream by buying a house in New Jersey, you shouldn’t leave protecting such an investment up to chance.
New Jersey residents can also experience nor’easters, hurricanes, and tropical storms that can cause significant damage due to the state’s prominent Atlantic coastline.
Homeowners insurance is the best way to protect yourself and your property financially. Use this guide below to learn about the average home insurance cost in New Jersey, the best homeowners insurance companies in New Jersey, and much more.
How Much Is Homeowners Insurance in New Jersey?
Homeowners insurance in New Jersey costs about $1,123 for $300,000 worth of dwelling coverage. The cost of homeowners insurance in New Jersey will vary based on many factors.
You can see more examples of home average home insurance costs in New Jersey below. Generally, the more insurance you need, the more it will cost. This is why the average homeowners insurance in New Jersey increases as dwelling coverage increases.
Average Home Insurance Cost in New Jersey
Cost of House
What Does Homeowners Insurance in New Jersey Cover?
Home insurance policies come in different forms, which offer different coverages. The most common type of homeowners insurance in New Jersey is the HO3 form – the standard homeowners insurance form. HO3 forms contain the following coverages:
Coverage A: Dwelling
Dwelling coverage is designed to financially protect your home’s physical structure, including the roof, walls, floor, patio, and more. It also includes systems like your wiring and HVAC.
Coverage B: Other Structures
Other structures coverage covers features on your property not attached to your main house. Covered features include fences, sheds, detached garages, gazebos, and more.
Coverage D: Loss of Use
Loss of use coverage is applicable only after you’ve suffered damage. If you must move out of your house while your insurance company repairs your property, loss of use coverage can cover expenses you incur while you’re displaced. Your insurance company can pay for lodging, food, gas, and more up to your loss of use coverage limit.
Coverage E: Personal Liability
Personal liability coverage financially protects you if you’re found liable for an injury. Your liability coverage can cover medical costs and legal fees if someone pursues you for damages after they get hurt on your property. Personal liability can also cover dog bites.
Coverage F: Medical Payments
Medical payments coverage also covers injuries to visitors, but on a much smaller scale. Medical payment coverage is for minor injuries.
What Is the Best Homeowners Insurance in New Jersey?
The best homeowners insurance in New Jersey is the policy that covers your property and liability sufficiently at a price that works for you. Everyone’s individual insurance needs will vary based on their home and personal situation.
Here is an example of what the best homeowners insurance in New Jersey may initially look like if you have a $300,000 house:
Average Coverages in a $300,000 New Jersey Homeowners Insurance Policy
- Other Structures
- Personal Property
- Loss of Use
- Personal Liability
- Medical Payments
Amount of Coverage
Your dwelling coverage limit is based on the replacement cost of your home, which is what it would take to rebuild it from scratch. Carriers consider construction, labor, and material costs to determine this number.
Insurers typically set your other structures limit as 10% of your dwelling coverage. So, in our example above, the other structures limit is $30,000. After that, your coverage amounts are often more flexible.
You choose your personal property limits when you get a policy based on the value of your belongings. Insurers and agents recommend that you make a home inventory list to determine how much personal property coverage you need.
By default, a provider might recommend a limit of anywhere between 30% to 70% of your dwelling coverage limit. In our example, we went with a personal property coverage limit right in the middle at 50%, thus $150,000.
Loss of use coverage is often about 20% of your dwelling coverage. So, a $300,000 home might have $60,00 in loss of use coverage, illustrated in our example. You may be able to adjust your loss of use coverage depending on your carrier.
Personal liability limits are also very flexible. Insurers typically require that you carry at least $100,000 worth of liability coverage, but many plans default to $300,000 and go up to $1 million.
Raising your liability limits hardly affects your monthly or yearly premiums, so most insurance companies recommend carrying more than the minimum.
Medical payments coverage usually has limits that range between a few thousand dollars, and adjusting them doesn’t usually affect your premium much, if at all.
The above numbers may be what your policy coverages read at first, but you may want to further fine-tune your plan by increasing limits or adding endorsements.
For instance, some high-value belongings, such as jewelry and art, won’t be fully covered under your personal property coverage limits. This is because one piece of jewelry alone could cost several thousands of dollars. You may want to schedule certain items in your plan, which would fully cover them.
The Best Home Insurance Companies in New Jersey
State Farm, New Jersey Manufacturers (NJM), Allstate, Travelers, and Liberty Mutual are the largest home insurance companies in New Jersey. These are common picks for some of the best home insurance companies in New Jersey, but the best provider for you may not be the best for someone else, so it’s hard to recommend a general best option.
There are over 60 insurance companies that write policies in New Jersey. Some carriers may be able to meet your needs at a better rate than another company, which is why you must shop for policies and compare coverage options.
When looking for the best home insurance companies in New Jersey, you’ll want to compare customer service experiences, available coverages, and more in addition to their prices.
Which Companies Have Cheap Homeowners Insurance in New Jersey?
Based on our table below, Cumberland Mutual and New Jersey Manufacturers (NJM) offer relatively cheap homeowners insurance in New Jersey on average. We compared rates for five popular carriers in the state.
You pay home insurance monthly. The monthly rates for New Jersey home insurance range from about $60 to $111 per month in our table below.
Average Home Insurance Cost in New Jersey for a $300,000 House
Keep in mind that these are averages, and the cheapest homeowners insurance in New Jersey could vary based on several factors about you and your home that we’ll break down below.
Factors That Affect the Average Home Insurance Cost in New Jersey
Many factors outside your control can influence the average home insurance cost in New Jersey. These range from environmental variables to personal considerations like credit scores and claims history. Some important variables that affect the average homeowners insurance in New Jersey are:
- Amount of coverage you get
- Age of your home
- Location of your home
- Construction style of your home
- Your policy deductible
- Your credit and claims history
Insurance companies will look at many aspects of your property to determine how risky it is. Newer homes tend to have lower premiums since they’re up to the latest building and safety codes and all of their essential parts are newer (think roof, septic tank, air conditioner, and more).
Your home’s location, such as its susceptibility to flooding, hurricane, or tornado damage, is also a factor. For instance, homes on New Jersey’s Atlantic coast may be much more vulnerable to hurricane-force winds during storm season, which could cause these houses to have higher premiums.
The amount of coverage you choose in your policy is also crucial. As we discussed earlier, the higher limits and the more endorsements you get, the more you’ll pay. Also, raising or lowering your deductible will affect your premiums.
Personal factors about you can also influence your average home insurance cost in New Jersey. Your claims history plays a role. Someone who has filed several claims in the recent past may pay more than someone who has never filed a claim. You may also pay less for coverage if you bundle your coverage or have a good credit score.
Is Homeowners Insurance Required in New Jersey?
You aren’t required to have homeowners insurance by law in New Jersey. But, mortgage lenders can mandate that their lendees have home insurance policies for the life of the loan. If you don’t maintain your homeowners insurance, your lender can force place coverage onto you.
A mortgage lender often puts most of the money down on your house. They require homeowners to carry home insurance to protect their (and your) investment in your property. Thus, if a natural disaster destroyed your house, you and your lender can recoup the value of your house through your home insurance policy.
Forgoing or losing your insurance while you have a mortgage breaks the lenders’ terms, and your mortgage company will force-place insurance on your home. Force-placed insurance is more expensive and less comprehensive than the coverage you can get on your own, so stay on top of your policy.
New Jersey Homeowners Insurance Laws to Know
There are some New Jersey homeowners insurance laws, rules, and regulations that companies and policyholders should be aware of during their coverage. It’s especially useful to know all the rules of your contract if you file a claim.
Although there’s no timetable for how long a home insurance claim can take, New Jersey law states that a company must acknowledge a claim within 10 working days after receiving it. They must communicate with you throughout the process. And, you must do your best to act promptly and not worsen the damage you filed for.
When renewal time arrives, an insurer isn’t allowed to change your coverage terms, such as raising your rates, without written notice ahead of time along with the renewal offer. An insurer must notify you of changes at least 30 days before the renewal date, typically through the mail.
How to Get New Jersey Homeowners Insurance Quotes
Shopping around is essential when looking for the best homeowners insurance in New Jersey. We understand this at Clovered, so we make it easy to compare policies and get New Jersey homeowners insurance quotes.
Our proprietary quoting engine can help you shop around online. You can compare plans from one of our many well-known insurance partners with just a few clicks.
We partner with the nation's top homeowners insurance companies so you can get a custom policy at an affordable price.
The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.