The Best and Cheapest Homeowners Insurance Companies in New Jersey (2026)
NJM has the best home insurance in New Jersey for most people, at $1,036 per year. | ||
Home insurance in New Jersey costs an average of $1,449/yr. | ||
People living along the Jersey Shore tend to pay the most for home insurance, with average rates up to $2,484/yr. |
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Who has the best cheap home insurance in New Jersey?
Who has the cheapest home insurance in New Jersey?
Cumberland Mutual has the cheapest home insurance in New Jersey, at an average of $918 for $350,000 of coverage.
That's 37% cheaper than average statewide and $118 per year less than the second-cheapest option, NJM.
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Cumberland Mutual home insurance is usually 31% to 59% cheaper than the NJ state average, depending on how much coverage you need.
For example, a policy with $350,000 in dwelling coverage. costs around $896 per year at Cumberland Mutual. That's around 40% of the state average.
- However, Narragansett Bay tends to have the cheapest rates for homes on the coast. For instance, people living in Brigantine pay an average of $929 per year for home insurance from Allstate. That's less than half the city average.
Cheap annual home insurance quotes in NJ
$200,000
$350,000
$500,000
$1 million
Company | Annual rate | ||
|---|---|---|---|
| Cumberland Mutual | $598 | |
| Allstate | $695 | |
| NJM | $709 | |
| State Farm | $721 | |
| Selective | $763 | |
Key takeaways
- New Jersey home insurance rates went up around 7.5% in 2025, compared to 5.6% nationally.
- Most insurance companies in NJ have raised their rates about the same amount over the past five years. The average rate increase since 2021 is 33.1%, and only a few companies raised rates by more than 40% or less than 30%.
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NJ homeowners should make sure their homes are protected against wind damage and flooding, which were the two most common natural causes of property damage in 2025. Most home insurance policies include wind coverage, but if your home is at risk of flooding, you'll usually need to buy a separate flood insurance policy..
Best for most people in New Jersey: NJM
| Editor rating | |
| Annual cost | $1,036 |
| Monthly cost | $86 |
| Customer complaints |
Pros & cons
- Affordable prices
- Excellent customer service
- Great for bundling with auto insurance
- Unimpressive coverage options for coastal homes
Why is NJM the best?
NJM's low rates and excellent service make it the best choice for most New Jersey homeowners.
NJM gets considerably fewer complaints than an average insurance company its size, according to the National Association of Insurance Commissioners (NAIC). NJM receives about one-twentieth as many complaints as a typical insurance company.
Choosing a company that gets fewer complaints means you'll more likely avoid the headache of a slow claims process down the road.
Prices at NJM are uniformly excellent, with an average price of $1,036 for $350,000 of coverage. That's about 29% cheaper than average across NJ insurers.
The company offers lots of discounts, including bundling — one of the most profitable home insurance discounts available. NJM is also one of the cheapest car insurance companies in New Jersey, making it an even better deal.
While NJM isn't the absolute cheapest option for most New Jersey homeowners, it is the least expensive option overall for new homes. A home built in 2025 with $350,000 of coverage would cost just $559 per year to insure, or 36% cheaper than average.
Company | Annual rate | ||
|---|---|---|---|
|
| NJM | $559 | |
| Progressive | $568 | |
|
| Selective | $600 | |
|
| State Farm | $644 | |
|
| Allstate | $786 | |
Potential issues
While NJM is an excellent choice for most people, it lacks some of the special coverage options that people living on the Jersey Shore might need.
For example, it doesn't offer flood insurance or roof upgrade coverage. These can be very useful if your home is located near the water, since flooding and damage to your roof from coastal storms are a common cause of damage to waterfront homes.
NJM is also not the absolute cheapest option for home insurance. For most coverage levels, it's about $100 more per month than the cheapest option, which is usually Cumberland Mutual.
Cheapest rates in New Jersey: Cumberland Mutual
| Editor rating | |
| Annual cost | $918 |
| Monthly cost | $77 |
| Customer complaints |
Pros & cons
- Cheapest home quotes statewide
- No online quotes available
- Average customer service
- Few discounts
Why is Cumberland Mutual the best?
Cumberland Mutual consistently has the best prices for home insurance in New Jersey.
A Cumberland Mutual homeowners policy costs $918 per year for $350,000 of dwelling coverage. That's the maximum amount of money your insurance company will give you after it's damaged from a covered incident. Cumberland Mutual's rates make up an annual savings of $530 compared to the NJ state average.
How much is Cumberland Mutual insurance in New Jersey?
Dwelling coverage limit | Annual rate | % from state avg. |
|---|---|---|
| $200,000 | $598 | 41% cheaper |
| $350,000 | $918 | 37% cheaper |
| $500,000 | $1,314 | 31% cheaper |
| $1 million | $2,735 | 22% cheaper |
Cumberland's rates are a great value for lower-priced homes, but it's not the cheapest option for homeowners who need a lot of coverage. For a policy with $1 million of dwelling coverage, State Farm, NJM and Franklin Mutual all offer coverage below Cumberland's typical price.
Potential issues
Cumberland Mutual doesn't offer online quotes. Instead, you have to work with a local agent to buy a policy. This makes comparison shopping less convenient, although some customers prefer the more personalized experience offered by an agent.
Cumberland Mutual also only offers a few coverage add-ons. These include replacement cost, sump pump or sewer overflow coverage and higher limits on personal valuables, like jewelry, clothing and art.
Best insurance for coastal homes: Narragansett Bay
| Editor rating | |
| Annual cost | $1,487 |
| Monthly cost | $124 |
| Customer complaints |
Pros & cons
- Cheapest home quotes along the Jersey Shore
- Highly rated customer service
- Coast-specific coverage options
- Average rates away from the coast
Why is Narragansett Bay the best?
Narragansett Bay's prices along the coast are much cheaper than its competitors.
Cost of Narragansett Bay Insurance in coastal New Jersey
City | Narragansett Bay cost | Average cost | Savings |
|---|---|---|---|
| Asbury Park | $1,092 | $1,851 | 41% cheaper |
| Atlantic City | $1,208 | $2,456 | 51% cheaper |
| Barnegat | $576 | $1,825 | 68% cheaper |
| Brick | $821 | $1,742 | 53% cheaper |
| Cape May | $737 | $2,031 | 64% cheaper |
| Ocean City | $807 | $2,205 | 63% cheaper |
| Point Pleasant | $829 | $2,093 | 60% cheaper |
| Seaside Heights | $814 | $2,272 | 64% cheaper |
| Wildwood | $795 | $2,159 | 63% cheaper |
For major cities along the Jersey Shore, Narragansett Bay's price of home insurance is between 40% and 60% cheaper than the state average.
The company's customer service is also excellent. It receives about one-tenth as many customer complaints as a typical insurance company its size, suggesting it's good at resolving insurance claims quickly.
Strong customer service is especially important if you own a home near the coast. Insurance companies are most likely to have delays or other problems with claims when there's a widespread incident affecting dozens or hundreds of properties at once, such as a tropical storm.
Narragansett Bay also offers a few coverage options that will be particularly useful in areas at high risk of wind or storm damage, or for vacation homes:
Coverage add-ons from Narragansett Bay
- Tree removal coverage
- Food spoilage coverage
- Service line
- ^
- Flood insurance
Potential issues
Prices at Narragansett Bay are much less competitive for people who live further from the coast. For example, Narragansett Bay's average rate in Newark is $2,213 per year, or about 37% more expensive than the city average.
The best home insurance companies in New Jersey
NJM, Allstate and State Farm offer the best customer service among home insurance companies in New Jersey.
These companies get fewer complaints compared to their competitors when adjusted for size. In addition, all three score highly for customer satisfaction according to a recent J.D. Power home insurance survey.
Each company also gets high marks for affordable rates and good coverage options.
Company |
Rating
|
Complaints
|
|---|---|---|
| NJM | Low | |
| Allstate | Low | |
| Narragansett Bay | Low | |
| Selective | Average | |
| Chubb | High |
Average cost of home insurance in New Jersey
New Jersey home insurance costs $1,449 per year, making it the 11th-cheapest state in the U.S.
New Jersey home insurance costs an average of $1,449 per year for $350,000 of dwelling coverage. That's a savings of 39% over the national average of $2,395 per year.
Average cost of home insurance in NJ
Dwelling Coverage | Average Rate |
|---|---|
| $200,000 | $1,009 |
| $350,000 | $1,449 |
| $500,000 | $1,902 |
| $1,000,000 | $3,497 |
New Jersey's low homeowners' insurance rates are likely in part because of the state's relatively urban setting and relatively few natural disasters. It's not often affected by major coastal storms, tornadoes or wildfires.
New Jersey is 4% more expensive than New York but 15% cheaper than Pennsylvania.
Homes in relatively well-populated areas are less susceptible to events like fires because neighbors are more likely to notice and emergency services are closer.
NJ home insurance rates are most expensive on the Jersey Shore.
Cost of New Jersey home insurance by city
Brigantine, near Atlantic City, has the most expensive home insurance rates in New Jersey with average rates of $2,484 per year.
The most expensive cities in New Jersey for home insurance are on the Jersey Shore, including Atlantic City, Barnegat, Surf City and Avalon.
The cheapest rates can be found in Hibernia, a small inland community near Parsippany. Home insurance there costs just $1,041 per year on average. That's $1,442 less than what you'd pay in Brigantine.
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Annual home insurance rates in NJ by city
City | Average rate | Cheapest company | Cheapest rate |
|---|---|---|---|
| Absecon | $1,860 | Allstate | $1,141 |
| Adelphia | $1,573 | Cumberland Mutual | $798 |
| Allendale | $1,184 | State Farm | $683 |
| Allenhurst | $2,031 | Narragansett Bay | $904 |
| Allentown | $1,341 | State Farm | $728 |
Rates are for a policy with $350,000 of dwelling coverage.
Areas prone to storms and other natural disasters often have high home insurance costs. Factors like property crime rates and building and labor costs will also influence how much you pay for home insurance.
What natural disasters are common in New Jersey?
New Jersey residents may be at risk for floods, nor'easters and blizzards.
Coastal homeowners should make sure they're protected against nor'easters and other powerful storms. Most home insurance policies will pay for damage caused by storms and heavy winds. However, it's a good idea to check your homeowners insurance policy to make sure you're covered.
Standard home insurance policies don't protect against flood damage.
Your mortgage company will probably require that you buy flood coverage if you live in a high-risk area .
Even if you don't live in a high-risk flood zone, it's still a good idea to consider flood insurance. About a quarter of all flood insurance claims come from low- to moderate-risk areas, and flooding can be costly.
Flooding has caused more than $440 million of damage in New Jersey since 2020, according to FEMA.
Blizzards commonly occur throughout New Jersey during the winter. While you won't typically need to buy extra coverage to protect yourself from snow damage, it's a good idea to take precautionary measures like wrapping your pipes and keeping your windows closed when it's snowing.
That's because insurance companies commonly deny claims caused by damage you could have prevented.
Wind damage is among the most common sources of damage to property in New Jersey, especially near the coast. In 2025, there were more than 200+ wind-related disaster events in the state, causing hundreds of thousands of dollars of damage, according to the NOAA.
Fortunately, wind damage is typically covered by standard home insurance. But if you live in an area especially susceptible to wind, like the coast, you may be required to have a separate wind deductible as part of your policy.
Tips to save money on your New Jersey home insurance
Shop around to get the lowest rate on your New Jersey home insurance policy.
Comparing home insurance quotes can save you hundreds or even thousands of dollars a year in New Jersey. For example, switching to the cheapest home insurance company in New Jersey, Cumberland Mutual, from the most expensive, American Family, would save you $2,206 per year.
It's also a good idea to factor in home insurance discounts when comparing rates. Many companies offer multiple discounts for everything from bundling your home and auto policies to going a certain length of time without filing a claim. These discounts can save you hundreds of dollars or more each year.
You can lower your monthly rate by raising the amount of money you need to pay on qualifying repairs before your insurance starts working, called a deductible.
However, you should never raise your deductible beyond what you can easily afford to pay from your savings account. Otherwise, you might be stuck with more repairs than you can afford.
How have New Jersey home insurance rates changed over time?
Home insurance prices are up 33.1% in New Jersey over the last six years.
2024 saw the largest increase in prices in recent New Jersey history, at 10.2% for the year. There was a moderate slowdown in 2025, with prices jumping only 7.5%.
Home insurance rate hikes in New Jersey, 2021-2025
Year | Rate increase |
|---|---|
| 2021 | 3.0% |
| 2022 | 3.8% |
| 2023 | 4.3% |
| 2024 | 10.2% |
| 2025 | 7.5% |
Home insurance rate change data was compiled using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
Farmers Insurance saw the biggest increase among companies over the last five years, at 43.1%. But the range of price hikes was relatively narrow, as most companies increased prices between 30% and 40% overall. Liberty Mutual had the steadiest prices, at a total increase of 25.6% between 2021 and 2025.
Home insurance rate change data was compiled using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
Frequently asked questions
What's the best homeowners insurance company in New Jersey?
NJM offers the best combination of low rates and good customer service in New Jersey. It has home insurance rates that are 26% to 51% cheaper than average in New Jersey and well-rated customer service.
What is the average cost of homeowners insurance in NJ?
A homeowners insurance policy costs $1,449 per year on average in New Jersey. That's 40% cheaper than the national average of $2,395 per year.
Is homeowners insurance required in New Jersey?
New Jersey does not require homeowners to buy insurance. However, mortgage companies commonly require borrowers to buy home insurance. Even if you own your house free and clear, it's still a good idea to carry home insurance to protect yourself against accidents and natural disasters.
Methodology
To find the best homeowners insurance in New Jersey, ValuePenguin gathered quotes in every ZIP code in the state from the largest homeowners insurance companies. Rates are for a 1,753 square foot home built 49 years ago, based on the average home age and size in New Jersey.
ValuePenguin sourced quotes for properties at four levels of dwelling coverage to understand the cost of coverage for a variety of homes.
- Dwelling coverage: $200,000, $350,000, $500,000 or $1 million
- Personal liability: $100,000
- Medical payments: $1,000
- Deductible: $1,000
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will be different.
Each company's customer service was ranked by comparing the National Association of Insurance Commissioners (NAIC) complaint index, J.D. Power's home insurance customer satisfaction and claims satisfaction rankings and ValuePenguin editor's ratings.
Disaster data was gathered from the anchor-text-hereNational Flood Insurance Program, as well as the National Oceanic and Atmospheric Administration's disaster cost database.
About the Author
Lead Writer
Matt Timmons is a Lead Writer on the insurance team at ValuePenguin, where he writes in-depth and timely pieces helping find the right coverage for them.
He's covered insurance at ValuePenguin since 2018, specializing in auto and home insurance, as well as life insurance. He's paid special attention to the EV insurance market, where prices are much higher than for gas cars.
Before he started writing about personal finance, Matt wrote about professional skills and online tools at an e-learning company.
How insurance helped Matt
During freshman orientation in college, Matt's iPod was stolen off his table while he was eating lunch. Luckily, he'd bought a college insurance plan the day before and he had money to buy a replacement before classes started.
Expertise
- Auto insurance
- Home insurance
- Insurance rate analysis
- Life insurance
Referenced by
- CNBC
- Miami Herald
- Yahoo! Finance
Education
- BA, Wesleyan University
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
