Average homeowners insurance cost in New Jersey

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Whether you’re a new homeowner or looking to buy insurance for your current home, securing the right homeowners’ insurance is crucial. Rates may vary depending on your insurance company and the coverage limits you choose.

According to Insure.com’s data analysis, the average cost of homeowners insurance in New Jersey is $1,506 a year.

Continue reading to learn more about homeowners insurance rates in New Jersey by ZIP code and insurer.

Key Takeaways

Homeowners insurance costs an average of $1,506 a year, based on Insure.com analysis.
Of all the ZIP codes in New Jersey, 8803 has the most affordable home insurance rates at around $1,185 annually.
In New Jersey, NJM provides the most affordable home insurance at an average annual premium of $943.

Average home insurance cost in New Jersey by coverage level

In New Jersey, the annual homeowners insurance cost is $1,506, on average for the limits of $100,000 in liability, $300,000 in dwelling coverage and a $1000 deductible.

Increasing your dwelling coverage from $300,000 to $400,000 will raise your annual homeowners insurance premium to $1,873 in New Jersey, with $100,000 in liability protection and a $1,000 deductible. Below are the average costs for homeowners insurance in New Jersey based on dwelling coverage limits of $300,000, $400,000, and $500,000.

Coverage	Average annual rate	Average monthly rate
$200,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible	$1,151	$96
$200,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible	$1,171	$98
$300,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible	$1,506	$125
$300,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible	$1,526	$127
$400,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible	$1,873	$156
$400,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible	$1,894	$158
$600,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible	$2,614	$218
$600,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible	$2,634	$220
$1,000,000 with $1,000 Deductible and $100,000 Liability and 2% Deductible	$4,087	$341
$1,000,000 with $1,000 Deductible and $300,000 Liability and 2% Deductible	$4,107	$342

In New Jersey, homeowners insurance companies set rates by assessing various risk factors. Your location, claims history, credit history and coverage limit all affect your premium.

If multiple claims have been filed in your neighborhood over the past few years, you’ll likely face higher home insurance rates than areas with fewer claims. Your credit score can also play a role in determining your home insurance costs.

According to S&P Global Market Intelligence’s RateWatch application, the average homeowners insurance premium for owner-occupied homes nationwide increased by over 11% in 2023.

Best homeowners insurance companies in New Jersey

Before purchasing homeowners insurance, it’s important to compare rates and explore your options. Several factors play a role in choosing the best homeowners insurance company for your specific needs.

We evaluated insurance companies in New Jersey based on their NAIC scores and AM Best ratings to create a list of the top homeowners insurance providers in the state. Our findings show that Chubb received the lowest NAIC score and A++ rating from AM Best. A lower NAIC score indicates fewer complaints relative to the company’s size, suggesting higher customer satisfaction.

Company	Average annual premium	AM Best rating	NAIC Complaint Index	Overall score
Chubb	$1,131	A++	0.18	5
NJM	$943	A+	0.14	4.97
National General	$1,133	A+	0.92	4
State Farm	$1,187	A++	0.95	4
Franklin Mutual	$1,410	A	0.71	3.86
Farmers	$2,059	A	0.54	3.39
Plymouth Rock Assurance	$2,196	A-	1.38	2.35

Average homeowners insurance cost by company in New Jersey

NJM offers the most affordable homeowners insurance in New Jersey, at an average annual premium of $943, followed by Chubb and National General.

You can save hundreds — if not thousands — of dollars each year if you shop around for homeowners insurance.

Here are the average annual and monthly insurance rates for New Jersey homeowners for a policy with $300,000 dwelling coverage and $100,000 liability protection with a $1,000 deductible.

Company	Average annual rate	Average monthly rate
NJM	$943	$79
Chubb	$1,131	$94
National General	$1,133	$94
State Farm	$1,187	$99
Franklin Mutual	$1,410	$118
Heritage Insurance Holdings	$1,766	$147
Farmers	$2,059	$172
Plymouth Rock Assurance	$2,196	$183
USAA*	$1,270	$106

*USAA is only available to military community members and their families.

New Jersey homeowners insurance rates by ZIP code

Insurance providers in New Jersey factor in the risk of a given location when determining rates. ZIP codes with higher crime rates or frequent natural disasters are typically classified as high-risk, leading to increased premiums. Additionally, the cost of rebuilding or repairing homes in that area can affect your homeowners insurance costs.

To get the best deal on homeowners insurance rates in New Jersey, take the time to shop around and compare quotes from multiple insurers. Additionally, don’t forget to ask about potential discounts, like bundling policies or a smart home discount.

Most affordable ZIP codes for home insurance rates in New Jersey

Homeowners insurance costs in New Jersey can vary widely by location, with your ZIP code being a key factor in determining your rate. Based on our data, the the 8803 area has the most affordable insurance rates, at $1,185 annually or $99 monthly.

Below are the homeowners insurance rates for the most affordable ZIP codes in New Jersey.

ZIP code	Average annual rate	Average monthly rate
8803	$1,185	$99
8834	$1,194	$99
8504	$1,195	$100
7831	$1,209	$101
7961	$1,212	$101
7842	$1,213	$101
7870	$1,215	$101
8868	$1,216	$101
7926	$1,218	$101
7979	$1,219	$102

Most expensive ZIP codes for home insurance rates in New Jersey

Your ZIP code plays a significant role in determining the cost of your homeowners insurance. In New Jersey, some areas face higher premiums due to factors like high crime rates, greater risk of natural disasters and higher living expenses.

In New Jersey, 8203 has the highest homeowners insurance rates, at $2,434 per year.

Here, we’ve highlighted some of the most expensive ZIP codes in New Jersey for homeowners insurance:

ZIP code	Average annual rate	Average monthly rate
8203	$2,434	$203
8406	$2,411	$201
8401	$2,381	$198
8402	$2,359	$197
8006	$2,348	$196
8403	$2,309	$192
8008	$2,289	$191
8752	$2,276	$190
8735	$2,255	$188
8751	$2,253	$188

Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.

Home insurance rates in New Jersey by city

See rates in your city

Jersey City

Lakewood

Home insurance rate trend in New Jersey

We analyzed home insurance rate trends in New Jersey and found that homeowners insurance rates experienced an overall increase of 18% or $229, from 2022 to 2023.

The following data highlights the changes in homeowners insurance rates since 2019.

2019 rates	2022 rates	2023 rates
$1,429	$1,277	$1,506

Finding the right homeowners insurance requires thorough research and comparing rates from different insurers, as each has its own way of assessing risk. By gathering quotes from at least three companies, you can increase your chances of getting the most affordable coverage in New Jersey.

Resources & methodology

Source

S&P Global. “US homeowners insurance rates jump by double digits in 2023.” Accessed September 2024.

Methodology

Insure.com worked with Quadrant Information Service to get homeowners insurance data. We analyzed 20,739,560 insurance quotes from 82 national and regional insurance companies across 34,588 ZIP codes to determine the average premiums.

The insurance rates are based on a sample profile of a homeowner with good credit and the following coverage level:

$300,000 dwelling coverage
$100,000 liability protection
$1000 deductible

We have taken into account 3 important factors such as average annual cost, NAIC score and AM Best rating, to determine the list of best homeowners insurance companies. The quoted insurance rates are for comparison purposes, and your individual rates may vary.

Shivani Gite

Contributing Writer

Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.