Average Cost of Homeowners Insurance in New Jersey (2024)

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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

• New Jersey Department of Banking and Insurance: Official state resource for insurance regulations.
• Affordable Home Insurance in New Jersey: Find cost-effective options for your home.
• New Jersey Homeowners Insurance Calculator: Estimate your potential insurance costs.
• High-Risk Home Insurance Coverage: Understand insurance for homes in high-risk areas.
• Top Home Insurance Options in New Jersey: Compare the best insurance providers.
• Personal Property Coverage Essentials: Guide to personal property insurance needs.
• Report Insurance Fraud: Online system for reporting insurance fraud.