The Best and Cheapest Home Insurers in New Jersey

Find the Cheapest Homeowners Insurance Quotes in Your Area

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After looking at 16 top homeowners insurance companies and collecting over 9,000 quotes, we recommend NJM insurance for most New Jersey homeowners. NJM's average price was 45% less than the typical price we found statewide of $1,430, and has solid coverage options and customer service to boot. Read on for more details, or use the quotebox above to compare home insurance rates in your area.

The best homeowners insurance companies in New Jersey

We conducted a detailed statewide analysis of home insurance companies in New Jersey. After considering cost, coverage options, customer service reviews and financial stability, we have a recommendation for most homeowners. In addition, we have additional recommendations for people with more specialized home insurance needs.

Best insurer for most people: NJM

NJM has great prices and well-regarded customer service, so it's our recommendation for most New Jersey residents.

The insurance company we recommend to most homeowners in New Jersey is NJM. It offers the best prices we found across the state by a substantial margin: Its average annual rate of $776 for our sample property is 45% less expensive than the typical price we found statewide and 18% cheaper than the second-cheapest option we found.

Besides great prices, NJM also has well-regarded customer service. It has an impressively low 0.03 complaint index from the National Association of Insurance Commissioners (NAIC), meaning that it received far fewer complaints from its customers than a typical company of its size.

NJM has a fairly typical range of discounts and coverages available, though it doesn't provide the biggest range we found. NJM offers online tools including quotes, bill pay and claims, features that tend to be fairly rare among regional insurance companies like NJM.

Best national insurance company: Allstate

Allstate has all the service, stability and online tools you'd expect from a major insurer, with a great price to match.

For homeowners looking for the stability and coverage options available at a large national insurance company, we recommend Allstate. It has affordable rates, widespread agent availability and excellent online tools including quotes, claims filing and bill pay. Allstate's average cost was $967 per year, or 31% cheaper than the average we found across all insurers.

Another important benefit of buying homeowners insurance from a national insurer like Allstate is that the risk is spread out geographically. It sells homeowners insurance across the U.S., so it's better able to absorb the financial losses of a major storm — especially given its "Excellent" financial strength rating from A.M. Best.

Allstate has a wide variety of less-common home coverages available, such as "green improvement reimbursement," which pays extra to replace damaged items with more eco-friendly versions, as well as homeshare coverage for people using Airbnb or Vrbo. And Allstate's insurance offerings go well beyond home: It also sells auto, motorcycle, life and umbrella insurance, among others.

Best for coastal homeowners: Narragansett Bay Insurance

Narragansett Bay has plenty of expertise helping coastal homeowners protect their properties.

People who live near the Jersey Shore and want expertise in coastal home insurance should take a look at Narragansett Bay Insurance. The company only sells insurance along the East Coast and has specialized coverage options that may appeal to coastal homeowners.

Narragansett Bay's "Mariner Plus" endorsement offers several benefits that may help protect your home during a hurricane or nor'easter: For example, it increases your household content limits and tree-removal coverage, among other things.

Beyond its coast-specific coverages, Narragansett Bay also has very affordable insurance quotes: $946 on average, making it among the most affordable companies we found.

The biggest drawback to buying Narragansett Bay insurance is that it's only available through an agent: You can't get quotes online. However, you are able to make bill payments and report claims on its website.

Best for high-value homeowners: Chubb

Chubb's specialized coverage options and high policy limits make it very appealing to owners of high-end homes.

Owners of high-value homes should consider Chubb insurance, which specializes in coverage for expensive properties. Chubb offers higher limits than may be available at other insurers, as well as coverages that particularly appeal to wealthy people. For example, Chubb offers a cash out option if your home is totally destroyed: Instead of requiring you to use the money to rebuild your home, you can simply keep the money.

In addition to high-end coverage, Chubb is also known for its top-tier customer service and no-hassle claims process. As a result, it has a very strong 0.17 NAIC complaint index, meaning that it receives less than one-fifth the expected number of complaints from a typical home insurer.

Unfortunately, Chubb's policies are not the most affordable options available. Its price for our sample property was exactly the same as the statewide average: $1,410 per year. Plus, Chubb has minimum coverage limits. You must buy coverage above a certain dollar amount in order to qualify for a Chubb policy; so if you're looking for a policy with a relatively small coverage limit, Chubb may not be for you.

The best-reviewed homeowners insurance companies in New Jersey

When deciding on an insurance company, it's essential that you find a company that matches an affordable price with great customer service. When we review insurance companies, two key components we consider are a company's complaint index from the National Association of Insurance Commissioners (NAIC), and its financial stability as determined by A.M. Best.

InsurerNAIC complaint indexAM Best
AIG0.10A
Allstate0.30A+
American Family Insurance0.66A
Andover Companies0.12A+
Chubb0.17A++
CSAA Insurance Exchange0.65A
Cumberland Insurance Group0.28A-
Farmers Insurance0.17A
Franklin Mutual0.00A+
Heritage Insurance0.20--
Liberty Mutual0.00A
MetLife0.22A
National General0.30A-
NJM Insurance0.03A+
Philadelphia Contributionship0.47A
Plymouth Rock of New Jersey--A-
Preferred Mutual Insurance Co.0.37A
Selective--A
State Farm0.20A++
Travelers0.23A++
UPC Insurance7.02--
USAA0.15A++

The NAIC complaint index compares a company's size with how many complaints it has received. A lower complaint index suggests that customers tend to be happier with the service they receive from their insurance company: 1.0 is the national average score.

The A.M. Best financial strength rating (FSR) is a holistic analysis of an insurer's financial strength and ability to pay out claims regardless of economic climate or widespread disaster (such as a hurricane). The highest grade is an A++, and the lowest is a D.

The cheapest options for homeowners insurance in New Jersey

One of the most important considerations to make when choosing a home insurance company is how much it costs. With that in mind, we determined which insurance companies offer the cheapest rates statewide. Here are the top 10 cheapest insurance companies in New Jersey:

Bar chart comparing the rates of the 10 most affordable home insurers in New Jersey, along with the statewide average cost.

The most common homeowners insurance perils in New Jersey

Due to its location on the Atlantic coast, New Jersey is subject to many seasonal storms that begin in the Atlantic Ocean, such as hurricanes and nor'easters. These large storms can have a range of consequences for New Jersey homes, including wind, rain, snow and flooding. Some of these are covered by insurance — and some aren't.

Is wind damage covered by home insurance?

Damage to your home from wind is almost always covered by home insurance. Wind is one of the basic perils included in nearly every home insurance policy. This is true whether wind rips shingles off the roof of your house, flings a rock into a window or knocks a tree onto your garage.

Ways to reduce your risk of wind damage:

  • Cover windows and doors during storms
  • Secure lawn furniture and other potential projectiles
  • Trim trees and brush near your home
  • Reinforce your garage door

Is damage from rain and flooding covered by insurance?

Unfortunately, damage to homes from rain and flooding usually isn't covered by standard homeowners insurance policies. Instead, homeowners whose properties are at risk of flooding will need to buy a separate flood insurance policy, which covers damage to your property from hurricane-related flooding as well as river overflow.

There are two main kinds of flood insurance available to homeowners: policies backed by the federal government (often called NFIP flood insurance) but sold through private insurers, and those that are completely private. The main differences between the two are:

NFIP flood insurancePrivate flood insurance
AvailabilityEveryoneMay not be available in high-risk areas
Dwelling coverage maximum$250,000No legal maximum
Waiting period30 daysMay have a shorter waiting period

Is damage from snow covered by homeowners insurance?

The weight of snow after a heavy or particularly wet snowstorm can weigh down and damage your roof or other property; sometimes even causing a collapse. Fortunately, damage due to the weight of snow is covered by homeowners insurance, so long as you didn't cause the damage due to negligence.

However, if you're concerned about snow or ice damaging your roof, it's best to make sure to clear the snow off your roof regularly, and make sure your gutters are clear to prevent blockages.

New Jersey insurance rates: City-by-city breakdown

In addition to a comprehensive statewide rate comparison, we also looked at the cost of home insurance on a citywide basis. Below, see the cost of homeowners insurance for 52 of the largest cities and towns in New Jersey, along with how they compare to the average price statewide.

CityAverage cost% difference from average
Bayonne$1,399-2.9%
Bloomfield$1,325-8.1%
Brick$1,83827.6%
Bridgewater$1,102-23.5%
Camden$1,77323.0%
Cherry Hill$1,5316.3%
Clifton$1,293-10.2%
East Brunswick$1,230-14.6%
East Orange$1,72719.8%
Edison$1,209-16.1%
Egg Harbor Township$1,85428.7%
Elizabeth$1,390-3.5%
Franklin$1,117-22.5%
Gloucester City$1,5769.4%
Hackensack$1,229-14.7%
Hillsborough$1,125-21.9%
Hoboken$1,371-4.9%
Howell$1,4782.6%
Irvington$1,59210.5%
Jackson$1,414-1.8%
Jersey City$1,59510.7%
Kearny$1,347-6.5%
Lakewood$1,5064.5%
Linden$1,281-11.1%
Manchester Township$1,375-4.6%
Marlboro$1,379-4.3%
Middletown$1,5668.7%
Monroe Township$1,215-15.7%
Mount Laurel$1,4571.1%
New Brunswick$1,232-14.5%
Newark$1,69417.6%
North Bergen$1,386-3.8%
North Brunswick$1,190-17.4%
Old Bridge$1,303-9.6%
Parsippany$1,092-24.2%
Passaic$1,5225.6%
Paterson$1,64314.0%
Perth Amboy$1,359-5.7%
Piscataway$1,186-17.7%
Plainfield$1,293-10.3%
Sayreville$1,352-6.2%
Teaneck$1,212-15.9%
Toms River$1,75021.4%
Trenton$1,4782.6%
Union$1,298-9.9%
Union City$1,4571.2%
Vineland$1,61011.7%
Washington$1,107-23.2%
Wayne$1,231-14.6%
West New York$1,351-6.3%
West Orange$1,326-8.0%
Woodbridge$1,348-6.4%

Methodology

For our statewide home insurance comparison, we collected thousands of quotes from 17 of the most popular home insurance companies in New Jersey for every ZIP code in the state. Our sample home was built in 1969 and has a dwelling coverage limit of $334,900.

The home insurance companies we surveyed are:

  • Allstate
  • American Family Insurance
  • Chubb
  • Cumberland Insurance Group
  • Franklin Mutual
  • Heritage Insurance
  • Liberty Mutual
  • National General
  • NJM Insurance
  • Philadelphia Contributionship
  • Plymouth Rock of New Jersey
  • Preferred Mutual Insurance Co.
  • Selective
  • State Farm
  • Travelers
  • UPC Insurance
  • USAA

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 may be different.

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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.