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CheapRenters InsuranceNew JerseyThe Best and Cheapest Renters Insurance Companies in New Jersey for 2023: Rankings, Reviews and Rates
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To make finding renters insurance easier, MoneyGeek ranked the best and most affordable New Jersey insurers. Our unique scoring system rated the best renters insurance companies in New Jersey based on affordability, financial stability and customer service.
CheapRenters InsuranceNew JerseyThe Cheapest Renters Insurance in New Jersey
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.
Personal Property Coverage:
$20,000
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Cheapest Renters Insurance Companies in New Jersey by City
Based on MoneyGeek’s data, Lemonade is the cheapest renters insurance company in two major cities in New Jersey. Its policies cost an average of $5 per month or $60 annually in Jersey City and $7 per month or $78 annually in Newark.
Companies With the Cheapest Renters Insurance in New Jersey by City
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- CityCheapest CompanyAverage Annual Premium
- Lemonade$60
- Lemonade$78
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Best Renters Insurance Companies in New Jersey
The best renters insurance company in New Jersey is Lemonade, scoring 95 out of 100. The runner-up is USAA for military members and Allstate for everyone else. State Farm ranked fourth for renters insurance in New Jersey. MoneyGeek determined scores based on pricing data from collected quotes, customer service scores from J.D. Power and AM Best financial strength ratings.
Keep in mind that the best renters insurance companies are not necessarily the cheapest, but they offer the best blend of quality and cost. That is important because carriers should be able to support policyholders with effective and timely service at an affordable price.
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Lemonade
Score:95
Lemonade is the overall best renters insurance company in New Jersey. It earned a perfect score on affordability and a high rating on customer satisfaction while being average for financial stability. It offers unique coverages such as landlord property damage, which protects a landlord’s property in case of damage caused by pets or water.
More About Lemonade
Lemonade serves customers in 31 states and Washington, D.C. It offers unique renters insurance add-ons, such as landlord property damage and equipment breakdown insurance. Additionally, it provides three discount opportunities, fewer than the national average of five. If you prefer an online experience, Lemonade gives you a personalized quote through its website. You can download and use its mobile app to view your policy and report claims.
Read MoneyGeek's Lemonade renters Insurance Review2
USAA
Score:92
USAA ranks as one of the best renters insurance companies in New Jersey for eligible military members and their families. It earned perfect scores for customer satisfaction and financial stability and a high score for affordability.
More About USAA
Available nationwide, USAA includes coverages like flood and identity theft coverage in renters insurance policies at no extra cost. You can get a personalized quote on its website, but there is an eligibility screening first, and you must create an online account. The company also has a mobile app you can download to manage your policy.
Read MoneyGeek's USAA renters Insurance Review3
Allstate
Score:79
In New Jersey, Allstate ranks as the third-best renters insurance provider. It got above-average scores for customer satisfaction and financial stability. Allstate offers rare add-on coverages like flood, which helps cover the replacement cost of belongings damaged by floodwater.
More About Allstate
Allstate offers renters insurance policies in every state and Washington, D.C. It has four unique coverages and five discounts, including for automatic payments and retirees. You can get an instant personalized quote through its website. You can use its mobile app to file and track a claim, pay bills and get assistance.
Read MoneyGeek's Allstate renters Insurance Review4
State Farm
Score:75
State Farm earned a perfect score on financial stability and an above-average score for customer satisfaction, but it has the lowest affordability score. As the fourth-best company for renters insurance in New Jersey, policyholders can purchase unique add-ons such as personal injury coverage to protect against defamation of character, libel or slander.
More About State Farm
Renters in every state and Washington, D.C. can purchase renters insurance from State Farm. It offers two add-on coverages and two discounts, which are both fewer than the industry average. State Farm has an online quote tool to get a personalized renters insurance quote. Its mobile app allows you to manage your insurance policy.
Read MoneyGeek's State Farm renters Insurance ReviewMONEYGEEK EXPERT TIP
Choosing the cheapest insurance isn’t always the smartest choice to make. Sometimes, paying more to get the best renters insurance is a better financial decision, saving you money over time while getting excellent customer service.
Largest Renters Insurance Companies in New Jersey
You benefit more from renters insurance companies in New Jersey with a large market share. They tend to be more financially stable, which is vital for addressing claims quickly. Additionally, they have more money to invest in customer service and the user experience, making the process easier for you as a customer.
Company | Market Share | |
|---|---|---|
1. | New Jersey Manufacturers | 10.5% |
2. | State Farm | 10.3% |
3. | Allstate | 9.3% |
4. | Liberty Mutual | 8.4% |
5. | Chubb | 6.4% |
Average Cost of Renters Insurance in New Jersey
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renters insurance is equal to the average.
The average annual rate of renters insurance in New Jersey is $104, about $56 less than the national average.
However, note that 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.
Ultimately, how much renters insurance in New Jersey costs depends on the amount of your personal property. With our calculator below, you can estimate how much insurance you need based on the value of your personal belongings.
clothing
Total:
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You can save more by comparing renters insurance quotes in New Jersey. For example, the difference between the most affordable and expensive companies in the state is around $56. That means you can save nearly $5 per month by choosing the cheapest.
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.
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Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.
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
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.
Standard renters insurance coverage in New Jersey generally excludes these common issues:
- EventDescription
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.
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If you want to understand renters insurance better and what renters insurance covers in New Jersey and what it does not, the New Jersey Department of Banking and Insurance can help. It has a commitment to protect and educate consumers about insurance, money matters and real estate transactions.
For questions and assistance, contact the New Jersey Department of Banking and Insurance through the following channels:
- Phone: 609-292-7272 or its consumer hotline 1-800-446-7467
- Mail: NJDOBI, P.O. Box 471, Trenton, NJ 08625-0471
The department’s consumer hotline is available from 8:30 a.m. to 5 p.m. EST, Monday through Friday.
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FAQs About Renters Insurance in New Jersey
MoneyGeek has answered frequently asked questions about renters insurance in New Jersey to help you choose the policy and company best suited for your needs.
Compare Renters Insurance Rates
Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.
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.
About Mark Fitzpatrick
sources
- New Jersey Department of Banking and Insurance. "State of New Jersey Department of Banking and Insurance." Accessed March 30, 2022.