Homeowners insurance in New Jersey averages about $1,200 a year for $300,000 in dwelling coverage. That's a lot less than the national average of $2,341, but still an increase of more than 15% since 2018.
The amount an individual resident will pay depends on many variables, including the location, age, size and condition of their house, as well as their credit score and claims history.
Every insurance company looks at these factors differently when assessing your premiums.
CNBC Select has chosen the best homeowners insurance in New Jersey, based on cost, coverage options, customer satisfaction and other factors. (See our methodology for more on how we made our selections).
Best for affordability: Selective
Selective Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
Selective offers homeowners insurance in 15 states that can be a good fit for those with high value homes and those who want to enhance a standard homeowners policy with additional options. The company's homeowners insurance offers the option to buy additional coverage like service line coverage, coverage for home systems like central air and furnaces, and coverage for flooding on top of a standard homeowners insurance policy.
Pros
- Selective's Platinum Policy offers replacement cost coverage for non-building structures and jewelry coverage.
- Flood insurance coverage also available through Selective
- Claim service available 24/7
Cons
- Homeowners insurance only available in 15 states
- Quotes and buying not available online
- Few discounts available
Who's this for: Selective offers the most affordable rates for homeowners insurance in New Jersey, while still offering customization and the comfort of working with a professional insurance agent.
Standout benefits: Optional coverage enhancements include an inland flood endorsement, coverage for water leaks (with select policies) and standalone flood insurance from the National Flood Insurance Program.
Average rate in New Jersey: $531 a year
Best for customer satisfaction: NJM
NJM Homeowners Insurance
Policy highlights
NJM offers a generous number of discounts, as well as a guaranteed replacement cost coverage option. Add-ons include identity fraud coverage (up to $15,000) and counterfeit money protection up to $50,000.
Maximum coverage
Not disclosed
Availability
Connecticut, Maryland, New Jersey, Ohio and Pennsylvania
Pros
- Competitive rates
- Discounts for non-smokers
- Few customer complaints
Cons
- Only available in a few states
Who's this for: NJM stands out for having a relatively low complaint index from the National Association of Insurance Commissioners.
Standout benefits: NJM offers a wide variety of endorsements, including coverage for mold and bacteria, for earthquakes and increased coverage for valuable personal property.
Average rate in New Jersey: $731 a year
Best for people who rent their homes out: Allstate
Allstate Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Allstate's homeowners insurance combines strong track records for customer satisfaction with affordability. While not available in all states, it is widely available across the U.S. It's also willing to work with homeowners who have unique needs like those with homes over 100 years old. Special features including unique homesharing coverage can help make your homeowners insurance policy even more useful.
Pros
- Offers several discounts, including bundling discounts for bundling home and auto insurance
- Coverage is available in all 50 states and Washington, D.C.
Cons
- New policies not available in California
Who's this good for? Do you list your home on Airbnb or other home-share platforms? Allstate's HostAdvantage endorsement covers belongings damaged or stolen by Airbnb guests or other short-term renters for up to $10,000 per rental period.
Standout benefit: Allstate's Enhanced Package shaves $100 off your deductible each year you go claim-free (up to $500) and takes 5% off your renewal rate if you didn't file a claim the year prior. It also has a Claim RateGuard, which keeps your rates from going up after filing a claim.
Best for extended replacement cost: State Farm
State Farm Homeowners Insurance
Cost
The best way to estimate your costs is to request a quote
Maximum coverage
Not disclosed
App available
Yes
Policy highlights
State Farm's homeowners insurance offers coverage that's easy to bundle with other types of insurance and covers things like fire, theft or vandalism. It offers several discounts for home security systems and wind mitigation.
Does not cover
Business or professional services, damage from flooding or underground water, earthquakes or mudslides, settling or deterioration, and animals, birds or insects.
Pros
- Lots of optional coverages available
- Ability to bundle policies and save with auto or term life insurance policies
Cons
- Online quotes not available in all states
- Does not offer new homeowners insurance policies in California
Who's this for: If your home is insured for its estimated replacement cost, State Farm will automatically extend your dwelling coverage by up to 20% over your chosen limit. Replacement cost coverage for your personal belongings also comes standard.
Standout benefits: Optional add-ons include coverage for earthquakes, sewer or drain backups and breakdown of home systems.
Average rate in New Jersey: $1,281 a year
Best for military families: USAA
- USAA Perks™ has discounts on moving and storage, home security and cleaning services
- Claims-free discount available
- Covers uniforms and equipment for active-duty members
- Coverage and discounts are not available in all states
- Must become a USAA member in order to get a quote
Who's this for: Available to current and former service members, USAA has lower-than-average rates and a customer service team trained in the unique needs of military families.
Standout benefits: While replacement cost coverage is extra with many companies, it comes standard with USAA.
Average rates in New Jersey: $1,082 a year
What does homeowners insurance cover in New Jersey?
Homeowners insurance in New Jersey covers your property and personal belongings from covered events, like fire, theft and falling objects. It also protects you if someone is injured on your property and can pay for living expenses if you need to relocate while your home is repaired.
Homeowners insurance doesn't cover normal wear and tear, mold, mildew or termites or other pests, especially if proper precautions weren't taken.
Damage from flooding from outside the home requires a separate flood insurance company, either from the National Flood Insurance Program (NFIP) or through a private provider.
How to save on homeowners insurance in New Jersey
You can save on premiums in several ways.
Step 1: Shop around
Get rate quotes from at least three providers, requesting the same coverage limits and deductibles. You may also want to ask people in your neighborhood what insurance company they use and the rates they pay.
Step 2: Bundle insurance
If you buy home and auto insurance from the same company, you may qualify for a discount. Some providers reduce premiums for combining other insurance products, as well.
Step 3: Improve security and safety features
Many providers will lower your rate if you have fire alarms and automatic sprinklers, burglar alarms and other security systems.
Step 4: Increase your deductible
Raising your deductible will typically lower your premiums. Just make sure you have enough money to pay the extra out-of-pocket costs.
Step 5: Improve your credit score
In New Jersey, insurers can consider your credit history when determining approval and premiums. You can improve your credit-based insurance score by paying bills on time and in full, lowering your debt-to-income ratio and checking your credit report for errors.
If you get turned down for homeowners insurance in New Jersey
Being turned down for homeowners insurance doesn't mean you can't get a policy.
- Find out why you were rejected: There may be a way for you to appeal or remedy the issue.
- Ask neighbors or the home's previous owner which insurance company they used.
- Try several other insurers that offer policies in New Jersey and compare rates.
- Finally, try the New Jersey Insurance Underwriting Association, the state's insurer of last resort. To be eligible, you must be unable to find coverage elsewhere or have been quoted unaffordable rates.
More on the best New Jersey homeowners insurance
Selective
Selective has been issuing homeowners insurance since 1926 and has the most affordable policies in New Jersey of any company we reviewed.
NAIC complaint index: Fewer complaints than expected
J.D. Power customer satisfaction ranking: Not ranked
NJM
NJM, or the New Jersey Manufacturers Insurance Company, was founded in 1913 to provide workers' compensation coverage. Today, it issues homeowners, condo, renters, auto and umbrella insurance in Connecticut, Maryland, New Jersey, Ohio and Pennsylvania.
NAIC complaint index: Far fewer complaints than expected
J.D. Power customer satisfaction ranking: Not ranked
Allstate
Allstate was the second-largest homeowners insurance company in 2024, with more than $15 billion in direct premiums written. It's received an A+ (Superior) financial strength score from A.M. Best, the agency's highest grade and a good indicator of its ability to pay out benefits.
NAIC complaint index: More complaints than expected
J.D. Power customer satisfaction ranking: Below average
State Farm
The largest home insurance provider in the U.S., State Farm wrote $31.4 billion in direct premiums in 2024. One of our top picks for car insurance, it has a discount of up to 17% for bundling home and auto policies.
NAIC complaint index: Fewer complaints than expected
J.D. Power customer satisfaction ranking: Above average
USAA
Available to veterans, military members and their families, USAA has a strong track record for customer satisfaction. Home policies have no deductibles for military gear or uniforms and up to $10,000 for belongings damaged in an act of war.
NAIC complaint index: Fewer complaints than expected
J.D. Power customer satisfaction ranking: USAA is not officially ranked by J.D. Power but it has the highest score of any provider on its list.
New Jersey homeowners insurance FAQs
How much is homeowners insurance in New Jersey?
In 2025, the average cost of homeowners insurance in New Jersey was about $1,200 a year for $300,000 in dwelling coverage. That's significantly lower than the national average of $2,341, but represents a 15% hike since 2018.
What is the best homeowners insurance in New Jersey?
The best homeowners insurance company in New Jersey varies based on your needs, but comparing quotes from NJM, State Farm, USAA and Selective can help you find the best price.
What is the cheapest homeowners insurance in New Jersey?
What does homeowners insurance cover in New Jersey?
Homeowners insurance generally covers damage to the structure of your home and surrounding structures, like a fence or garage. It can also cover stolen or damaged personal property, pay for bodily injuries that a visitor sustains while on your property. You may need a separate policy to cover your home from hurricanes, floods or earthquakes.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of insurance products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.
Our methodology
To determine the best homeowners insurance companies in New Jersey, CNBC Select analyzed more than a dozen companies offering policies in the state.
We focused on cost, coverage offered, deductibles, claims filing, the enrollment process and customer support.
For cost, we examined sample premiums gathered from Bankrate, based on $300,000 of dwelling coverage. In addition, we reviewed customer satisfaction ratings from J.D. Power, complaints registered with the National Association of Insurance Commissioners and financial strength ratings from A.M. Best.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Based on these criteria, our selections for the best homeowners insurance in New Jersey are:
- For affordability: Selective
- For customer satisfaction: NJM
- For people who rent their homes out: Allstate
- For extended replacement cost: State Farm
- For military members and their families: USAA
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