The Best and Cheapest Renters Insurance in New Jersey for 2021: Rankings, Reviews and Rates

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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Company

Amountper year

1. Lemonade

In 2021, Lemonade ranked #1 for the cheapest renters insurance with $20,000 in personal property coverage in New Jersey.

$69

2. USAA

In 2021, USAA ranked #2 for the cheapest renters insurance with $20,000 in personal property coverage in New Jersey.

$87

3. MetLife

In 2021, MetLife ranked #3 for the cheapest renters insurance with $20,000 in personal property coverage in New Jersey.

$110

4. Allstate

In 2021, Allstate ranked #4 for the cheapest renters insurance with $20,000 in personal property coverage in New Jersey.

$111

5. State Farm

In 2021, State Farm ranked #5 for the cheapest renters insurance with $20,000 in personal property coverage in New Jersey.

$125

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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.

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.

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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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.

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.

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.

Compare Renters Insurance Rates

Ensure you're getting the best rate for your renters insurance. Compare quotes from the top insurance companies.

COMPARE QUOTES