To make shopping for renters insurance easier, MoneyGeek ranked the best and most affordable New Jersey insurers. Our unique scoring system rated the top renters insurance carriers in New Jersey based on affordability, financial stability and customer service.
The Best and Cheapest Renters Insurance in New Jersey for 2021: Rankings, Reviews and Rates
Cheap Renters Insurance Companies in New Jersey
Most renters in New Jersey consider cost as an important factor in picking an insurance policy. Lemonade is the cheapest provider in the state, with an average rate of $69 a year. USAA follows it in second place, but this company only serves veterans, current military members and their families. In third place is MetLife, with average costs of $110 per year.
The average premiums for each renters insurance provider are based on rates across a diverse collection of ZIP codes in New Jersey for a plan with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
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Best Renters Insurance Companies in New Jersey
Financial stability is an important factor, and you should ideally buy a policy from an established provider. The carrier should be able to support you with effective and timely service at an affordable price.
MoneyGeek found the best renters insurance companies in New Jersey by scoring carriers on three key factors: unique pricing data, customer support scores from J.D. Power and financial strength ratings from AM Best. The data reveals that USAA is the best renters insurance firm in New Jersey with a score of 92.4 out of 100. For non-military members, Lemonade is the best option, with a score of 88.0.
USAA's renters insurance includes personal property protection, replacement cost coverage and liability coverage. A notable feature is how USAA's standard policies include earthquake coverage and flood protection. This provider also offers discounts for bundling policies and home security devices.
Lemonade's standard policy includes personal property coverage, personal liability, loss-of-use coverage, medical payments to others and off-premises coverage. The Lemonade Giveback program donates to charity up to 40% of funds that aren’t spent on claims.
Allstate presents well-rounded renters insurance coverage, including sewer and water damage. You can also get good protection for your expensive items, like jewelry. A notable feature is the absence of overall limits on compensation amounts. Allstate offers claim-free, 55 and retired, safe home, easy-plan and multi-policy discounts.
MetLife provides bonus coverage for musical instruments, electronics, recreation and sports equipment and luxury items. Each policy includes identity protection features. MetLife's rebates include claim-free, multi-policy, employer and protective device discounts.
State Farm's standard policy includes replacement cost coverage and inflation coverage. Add-on coverages include identity theft, waterbed liability, sewer or drain backup, additional insured and personal injury liability coverage. For an extra cost, you can also get earthquake coverage, additional liability coverage and additional business property coverage. Discounts are offered for home protection devices and multiple policies.
Largest Renters Insurance Companies in New Jersey
Based on market share, the biggest insurance carrier in this state is New Jersey Manufacturers, with 11%. It is followed by State Farm (10%) and Allstate (9%). These three providers account for over 30% of the renters insurance policies issued in the state. It’s ideal to choose a large insurance company, as it is more likely to have the deep pockets to reimburse claims without trouble.
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Average Cost of Renters Insurance in New Jersey
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The average annual rate of renters insurance in New Jersey is $104, about $56 less than the national average. These prices are for a basic policy that offers personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
New Jersey residents can get good savings by comparing renters insurance packages. For example, the difference between the cheapest and costliest providers in the state is $56. This means you can save nearly $5 per month by merely opting for the most affordable carrier.
What Factors Impact Renters Insurance Cost in New Jersey
Many factors influence your renters insurance price in New Jersey. Among them, the following criteria have the most impact on the amount you need to pay.
- Location: Your neighborhood is important because localities with a higher risk of crime or extreme weather are generally costlier to insure.
- Coverage amount: If you purchase add-on coverage, your premium will be higher.
- Deductible: Insurers include a deductible in your policy as a fee you need to pay before they process your claim. To reduce your monthly premium, you can buy a plan with a higher deductible, but you’d need to pay more out of pocket if you file a claim.
- Actual Cash Value (ACV) vs. Replacement Cost Value (RCV): The insurance carrier will assess the ACV or RCV of your items before reimbursing you. ACV plans evaluate that your possessions lose value over time, so they’ll only pay depreciated prices for used items. RCV packages will pay you for a new product of similar type and quality. RCV policies have higher payouts, and therefore, higher premiums.
- Credit Score: A good credit score can not only help you get a loan more easily but can also help you get a discount on your renters insurance premium. Conversely, if your credit score is low, your premium will be higher because providers will consider you riskier to cover.
Renters Insurance in New Jersey: What You Need to Know
It’s smart to get renters insurance in New Jersey because it offers protection for your assets at a relatively affordable cost.
In New Jersey, about 34% of people are renters and the average monthly rental rate is $1,376. The average monthly renters insurance premium in the state is $9, which is 0.63% of the rent price. This cost is for a standard policy with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible.
What Renters Insurance Typically Covers in New Jersey
To make a successful claim, you should understand what your renters insurance policy in New Jersey covers and excludes. Basic coverage includes personal property, liability insurance, additional living expenses and medical payments.
In New Jersey, personal property insurance will typically cover damages caused by major natural disasters like hurricanes, tornadoes, thunderstorms and others.
What Renters Insurance Typically Does Not Cover in New Jersey
Standard renters insurance coverage in New Jersey generally excludes these common issues:
- Flooding: Renters insurance typically covers water damage from a broken pipe or main, but not flooding from a natural disaster. If you live in an area prone to flooding, you may want to get coverage via the National Flood Insurance Program (NFIP).
- Earthquake Damage: A basic policy typically excludes earthquake damage, and you’ll need to purchase add-on coverage if you want earthquake insurance.
- Structural Damage: Renters insurance will only cover your personal assets and not damage to the building structure. This is your landlord’s responsibility.
- Roommate Property: Your roommate is responsible for buying their own coverage, as their possessions are excluded from your policy.
- Expensive Items: For high-end or costly items that exceed policy limits (like jewelry), you need to buy an additional rider.
Read the fine print of your policy to understand what it covers and omits. This knowledge can help you file a claim that gets accepted and reimbursed.
FAQs About Renters Insurance in New Jersey
Renters Insurance in New Jersey Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from five of the top insurance companies in New Jersey provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across New Jersey. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000, liability coverage of $100,000 and a deductible of $500.
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