Find Cheap Homeowners Insurance Quotes in Your Area
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
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
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
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
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.
|Insurer||NAIC complaint index||AM Best|
|American Family Insurance||0.66||A|
|CSAA Insurance Exchange||0.65||A|
|Cumberland Insurance Group||0.28||A-|
|Plymouth Rock of New Jersey||--||A-|
|Preferred Mutual Insurance Co.||0.37||A|
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:
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 insurance||Private flood insurance|
|Availability||Everyone||May not be available in high-risk areas|
|Dwelling coverage maximum||$250,000||No legal maximum|
|Waiting period||30 days||May 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.
|City||Average cost||% difference from average|
|Egg Harbor Township||$1,854||28.7%|
|West New York||$1,351||-6.3%|
Given the wide variation of premiums within New Jersey itself, it's clear that your costs can change even more drastically if you move to a different state altogether. Comparing the differences in average rates for homeowners insurance coverage on a statewide basis may be useful if you're trying to calculate how much your monthly budget will be affected by geographic changes in your cost of living.
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:
- American Family Insurance
- Cumberland Insurance Group
- Franklin Mutual
- Heritage Insurance
- Liberty Mutual
- National General
- NJM Insurance
- Philadelphia Contributionship
- Plymouth Rock of New Jersey
- Preferred Mutual Insurance Co.
- State Farm
- UPC Insurance
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.