New Jersey had a homeownership rate of 64.2% in 2022, which is just below the national average of 65.7%. 1 2 Homeowners in New Jersey face unique risks, as the state’s location on the country’s eastern coast makes it prone to hurricanes and intense storms called nor’easters. Homeowners insurance is key to protecting your home against these disasters.

The average annual cost of homeowners insurance in New Jersey is $1,184 for $300,000 in dwelling coverage with a $1,000 deductible, according to Insurify data. But it’s possible to get a policy at a lower cost.

Here’s what you should know about comparing home insurance rates in New Jersey to help you find the right coverage at the right price.

Best home insurance companies in New Jersey

Many trusted home insurance companies provide coverage to New Jersey residents. The companies highlighted below provide affordable dwelling and personal property coverage, as well as solid customer service, for a fair price.

Best insurer for cheapest rates: Selective Insurance

Selective Insurance offers many policy options, including homeowners insurance, flood insurance, auto insurance, and business insurance. Owners of the 953,000 small businesses in New Jersey3 might consider this company to get their homeowners insurance policy and professional coverage from the same insurer to qualify for additional discounts.

Best insurer for new builds: Cumberland Insurance Group

Cumberland Insurance Group offers a special coverage discount for new construction homes. With 2,507 permits for the construction of new private housing units authorized in December 2023, thousands of Jersey residents can take advantage of this opportunity to save extra on insuring their new space.4

Best insurer for coastal homes: US Coastal

US Coastal offers insurance in New Jersey and New York. Cabrillo Coastal General Insurance Agency administers policies, and the company is dedicated to helping people in hurricane-prone areas find coverage. New Jersey’s 7.1 million coastal residents might want to consider this company for its sophisticated pricing techniques and innovative claims-handling process that help protect them against storms at an affordable rate.

Best insurer for specialty coverages: Chubb

Based in New Jersey, Chubb is the largest publicly traded property and casualty insurance company in the world, with an A++ rating from AM Best for financial stability. Chubb provides a number of insurance products, including home, renters, condo, co-op, auto, travel, boat, and natural disaster coverage. The insurer also offers bespoke coverage options for home offices, farms, and ranches. Chubb offers premium homeowners coverage through Chubb Masterpiece. The insurer has a low 0.12 rating on the National Association of Insurance Commissioners Consumer Complaint Index, compared to the 1.00 average.

Cheapest home insurance in New Jersey

The cheapest home insurer in New Jersey is Selective Insurance, which offers average monthly premiums that are less than half of the state’s overall average.

But several other companies also offer affordable coverage in the Garden State, as you can see in the table below.

Cost of homeowners insurance in New Jersey

The average monthly premium for New Jersey homeowners is $1,241 for a policy with a $500 deductible that offers $300,000 in dwelling coverage, Insurify data shows.

But costs vary based on your coverage needs. Average premiums for homeowners who need only $100,000 in dwelling coverage are just $565, while homeowners who need $500,000 in coverage pay an average of $1,742 per year.

Cost of homeowners insurance by dwelling coverage amount

When you buy homeowners insurance, you must buy a certain amount of dwelling coverage. The insurer pays up to that amount to repair or replace your home after a covered loss. The more dwelling coverage you need, the larger a potential payout would be — and the higher the premiums you’ll pay because of the added risk to the insurer of a large claim.

The table below shows how much you can expect to pay for a policy in New Jersey with a $1,000 deductible, based on your dwelling coverage amount.

Cost of homeowners insurance by deductible

You’ll have to pay a deductible when you make a covered homeowners insurance claim. If you have a $500 deductible and your house suffers $1,500 in damage, you’d pay the first $500 in repairs and your insurer would cover the rest.

The higher your deductible, the lower your premiums will be because insurers won’t pay as much for a covered claim. On the other hand, a lower deductible results in higher premiums. But if a disaster happens, you won’t be out as much money.

The table below shows average yearly home insurance costs based on deductible amount with $300,000 in dwelling coverage.

How to get cheap homeowners insurance in New Jersey

You can take steps to save on homeowner’s insurance premiums in New Jersey. Here are some tips to help you get cheap home insurance coverage in the Garden State:5

• Bundle multiple insurance policies. If you buy several insurance products from the same company — such as homeowners insurance, condo insurance, or auto insurance — you’ll typically get discounts on both policies. Generally, the more policies you can bundle, the greater the savings.

• Shop for coverage. Getting quotes from several home insurance companies allows you to find the one offering the lowest price for your situation. You can shop for quotes online. Just be sure you’re choosing the same types of homeowners insurance coverage with each insurer to compare similar policies.

• Install safety or security devices. Having safety and security devices in your home, like smoke detectors and alarm systems, makes the chances of a large claim less likely, so they result in reduced premiums. Installing them can be one of the best ways to reduce costs since they also make your house safer.

• Keep your home systems upgraded. New roofs, new windows, and new HVAC systems can all result in lower premiums because they reduce the chances of a large claim. Keeping your home updated is a good choice, as it helps you get affordable insurance and protects your property’s value.

• Increase your deductible. While you’d have to pay more if a covered event happens, you can reduce your monthly premiums by choosing a policy with a higher deductible. Think carefully about how much you can afford to pay out of pocket if you have to make a claim, and choose a policy with the highest deductible you’re comfortable with.

How much homeowners insurance do you need in New Jersey?

If you have a mortgage, your lender will require you to buy homeowners insurance. Your lender can help you determine how much dwelling coverage you need.6 This protects against covered damages to your home’s structure.

A standard home insurance policy will also cover your personal property, so you’ll want to make sure you have enough coverage to protect against losses or damage to items such as your furniture or electronics. Creating an inventory of your personal items can give you a good estimate of how much coverage to get.

Your insurance agent can also help you figure out how much liability coverage to include in your policy so that your assets are safe if someone is hurt at your home and makes a claim against you. You’ll also want to make sure you have additional living expenses coverage, which can help pay for expenses like hotel stays if you can’t live in your home while it’s being repaired.

What are some of the biggest risks when owning a home in New Jersey?

These are some of the biggest potential dangers that New Jersey homeowners face: