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New Jersey homeowners insurance: what you need to know

The average cost of home insurance in New Jersey is fairly inexpensive at $522 per year or $43 per month. This is considerably cheaper than the national average. Residents in New Jersey pay 164% less for home insurance than the rest of the US. The best way to find a cheap home insurance policy in New Jersey is to view prices from as many insurance companies as possible.

Just like in other states, homeowners insurance in New Jersey isn't controlled by state legislation. Even so, major gaps exist in home insurance rates on a state-by-state basis. Policy prices in states may vary based on the total number and value of homeowners claims filed in that particular state, and depend on the value of the belongings and structures covered by the policy.

Learn more about average home insurance rates in the Garden State via the below datapoints. Individual rates may vary depending on coverage options and the value of the dwelling being insured.

 
Table of contents:
  1. Rates by company
  2. Rates by coverage amount
  3. Rates by deductible amount
  4. Rates by city
  5. Bundling savings
  6. Frequently asked questions
  7. Natural disaster coverage
 

The cheapest home insurance companies in New Jersey

Prices for home insurance in New Jersey vary depending on which insurance company you use. NJM underwrites the most affordable home insurance policies in New Jersey — only $522 each year. This compares favorably to the state average cost of $665, offering a $143 discount on rates typical to the state.

Start searching for an inexpensive home insurance policy by viewing average rates from top New Jersey companies, listed below.

 
AFFORDABLE HOME INSURERS IN NEW JERSEY
Insurance Company Average Annual Rate in New Jersey
NJM $522
New Jersey Skylands $527
Cumberland Mutual $532
Narragansett Bay $580
State Farm $739
 

New Jersey home insurance prices by coverage levels

The level of home coverage you select has an impact on the insurance premiums you pay. In New Jersey, maintaining $100K dwelling coverage costs an average of $443 per year, while carrying dwelling coverage up to $400K costs $1,240 per year.

 
POPULAR COVERAGE LIMITS IN NEW JERSEY
Coverage Level

Average Annual Cost

$100,000 Dwelling $443
$200,000 Dwelling $665
$250,000 Dwelling $834
$400,000 Dwelling $1,240
 

Homeowners insurance deductibles in New Jersey

Among the many choices homeowners face when shopping for homeowners insurance is where to set the deductible. A homeowners deductible is how much your insurance requires you to pay out of pocket toward a claim. Where you choose to set your homeowners deductible is linked to the overall cost of your coverage.

When deciding on a deductible, keep in mind that the higher your deductible is, the lower your insurance rates will be. As such, if you want lower insurance rates, aim for a higher deductible. Keep in mind that your deductible should only be set as high as you can reasonably afford in the event of a covered loss.

Have a look at some of the average deductibles offered by insurers and an estimate of what you can expect your premiums to be.

 
HOME INSURANCE PREMIUMS BY DEDUCTIBLE IN NEW JERSEY
Deductible Tier Average Annual Homeowners Insurance Rate
$500 $940
$1,000 $834
$1,500 $803
$2,000 $747
$5,000 $664

 

New Jersey homeowners insurance costs by city

Homeowners insurance rates vary depending on the city, town or village in which you live. Home insurance prices can vary based on local rating factors such as the likelihood of weather-related claims in the area, meaning your specific ZIP code impact how much you pay.

The cheapest home insurance in New Jersey is found in Mount Freedom. A typical home insurance term in the North Jersey community totals just $631 each year — $34 less than the average policy in other New Jersey cities. The below cities have the most affordable homeowners insurance in New Jersey.

 
CHEAPEST CITIES FOR HOMEOWNERS INSURANCE IN NEW JERSEY
City Average 12-Month Home Insurance Rate
Mount Freedom $631
Mendham $632
Long Valley $633
Hibernia $634
Flanders $635

 

Seeking information on homeowners insurance in a specific city? Check out our analysis of major New Jersey cities:

 

Home and auto insurance bundling in New Jersey

To trim a few dollars from your insurance costs, consider purchasing both your home and auto insurance policies from one company. Bundling home and auto insurance in New Jersey can lead to substantial savings on your auto insurance bill. Bundling policies in New Jersey leads to average annual savings of $120.

 
HOME AND AUTO BUNDLING DISCOUNTS IN NEW JERSEY

Avg. Annual Rate (No Bundle)

Avg. Annual Rate (w/ Bundle)

Annual Savings ($)

Annual Savings (%)

$1,511 $1,391 $120 9%

 


 

New Jersey homeowners insurance FAQs

 

Does GEICO have homeowners insurance in New Jersey?

Yes - GEICO offers homeowners insurance for homes located in New Jersey.

Is home insurance required in New Jersey?

Homeowners insurance is not required in New Jersey. However, your mortgage will require it. Even if you don't have a mortgage, it's smart to have homeowners coverage.

 

 
 

Natural disaster coverage in New Jersey

 

Does homeowners insurance cover hurricanes in New Jersey?

Since hurricanes can cause devastating destruction and destroy structures entirely, insurance companies remain unwilling to take on the full risk of hurricanes as a whole. If you reside in New Jersey, there could be increased risk of experiencing damage from hurricanes. In fact, 95,659 single-family homes are at extreme risk of hurricane damage in New Jersey.1

If you reside near the coast, it's of utmost importance to check and understand your homeowners policy because a basic policy won't be enough to cover the expenses of repairing damage caused by hurricanes — you would need to bolster your policy with flood and windstorm insurance, which would work in tandem to pay for repairs or replacements. In some states, your insurance company may make it compulsory to have a separate hurricane deductible if you reside in a region that's at high risk for hurricanes.

 
HURRICANE DEDUCTIBLE RATES IN NEW JERSEY
Company Average Annual Rate w/ Hurricane Deductible
Cumberland Mutual $528
NJM $550
Allstate $633
State Farm $643
Travelers $649
 

Does home insurance cover flooding in New Jersey?

Flood damage — whether the byproduct of a rainstorm or a hurricane —is not covered by home insurance. To ensure your home is covered, acquire flood coverage from a private flood insurance company or through the National Flood Insurance Program (NFIP).

Coverage details from private insurance companies vary. If you purchase flood insurance through NFIP, you'll receive:

  • $250,000 for your home’s structure
  • $100,000 for your personal property

If the value of your personal property and home exceeds these limits, consider purchasing a flood insurance policy from our partners at Neptune for additional protection.

Flood insurance is important in New Jersey, which paid out $26 million in flood insurance claims during 2016, according to the Federal Emergency Management Agency.2

 


 

Sources:

1Insurance Information Institute

2Federal Emergency Management Agency (FEMA)

 


 

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Ross Martin
Ross MartinManager, Content Quality

As a licensed insurance agent, Ross researches and writes insurance content intended to help users make informed decisions.

Ross's background is in writing and education. He holds a master's degree from Royal Holloway, University of London.

Ross's work has been cited by The New York Times, Investopedia, The Simple DollarThe BalanceCar and Driver and Fox Business. He has been quoted by CNET, I Drive Safely and Kin Insurance

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.

  • The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.

  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.

  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.