The Best Homeowners Insurance in New Jersey of 2023

The best homeowners insurance in New Jersey comes from insurance companies that not only offer the coverage customers need but also make it easy to buy and manage their policies.

By Karon Warren and Jeff Keleher | Updated Jan 20, 2023 5:58 PM

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The Best Homeowners Insurance in New Jersey Options

Photo: istockphoto.com

Homeowners insurance protects a customer’s biggest investment: their home and personal belongings. However, finding out what is the best homeowners insurance in New Jersey takes time and research. The best homeowners insurance companies in New Jersey offer coverage that is affordable and can be customized to protect every asset. However, these companies also make it easy for customers to purchase and manage their policy, as well as to file a claim. It’s also important for customers to find reputable companies that are well known for paying claims in a timely manner. Looking for insurance companies that check all these boxes is critical to finding the best homeowners insurance in New Jersey.

  1. BEST OVERALL: State Farm
  2. RUNNER-UP: NJM
  3. BEST DISCOUNTS: Amica
  4. BEST FOR SERVICE MEMBERS: USAA
  5. ALSO CONSIDER: Lemonade
The Best Homeowners Insurance in New Jersey Options

Photo: istockphoto.com

What to Consider When Choosing One of the Best Homeowners Insurance Companies in New Jersey

There are a lot of considerations when shopping for homeowners insurance that go beyond price. While getting the cheapest homeowners insurance in New Jersey is great for a customer’s budget, there’s more than just cost that makes a good insurance company. These criteria include companies that offer coverage amounts to sufficiently protect every asset, an easy-to-use quote process, and additional policies so consumers can manage all of their insurance coverage with one company.

Coverage Amount

When filing a homeowners insurance claim, homeowners don’t want to find out their coverage is not enough to repair or rebuild/replace their home and personal belongings. That’s why it’s critical for customers to find an insurance company that offers the appropriate amount of homeowners insurance coverage that equals or exceeds the value of the home and personal belongings. Every company has different coverage limits, so finding out what those maximum coverage amounts are is the first step in finding the best homeowners insurance. If those standard coverage amounts are not enough to cover their home and belongings, homeowners will want to ask about increasing coverage limits or move on to the next insurance company.

Policy Options

While homeowners insurance is meant to cover the repair or replacement of the dwelling and its contents in the event of a covered loss, there are some policy options that could affect how that coverage is paid. Most policies have the option for either replacement cost coverage or actual cash value coverage. With actual cash value coverage, the insurance adjuster will evaluate the value of the home and/or belongings by looking at those items’ original cost less depreciation for age and normal wear and tear. With replacement cost coverage, the policy will pay what it will cost the homeowner to actually replace those items, less the deductible.

Replacement cost coverage usually costs more than actual cash value coverage, but it could be worth it in the long run. In some instances, replacement cost coverage may be included in a company’s standard homeowners policy.

Insurance Premiums

How much is homeowners insurance in New Jersey? There are several factors that can affect insurance premiums, including the age of the home, where it’s located, and the type of construction (brick, wood, stucco, etc.). The type and amount of coverage also affects the amount of the insurance premiums. The more coverage purchased, the higher the premiums. Additionally, policies that include replacement cost coverage typically cost more than those that pay out based on actual cash value.

Deductibles also help determine how much premiums are. Generally speaking, the higher the deductible, the lower the premiums and vice versa.

Quote Process

When shopping for homeowners insurance, customers are advised to get quotes from a minimum of three companies to find the best rates. Insurance companies that have a streamlined quote process can save homeowners time and make it easy for them to get the quotes they need for comparison. Online quote portals that allow homeowners to input some basic information in order to receive a rate quote in just a few minutes make obtaining quotes a smoother process.

However, it’s important to know that online quotes are just estimates and could change once the insurance company has more specific information on the home and the desired policy. Speaking with an agent could result in a more accurate rate quote because they can use specific details to provide a quote for the exact coverage requested.

Claims Process

No one likes filing an insurance claim, and that’s no different with homeowners. That’s why finding an insurance company with a smooth and fast claims process is essential. When narrowing down the list of possible insurance companies, homeowners may want to ask family and friends for referrals on insurance companies they’ve had good experiences with when filing a claim. Also, it’s advisable for homeowners to check customer reviews on such sites as the Better Business Bureau to see how the insurance company has handled claims in the past. Finding out this information up front could save homeowners a big headache in the future should they have to file a claim.

Deductibles

When filing a homeowners insurance claim, homeowners will first pay a deductible, which is the amount paid out of pocket toward repairs or replacement. The amount of the deductible depends on how much coverage is purchased, the type of coverage, and how much the insurance premiums are. Typically, the higher the insurance premiums are, the lower the deductible is. When deciding on a higher or lower deductible, homeowners will want to consider whether they want to pay more over the term of the homeowners insurance policy, or if they will have the necessary cash to pay a higher deductible out of pocket if they file a claim. In some areas of the country, there are separate deductibles for certain types of coverage, such as for wind damage in areas prone to hurricanes, so a homeowner will want to find out this information in advance of signing up for a policy.

Additional Policies

Many insurance companies that sell homeowners insurance policies also sell other types of insurance, such as car insurance, life insurance, and umbrella insurance. Finding an insurance company that offers the different types of insurance a homeowner needs could be very beneficial for several reasons. First, it could result in discounts on those insurance policies. Second, it can make it easy for the homeowner to manage all their insurance policies in one place. Third, it’s possible the homeowner may be able to work with the same agent for all insurance needs, so they only need one point of contact regardless of the insurance policy in question.

Homeowners in New Jersey may want to look into how to get hurricane insurance coverage. Insurers typically cover damage from windstorms, although there may be a separate deductible for hurricane or wind damage. Additionally, New Jersey residents may need to consider researching the best flood insurance companies to help protect their home should a hurricane or heavy rain cause flood damage, as this type of damage is usually not covered by a homeowners insurance policy.

Discounts

When figuring out New Jersey homeowners insurance rates, homeowners often look for the policy that costs the least but won’t sacrifice the coverage they need. That’s why it’s important for homeowners to ask the insurance company about the discounts it offers to customers. Many offer discounts for bundling policies together, such as home and auto, but they also offer discounts for the way homeowners manage their policies. Examples of these discounts include paperless billing, automatic payments, and automatic renewals. Other ways to save money could include discounts for having home security systems, loyalty discounts if the homeowner’s parents also have insurance with the company, and discounts for energy-efficient home materials.

AM Best Rating

Knowing the insurance company is financially secure and will be around for the long term in the event a homeowner files a claim is crucial to choosing the best homeowners insurance company in New Jersey. AM Best is a credit rating agency that examines an insurance company’s financial strength and creditworthiness to determine if the company is well positioned to pay its claims as agreed. It maintains a rating system from A++ (“Superior”) to D (“Poor”).

When conducting research, homeowners will want to look for companies with ratings of A (“Excellent”) to A++ (“Superior”), as these companies are determined to have the ability to meet their ongoing insurance responsibilities. Companies with a “Good” rating (B+ to B++) also might warrant a look, but the higher the AM Best rating, the better.

Our Top Picks

When researching the best homeowners insurance in New Jersey, we looked for companies that had affordable rates, great coverage options, and excellent AM Best ratings.

Best Overall

Photo: statefarm.com

Why It Made the Cut: State Farm offers comparatively low insurance rates for New Jersey properties, a fortified roof endorsement option, several discount opportunities, and a stellar AM Best rating.

While exact rates will depend on the coverage options that a policyholder selects, State Farm offers fairly low rates on homeowners insurance in New Jersey. Policyholders also can purchase an endorsement that will allow them to replace a roof damaged by a covered event with one using fortified materials and construction methods. This policy add-on could be appealing to New Jersey homeowners who are worried about the threat of hurricanes and would like the option to replace a damaged roof with one that could better withstand high winds and tropical storms.

However, it’s important to note that State Farm assigns separate deductibles for hurricane damage, which can go as high as 10 percent of the dwelling coverage limit. For homeowners who have taken steps to protect their homes from hurricanes, State Farm offers those policyholders a wind mitigation discount. Other discounts include a home and auto bundle discount of up to 35 percent, which is a relatively high discount. Finally, State Farm’s A++ AM Best rating makes it stand out as a financially secure company that customers can feel confident about.

Specs

  • Quote process: Online, phone, agent
  • Claims process: App, online, phone, agent
  • Deductibles: 0.5 percent to 5 percent, $1,000 to $10,000; 1 percent to 10 percent for hurricane coverage
  • Additional policies: Auto, motorcycle, watercraft, ATV, farm and ranch, umbrella, life
  • Discounts: Multi-policy, protective device, wind mitigation
  • AM Best rating: A++

Pros

  • Relatively low insurance premiums
  • Fortified roof upgrade endorsement available
  • Generous discount of up to 35 percent on home and auto bundles
  • Wind mitigation discount
  • A++ AM Best Rating

Cons

  • Separate hurricane deductible as high as 10 percent

Runner-Up

The Best Homeowners Insurance in New Jersey Option NJM
Photo: njm.com

Why It Made the Cut: NJM offers replacement cost coverage as a standard inclusion with every insurance policy, a variety of discounts, and an option to choose a low deductible for homeowners insurance.

NJM policyholders can enjoy added peace of mind knowing that their homeowners insurance includes replacement cost coverage as part of a standard policy. While the more common type of homeowners insurance coverage, actual cash value, accounts for depreciation when determining the value of covered possessions, replacement cost coverage does not. This means that homeowners with an NJM insurance policy could stand to receive a larger payout when filing a claim on damaged or lost items.

NJM also provides numerous opportunities for homeowners to save money on their homeowners insurance, including discounts for policyholders 65 and older or those who are nonsmokers. There are also discounts for additional protections against hurricane and wind damage, which could help offset the policy’s separate hurricane deductible.

In addition, NJM offers a wide range of deductibles on dwelling and personal property coverage, including a deductible option as low as $500.

Specs

  • Quote process: Online, phone
  • Claims process: Online, phone
  • Deductibles: $500 to $10,000
  • Additional policies: Auto, motorcycle, watercraft, ATV, classic car, umbrella, flood
  • Discounts: Multi-policy, protective device, age 65 and over, backup or portable generator, nonsmoker, storm shutters and hurricane glass, paid-in-full, electronic payment
  • AM Best rating: A+

Pros

  • Standard replacement cost coverage
  • Wide selection of discounts
  • Low $500 deductible option

Cons

  • Unclear hurricane deductible amount

Best Discounts

The Best Homeowners Insurance in New Jersey Option Amica
Photo: amica.com

Why It Made the Cut: Amica boasts a wide variety of available discounts, built-in hurricane coverage without a separate deductible, and the option to purchase water backup coverage.

Amica includes hurricane coverage as part of a standard homeowners insurance policy in New Jersey that does not include a separate hurricane deductible. Also, policyholders have the option to purchase up to $50,000 of water backup coverage as an extra endorsement, which could help them pay for expensive repairs if they experience water damage from backed-up drains and sewers.

Although Amica has relatively high rates, those rates depend on the property, policyholder, and coverage terms, so customers may not find the rates high. Amica also has relatively limited deductible options, but it’s possible that speaking to an agent to get a quote could lead to additional deductible options. And, unlike some competitors that may only require a single month’s payment up front—if any initial payment is due at all—Amica requires customers to pay for 2 months of coverage when they take out a homeowners insurance policy.

Amica policyholders can take advantage of numerous discounts to help lower the cost of their coverage, including customer loyalty discounts, no-claims discounts, automatic detection device discounts (for devices that detect leaks, fire, smoke, or intruders), and newly built or remodeled home discounts.

Specs

  • Quote process: Online, phone
  • Claims process: Online, phone
  • Deductibles: $1,000
  • Additional policies: Auto, motorcycle, RV, umbrella, life, boat, flood, pet
  • Discounts: Multi-policy, loyalty, claims-free, automatic payments, paperless billing, protective device, automatic detection device, new or remodeled home
  • AM Best rating: A+

Pros

  • Hurricane coverage included without separate deductible
  • Up to $50,000 of water backup coverage available
  • Wide selection of discounts

Cons

  • Relatively high insurance premiums
  • Limited deductible options
  • 2 months’ worth of payment due up front

Best for Service Members

The Best Homeowners Insurance in New Jersey Option USAA
Photo: usaa.com

Why It Made the Cut: USAA offers policies with replacement cost coverage as a standard inclusion, boasts a superior AM Best rating, and provides a wide range of other policies to purchase.

Limited to active and former military members and their families, USAA offers homeowners insurance that includes replacement cost coverage at no additional cost. Because USAA doesn’t take depreciation into account, USAA members might receive larger payouts on their homeowners insurance claims. While USAA doesn’t advertise its available deductibles, with the company’s A++ AM Best rating, policyholders can feel confident their claims will be paid as agreed.

USAA offers a number of insurance policies in addition to homeowners insurance, including flood insurance and coverage for watercraft. By working with one company for all of their insurance needs, homeowners can simplify the day-to-day management of their different policies.

Specs

  • Quote process: Online (for USAA members), phone
  • Claims process: App, online, phone
  • Deductibles: Unknown
  • Additional policies: Auto, motorcycle, watercraft, ATV, RV, classic car, landlord, flood, farm and ranch, umbrella, life, aviation, pet
  • Discounts: Multi-policy, protective device, connected home, loyalty, claims-free
  • AM Best rating: A++

Pros

  • Standard replacement cost coverage
  • Wide selection of additional policies available
  • A++ AM Best Rating

Cons

  • USAA membership limited to service members and their families
  • Unknown deductible options

Also Consider

The Best Homeowners Insurance in New Jersey Option Lemonade
Photo: lemonade.com

Why It Made the Cut: Lemonade has low insurance deductible options, the potential to receive instant approval on insurance claims, and the ability to donate unclaimed premiums to a charity of the customer’s choice.

Although Lemonade’s additional policy offerings are limited to auto, life, and pet insurance, the company’s $500 minimum deductible can help New Jersey homeowners get a larger payout when making a claim.

Getting a quote on a policy could take some time, though, because Lemonade’s online quote process requires a lot of information about the property and policyholder before the customer receives a quote. That being said, gathering so much information may be necessary because Lemonade policies can only be purchased directly through the site, so customers need to provide detailed information to ensure they are getting the coverage they need.

While the company doesn’t have an AM Best rating yet, it does have a good reputation for paying claims. Lemonade uses AI technology to screen claims and determine which ones require a closer review from an actual agent, and in some cases, claims can be approved and paid out instantly. Plus, Lemonade donates up to 40 percent of unclaimed premiums each year to charities of policyholders’ choice.

Specs

  • Quote process: Online
  • Claims process: Online
  • Deductibles: $500 to $10,000
  • Additional policies: Auto, life, pet
  • Discounts: Multi-policy, protective device
  • AM Best rating: Not rated

Pros

  • Instant claim approval possible
  • Low $500 deductible option
  • Up to 40 percent of unclaimed premiums donated to charity

Cons

  • No current AM Best rating
  • Lengthy online quote process
  • Limited additional policy options

Our Verdict

We chose State Farm as Best Overall because it offers some of the lowest rates and comes with a Superior AM Best rating. NJM is our Runner-Up because policyholders receive replacement cost coverage with every policy plus they can take advantage of a lot of discounts.

How We Chose the Best Homeowners Insurance Companies in New Jersey

When determining the best homeowners insurance options for New Jersey homeowners, we weighed various factors. For instance, we reviewed the different coverage options available from each company and tried to get an idea of what insurance premiums might look like for customers. We also looked at the potential discounts and deductible options to see how each company could help policyholders save money on their homeowners insurance. Other considerations included a review of the company’s financial strength and creditworthiness, quote processes, and claims processes.

Before You Choose One of the Best Homeowners Insurance Companies in New Jersey

The information provided here is a glimpse of the services provided by five insurance companies that sell homeowners insurance to customers in New Jersey. That does not mean these companies are the best option for every homeowner in the state. Instead, it’s important for homeowners to conduct their own research with these and other companies to find the one that offers the best coverage at the best rates to fit their needs. It’s possible a homeowner could find a better option with a company not listed here, such as a local insurance company.

Cost of Opting for One of the Best Homeowners Insurance Companies in New Jersey

When trying to determine the average cost of homeowners insurance in New Jersey, homeowners will need to know that insurance companies look at many factors to establish rates. These include the age of the home, its location, and the home construction (brick, wood, etc.). Costs also are affected by the amount and type of coverage purchased; the more coverage purchased, the higher the cost will be. Insurance companies also will take into consideration the homeowners’ previous claim history.

To get the best rates, it’s important for homeowners to get rate quotes from a minimum of three insurance companies. Customers will want to make sure they share the same information with each company and ask for the same type and amount of coverage to be able to make a fair rate comparison.

The Advantages of Opting for One of the Best Homeowners Insurance Companies in New Jersey

When looking for the best homeowners insurance companies in New Jersey, customers may wonder whether choosing a one of these companies is the best option. Because each homeowner has different coverage needs, they may find that other companies are a better match, but in general choosing the best homeowners insurance companies has several advantages for New Jersey homeowners, including excellent AM Best ratings, discounts to help customers save on insurance premiums, and easy quote and claims processes. The best homeowners insurance companies in New Jersey can provide several additional benefits that may appeal to residents of this state, including:

  • Generous discounts, including home and auto bundles and wind mitigation discounts, that may help homeowners save money on their insurance.
  • Standard replacement cost coverage that does not account for depreciation when determining the size of claim payouts.
  • Numerous optional endorsements to add extra coverage, including fortified roof upgrades and expanded water backup coverage.

FAQs

Shopping for the best homeowners insurance in New Jersey can be confusing and time-consuming, but it’s necessary to research insurance companies to find the best coverage available. The following are a few of the most commonly asked questions regarding homeowners insurance.

Q. What is the cheapest homeowners insurance in New Jersey?

Several sites list NJM as the company with the cheapest rates, but rates are dependent on different criteria that may vary across policyholders, such as coverage terms, the condition of the property, and other factors.

Q. Is home insurance in New Jersey expensive?

Again, home insurance rates vary based on coverage terms, the home’s condition and age, and other factors.

Q. What does homeowners insurance cover?

The best homeowners insurance covers the dwelling structure and personal contents. The exact terms of coverage will depend on the types of homeowners insurance that a company offers.

Q. What is the average homeowners insurance cost in New Jersey?

The average cost of homeowners insurance in New Jersey for $250,000 in dwelling coverage is $775 per year. Homeowners who purchase $300,000 in coverage will pay an average of $926, while those who buy $500,000 in dwelling coverage will pay an average of $1,426.

Q. What type of insurance must you have in New Jersey?

There are no New Jersey homeowners insurance laws, but mortgage lenders will likely require borrowers to purchase homeowners insurance to qualify for a home loan.

Q. Does Geico have homeowners insurance in New Jersey?

Yes, Geico sells homeowners insurance in New Jersey.

Sources: Bankrate, Policygenius