Homeowners Insurance in Newark, New Jersey

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  • Homeowners Insurance in Newark, New Jersey

Homeowners insurance in Newark is vital for protecting your property in New Jersey’s most populous city. Just as you physically keep your home in order to care for it, you should financially safeguard it with the right insurance policy.

Homeowners insurance coverage protects you in multiple ways from several possible forms of damage. We made this guide to help Newark residents get the right coverage at the best price. Read on for information on average rates, cost factors, and lender requirements in the city.

How Much Is Homeowners Insurance in Newark, New Jersey?

The average cost of homeowners insurance in Newark is about $1,174 annually, which is right around the statewide average insurance cost of $1,123 for a policy.

New Jersey regularly ranks as one of the country’s most affordable states for home insurance, adding another attractive benefit to life in the Garden State. Coastal cities in New Jersey tend to have higher premiums due to their hurricane damage risk, and while Newark does have coastal access, it’s partially shielded by New York City.

The following table lists average home insurance premiums in New Jersey depending on your home’s value, which determines your dwelling coverage amount. Insurers generally calculate home value through its replacement cost, which is the amount it would cost to rebuild your home after damage. More expensive homes cost more to rebuild and need more insurance.

Average Cost of Homeowners Insurance in Newark
Dwelling Coverage $200,000 $300,000 $400,000
Annual Premium $829 $1,244 $1,659

Rates also vary by location within Newark because different places have different risk profiles. Some properties are more prone to property damage, like windstorms and theft. Your premium will also depend on the company you choose. 

Cheapest Homeowners Insurance in Newark

Chubb has the cheapest homeowners insurance in Newark of the carriers we analyzed. However, these are just averages. Rates vary by property and policyholder, so you may find differently when you get quotes.

Rates vary by the company due to differences in underwriting and business needs. This will result in different premiums for the same coverage among providers. So, you should always shop around and compare rates to find the best deal.

The following table lists four common home insurance companies in Newark and their average rates.

Average Rates of Homeowners Insurance Companies in Newark
Company Average Annual Rate
Chubb $908
New Jersey Manufacturers (NJM) $986
State Farm $1,047
USAA $1,191
Average $1,174

NJM differs slightly from companies on our list because it doesn’t offer nationwide coverage. It’s a regional carrier founded in New Jersey in 1913 and currently headquartered in West Trenton. You may prefer the customer service or procedures at smaller companies to larger ones, so be sure to get quotes from both types of firms when looking for insurance.

You can also consult a Newark home insurance agency for additional help finding the right coverage.

It’s Time to Switch Your Homeowners Insurance

We partner with the nation’s top homeowners insurance companies so you can get a custom policy at an affordable price.

Newark Homeowners Insurance Coverages

While Newark insurance rates vary depending on your carrier, the coverage you receive in a policy should remain the same. All home insurance plans are usually divided into six coverage areas based on their protection for your property and liability as follows:

Newark Homeowners Insurance Coverages
Coverage Definition
Dwelling Coverage Dwelling coverage covers your home’s physical structure, like the roof, walls, flooring, pipes, and wiring.
Other Structures Coverage Other structures coverage covers fixtures on your property that aren’t attached to your main house, such as fences, carports, detached garages, and sheds.
Personal Property Coverage Personal property coverage covers your belongings in and around your property, including electronics, clothing, furniture, tools, jewelry, and more.
Loss of Use Coverage Loss of use coverage covers your living expenses if you’re forced to move out of your home after it sustains significant damage. Your insurer can cover temporary lodging, gas, groceries, and more.
Liability Coverage Liability coverage covers your finances if you’re found legally liable for someone’s injuries or property damage. Your insurer can pay for medical bills, legal fees, and more.
Medical Payments Coverage Medical payments coverage covers minor medical expenses if someone gets hurt around your property without the need for legal intervention.

How to Get the Best Homeowners Insurance in Newark

The best homeowners insurance in Newark is any policy that meets all your coverage needs while staying within your budget. Every policyholder and property is different, so you should understand how your coverage works to tweak your plan to suit your circumstances.

You should also always shop around for the best coverage to guarantee you get a good deal and save money.

Determine Coverage Needs

You’re ultimately responsible for setting your coverage limits when getting a policy. Understand your home’s replacement cost and choose a dwelling limit accordingly. You can set your dwelling coverage amount to anywhere between 80% and 100% of your home’s value, and opting for higher limits will raise your rates.

We suggest making a home inventory to calculate how much personal property coverage you need. The total cost of your belongings is the exact number you can set your personal property limit. You should also note your liability limits. We typically recommend between $300,000 to $500,000 in liability coverage. Liability coverage is crucial if an accident occurs around your property, and you want enough protection to guard your assets wholly.

Shop Around

Once you know what you want in your policy, you should shop around to compare rates and find the best deal on Newark insurance. You won’t know which company has the best price until you check your options. Most policies are active for one year before they renew, and carriers reassess your risk profile and may raise rates at renewal time. You can shop around again around this time if you experience a rate increase.

You can also note the different discounts and their extents available among carriers. You may save more money through discounts at one company than another. Some common discounts include:

  • New home discount
  • Retiree discount
  • Military service discount
  • Security system discount
  • Bundling discount

What to Know About Flood Insurance in Newark

While on the topic of home protection, we want to mention that homeowners insurance doesn’t cover flood damage. Home insurance plans always exclude flooding by default.

Melting snow, thunderstorms, and even hurricanes can cause flood damage. In Newark, heavy rainfall causes certain areas to flood fairly regularly. Additionally, some properties along the Passaic River and Newark Bay are in federally designated flood zones.

You need flood insurance in Newark to protect your property from the potential damage of rushing and rising waters. The National Flood Insurance Program, administered by the federal government, is the largest flood insurer in the country and partners with many private carriers to distribute and service its policies. 

You can also compare your options with dedicated, private flood insurance companies, which are becoming more popular as technology improves. 

Stay Above Water With Flood Insurance

Do you want to pay for costly and common flood damage yourself or have an insurance policy pick up the tab?

Newark Home Insurance Cost Factors

Insurance companies can’t provide a policy to every person who wants one. Otherwise, they’d have no way of limiting claims payouts and go broke. Companies need to fully understand the risk of insuring their policyholders, so they analyze as many factors as possible about you to determine the risk of insuring you. The greater the risk, the higher the premiums.

Some of the critical factors that insurers consider relate to your property and policy details.

Property Characteristics

Your home’s age influences rates, as older homes generally have higher premiums. The older components and construction of an older home make it more vulnerable to property damage from storms and general wear and tear.

Insurers will also note the square footage of your home to help determine its replacement cost. Larger, nicer homes cost more to rebuild after damage. Thus, they need more insurance. 

Carriers will also ask about certain risks that can raise your premiums. Some companies consider historically aggressive dog breeds, like pit bulls and rottweilers, to be red flags as they increase your liability risk. Conversely, having a security system or deadbolt locks can reduce premiums. 

Policy Characteristics

Your policy’s details also affect your rates, as they often determine how much insurance you have. Opting for higher coverage limits or adding endorsements to your plan will raise premiums.

On the other hand, qualifying for discounts or raising your deductible will reduce insurance costs. Your deductible is the amount of money you must pay during an insurance claim, and you choose your deductible when quoting. 

Picking a high deductible makes you responsible for covering more damage out of your pocket, lowering the insurance company’s risk and reducing your premium payments.

Is Home Insurance in Newark Required?

No law requires homeowners insurance in Newark. However, mortgage lenders will require insurance as part of their loans. So, if you have a mortgage, you must have homeowners insurance for the life of the loan.

Lenders mandate home insurance to protect their investment in your property. If a fire, hurricane, or other covered peril destroys the property, the insurance policy reimburses you and your lender for the damages. 

If you let your coverage lapse during your mortgage, your lender will force place insurance on you. When you shop for coverage, you choose a policy that’s in your best interest. But, when your lender gives you force-placed coverage, the policy is what’s best for them, and it’s often more expensive and less protective than the coverage you can find on your own. 

We always recommend finding and maintaining your own property insurance in Newark and avoiding force-placed insurance. 

How to Get Homeowners Insurance Quotes in Newark

Getting the best home insurance in Newark may take some time when shopping around and comparing rates, but it’s well worth it to find quality coverage at a good price. If you want help during the process, you can consult an independent insurance agency, such as our Clovered team.

An independent agent partners with several carriers and can bring your best options to the table. You can use our online quoting engine to find a policy on your own time from the comfort of your home.

Or, if you’d rather speak with a licensed agent for your homeowners insurance quote in Newark, give us a call at 833-255-4117 during business hours. You can also email us at agent@clovered.com with any questions.

It's Time to Switch Your Homeowners Insurance

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.

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