Home insurance in New Jersey costs about $86 monthly or $1,033 annually on average. Residents pay $134 less per month or $1,602 less annually than the national average, making it the 12th most affordable state for home insurance.
Average Home Insurance Cost in New Jersey
Updated: May 31, 2025
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Rates updated:
Jun 06, 2025
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Key Takeaways
Depending on your financial history, home details and other personal information, home insurance costs in New Jersey can range from $1,312 to $8,829 per year.
New Jersey's home insurance premiums are the 12th most affordable in the country, at 61% below the national average.
To find the best home insurance in New Jersey, determine what coverage you need beforehand, research costs and discounts in your area, and shop around.
How Much Is Home Insurance in New Jersey?
| New Jersey Average | $86 | $1,033 | -61% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250,000 Dwelling, $125,000 Personal Property and $200,000 Liability coverage with a $1,000 deductible.
Average Home Insurance Cost by City
Depending on your city, various risk factors (including your property’s age, weather-related factors and home valuations) differ drastically, affecting home insurance costs. For example, the average monthly home insurance cost in Elizabeth is around $116; while in Newark, it’s much higher at $135.
| Elizabeth | $116 | $1,387 |
| Jersey City | $122 | $1,468 |
| Newark | $135 | $1,624 |
| Paterson | $119 | $1,425 |
*These rates represent a home built in 2000 out of frame with $250,000 Dwelling, $125,000 Personal Property and $200,000 Liability coverage with a $1,000 deductible.
Why Is Home Insurance So Expensive in New Jersey?
Home insurance is expensive in New Jersey mainly because an increasing number of claims, high risk of severe weather and natural disasters, rising material and labor costs, and state insurance laws. Below, we explain each factor in detail:
Rising Claims
As the number of insurance claims increases, insurers raise premiums to cover higher payout costs. More claims often indicate greater risk of damage, leading to more expensive home insurance.
High Weather Risks
Areas with frequent severe weather, such as hurricanes or wildfires, face higher home insurance costs due to the increased likelihood of property damage.
Rising Material and Labor Costs
When costs to repair or rebuild homes increase due to more expensive materials or labor, insurance companies raise premiums to account for these higher expenses.
State Insurance Laws
New Jersey insurance regulations can impact premiums. Laws requiring more comprehensive coverage or higher minimums can lead to more expensive home insurance policies.
What Affects New Jersey Home Insurance Costs?
Home insurance prices are influenced by several key factors:
- Location
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
Next, we'll explore how each of these factors impacts rates in New Jersey.
How Much Does Location Affect Home Insurance Costs?
Location is the biggest factor affecting home insurance rates in New Jersey, with rates varying by up to 29%. Weather risks, home value and population density in your area play major roles in determining costs.
| Lowest | New Jersey Very Small Tier Aggregate | $85 | $1,015 |
| Highest | Newark | $147 | $1,770 |
How Much Does Coverage Affect Home Insurance Costs?
Coverage choice is the second most influential factor in New Jersey home insurance rates, with rates ranging from $613 to $3,896 per year. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $51 | $613 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $325 | $3,896 |
How Much Do Home Details Affect Home Insurance Costs?
Home details like age, construction materials and roof type are the third most influential factor in New Jersey homeowners insurance rates, averaging from $61 to $115 per month. These factors affect replacement costs and the risk of damage or theft, leading to rate differences.
| Lowest | New | Superior | Composition | $61 | $734 |
| Highest | Old | Frame | Shake-Treated | $115 | $1,376 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Your choice of insurer is the fourth most influential factor in New Jersey home insurance rates, with prices ranging from 36% below to 67% above the state average.
| Lowest | New Jersey Skylands | $69 | $824 |
| Highest | The Hanover | $181 | $2,174 |
How Much Does Credit Affect Home Insurance Costs?
A higher credit score makes you appear more reliable, which can lower your home insurance costs. Premiums vary by up to 49%, with annual average rates ranging from $995 to $2,487.
| Lowest | Excellent | $83 | $995 |
| Highest | Poor | $207 | $2,487 |
How Much Does Claims History Affect Home Insurance Costs?
Filing more claims increases your perceived risk to insurers, which can increase premiums. However, in New Jersey, claims history has a smaller impact on cost than other factors. We found that depending on your claims history, rates can be affected by up to 18% or $606 annually.
| Lowest | Claim free for 5+ years | $108 | $1,298 |
| Highest | 2 claims in past 5 years | $159 | $1,904 |
Tips to Save on New Jersey Home Insurance
With rising home insurance costs in New Jersey, saving on premiums is important whether you're buying a new home or cutting current costs. Below are tips to help you secure the best and cheapest home insurance in New Jersey tailored to your needs.
- 1
Find How Much Coverage You Need Beforehand
Determining how much home insurance you need before buying allows you to frame how you search for coverage and avoid being oversold by agents. In addition to standard coverage options, consider if you need add-ons to protect any additional items you own.
- 2
Research Costs and Discounts Beforehand
To determine if you're getting a good deal, understand the average costs for you and your home. Also, ask agents about all available home insurance discounts, as some insurers apply certain reductions only when requested.
- 3
Compare Multiple Providers Through Different Avenues
Compare multiple insurers apples to apples to find the best coverage for your needs. Use various methods, including online comparison sites, brokers, provider websites, and agents, as quotes vary significantly across these channels.
- 4
Consider Bundling Policies
Bundling policies can lead to significant savings. For example, combining home and auto insurance in New Jersey can help you save annually on both policies.
- 5
Reduce Your Personal Risk Profile
To get cheaper premiums for your home, consider making improvements like adding storm shutters or home security systems. Also, improving your credit score can decrease premiums substantially. For example, moving from a fair to a good credit score can save you 28% on average.
- 6
See if You Are Eligible for State Programs
If you can't get coverage through traditional insurers, New Jersey may have state-backed programs that offer basic home insurance. You won't get the same comprehensive coverage as a standard policy, but it's enough to satisfy your mortgage lender.
New Jersey Home Insurance Calculator: Bottom Line
Home insurance costs vary, with location and coverage amount playing big roles. Find affordable rates by assessing your needs and typical costs, then use our estimate tool for the best deal.
Homeowners Calculator Insurance New Jersey: FAQ
Homeowners insurance costs in New Jersey depend on several factors. MoneyGeek answers common questions to help you estimate your home insurance expenses in New Jersey.
How much does homeowners insurance cost in New Jersey?
New Jersey's average monthly home insurance cost is $86 for dwelling coverage of $250,000. However, your rate will depend on factors like your credit score, liability and property coverage limits, and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the cost to replace their home after damage, often with help from an appraiser. While this study uses a baseline coverage of $250,000, you can use the MoneyGeek homeowners insurance calculator to determine the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your location, chosen coverage level and provider. Your credit score and home details also influence your rates.
How We Determined Our New Jersey Home Insurance Estimates
When determining the average cost of home insurance in New Jersey, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.