Average Cost of Homeowners Insurance in New Jersey (2024)


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ByMark Fitzpatrick
Reviewed byMark Friedlander
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ByMark Fitzpatrick
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Reviewed byMark Friedlander
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Updated: May 22, 2024

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The average cost of homeowners insurance in New Jersey in 2024 is $1,200 per year. That's $1,223 less than the national average of $2,423.

Aside from how much coverage you get, credit rating has the biggest impact on premium costs in New Jersey, with premiums varying by as much as $1,403, depending on the rating. If your rates have recently increased, our analysis of the cheapest home insurance in New Jersey might help you find a less expensive option.

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Jun 17, 2024

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California
26-29
Excellent (750-850)
Home
$500,000
$500
$150,000
$100,000
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User Info
California
26-29
Excellent (750-850)
Home
$500,000
$500
$150,000
$100,000

To find the average cost of homeowners insurance in New Jersey, MoneyGeek pulled quotes from various providers for a profile that reflects the average homeowner.

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These rates reflect the average cost of home insurance in New Jersey as of 2024.

1.2 MQuotes Analyzed
 
8Companies Compared
 
11ZIP Codes

Average Cost of Home Insurance in New Jersey by Coverage Amount

In New Jersey, the average homeowners insurance premium is $1,200 for policies with $250K in dwelling coverage, $125K in personal property coverage and $200K liability coverage, which is less than the national average of $2,423.

Determining how much coverage you need is a key step in finding the right insurance policy. It's essential to have enough insurance to rebuild your home and cover personal property in the event of a total loss.

For example, a policy providing $100K in dwelling coverage has an annual premium of $658. On the other hand, if you have a larger home requiring $500K in dwelling coverage, the premium increases to $1,910 per year.

$100K Dwelling / $50K Personal Property / $100K LiabilityAverage Annual Premium$658
$250K Dwelling / $125K Personal Property / $200K LiabilityAverage Annual Premium$1,200
$500K Dwelling / $250K Personal Property / $300K LiabilityAverage Annual Premium$1,910
$750K Dwelling / $375K Personal Property / $500K LiabilityAverage Annual Premium$2,599
$1MM Dwelling / $500K Personal Property / $1MM LiabilityAverage Annual Premium$3,352

Average Cost of Home Insurance in New Jersey by Insurer

Homeowners in New Jersey will find that insurance premiums can vary significantly among providers for similar coverage levels. For example, a policy from New Jersey Skylands might cost less than one from The Hanover, even though both offer comparable protection for your home.

Differences in underwriting can impact an insurer's premiums, so it pays to compare when looking for the best homeowners insurance in New Jersey.

Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
New Jersey SkylandsAnnual Premium$855
ChubbAnnual Premium$872
FarmersAnnual Premium$1,098
State FarmAnnual Premium$1,124
Narragansett Bay Insurance CompanyAnnual Premium$1,183
USAAAnnual Premium$1,204
ASIAnnual Premium$1,534
The HanoverAnnual Premium$1,731

Average Cost of Home Insurance in New Jersey by Credit Score

New Jersey homeowners with poor credit ratings pay about $2,329 per year for homeowners insurance, $1,129 more than the state average. Those with excellent credit pay $926 annually. This difference underscores the impact of credit-based insurance scores on home insurance premiums.

Although you can't instantly boost your credit score, gradual improvements can lead to lower insurance rates. In the interim, comparing insurers could yield significant savings. In less than 15 minutes, you can find the most affordable New Jersey home insurers for your situation.

Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
PoorAnnual Premium$2,329
Below FairAnnual Premium$1,825
FairAnnual Premium$1,496
GoodAnnual Premium$1,200
ExcellentAnnual Premium$926

Average Cost of Home Insurance in New Jersey by Construction and Roof Type

The type of roof on your home influences insurance premiums due to material durability. New Jersey homes with tile roofs may see lower average premiums because of their resilience. Conversely, shake-treated roofs are less resistant to the elements and often incur higher insurance costs.

Construction materials also affect homeowners insurance rates. Materials with greater resistance to hazards like fire, such as those used in superior construction, can lead to more favorable premiums. Standard frame construction, more common but less resistant, typically carries higher insurance costs.

Use the drop-downs in the table below to see how premiums change based on your home's materials.

Data filtered by:Results filtered by:
Construction:
Construction:Frame
Roof Type:
Roof Type:Composition
$100K Dwelling / $50K Personal Property / $100K LiabilityAnnual Premium$658
$250K Dwelling / $125K Personal Property / $200K LiabilityAnnual Premium$1,200
$500K Dwelling / $250K Personal Property / $300K LiabilityAnnual Premium$1,910
$750K Dwelling / $375K Personal Property / $500K LiabilityAnnual Premium$2,599
$1MM Dwelling / $500K Personal Property / $1MM LiabilityAnnual Premium$3,352

Average Cost of Home Insurance in New Jersey for Newly Constructed Homes

Insuring a newly constructed home in New Jersey averages $729 annually, less than the $1,200 average for older homes. The modern materials and adherence to current building codes contribute to the lower premium costs for newer homes. The table below displays the premium differences for various coverage levels in new versus existing homes.

Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
Existing Construction (2000)Annual Premium$1,200
New Construction (2023)Annual Premium$729

Average Cost of Home Insurance in New Jersey by Claims History

Homeowners in New Jersey who have maintained a claim-free record for five years or more can expect an average annual premium of $1,200. However, a single claim within the past five years can increase that premium to $1,519, whereas two claims may push it to $1,768.

Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
Claim free for 5+ yearsAnnual Premium$1,200
1 claim in past 5 yearsAnnual Premium$1,519
2 claims in past 5 yearsAnnual Premium$1,768
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NEW JERSEY NATURAL DISASTERS AND HOME INSURANCE

In New Jersey, hurricanes, flooding and winter storms pose the biggest natural risks to homes. Most home insurance policies cover wind damage from hurricanes, but flooding is usually not covered by home insurance.

Average Cost of Home Insurance by City in New Jersey

Home insurance premiums ranged from $1,190 to $1,384 for the New Jersey cities we analyzed. Elizabeth has an annual premium of $1,190, slightly below the state average of $1,200. Jersey City's average is $1,275, while Newark tops the range at $1,384.

Locational factors like crime rates, weather risks and local construction costs can impact premiums. City-based premiums can vary significantly, but they are just one of many factors affecting insurance costs.

Data filtered by:Results filtered by:
Coverages:
Coverages:$250K Dwelling / $125K Personal Property / $200K Liability
ElizabethAnnual Premium$1,190
Jersey CityAnnual Premium$1,275
NewarkAnnual Premium$1,384
PatersonAnnual Premium$1,227

How to Shop for Home Insurance in New Jersey

Shopping for home insurance in New Jersey can be as smooth as a boardwalk ride when you understand the process. Use the following steps as a guide.

1
Understand Your Coverage Needs

Assess how much coverage you need for your home and belongings.

2
Compare Quotes

Shop around and compare home insurance quotes to find the best rates and coverage for your situation.

3
Check for Discounts

Ask providers what discounts they offer. Many will lower your premium for installing home security systems or being claims-free.

4
Consider Bundling

Look into bundling home and auto insurance for potential savings.

5
Review Company Reputation

Research insurers to ensure they have a solid track record with claims and customer service.

Bundling Home Insurance With Auto Insurance in New Jersey

In New Jersey, homeowners can unlock savings by bundling their home and auto insurance policies. On average, the combined cost of auto and home insurance can be reduced by about 12%, with savings ranging from $116 to $483 each year. It's worth looking into how to maximize these multipolicy discounts with the best New Jersey home and auto bundles.

Home Insurance Discounts in New Jersey

New Jersey homeowners could shave dollars off their insurance premiums based on the following common discount opportunities:

  • Safety Equipment: Install smoke detectors, burglar alarms or deadbolts.
  • Loyalty: Stay with the same insurance company for several years.
  • Risk Reduction: Introduce home improvements that mitigate risk, such as storm shutters.

Remember to ask the insurer how you can save with discounts when requesting a quote.

FAQ: Homeowners Insurance in New Jersey

On average, what is the cheapest insurer in New Jersey?
Is flooding in New Jersey covered by homeowners insurance?
What is the biggest factor that impacts the price of homeowners insurance in New Jersey?
How much can I save bundling my home and auto insurance in New Jersey?

Additional Resources for Homeowners Insurance in New Jersey

Explore our curated selection of resources for more insights into homeowners insurance in New Jersey.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.