How much is homeowners insurance in New Jersey?
The average premium cost of homeowners insurance in New Jersey is $751 per year. This is 43% less than the national average of $1,312, making New Jersey one of the more affordable states for homeowners insurance. It is especially affordable when compared to neighboring New York’s average rate of $969 per year, and while it is more expensive than Delaware, it is about on par with the average Pennsylvania rates.
Home insurance in New Jersey
New Jersey is prone to severe weather impacts year-round. In the summer, the potential of strong hurricanes can negatively impact insurance premiums, particularly in Jersey Shore communities. In the winter, nor’easters and other severe storms due to catastrophic winds and the heavy weight of snow and ice buildup can cause property damage to the roofs of homes. Tornadoes are also prevalent in New Jersey in the spring, summer and fall.
Common causes of loss in new Jersey
Common property losses that are typically seen with home insurance claims in New Jersey include:
- Storms and hurricanes: Severe storms and hurricanes pose the highest risks to New Jersey homeowners. As a coastal state that is in the direct line of impact of any hurricane moving up the east coast, home insurance losses due to wind and water damage are common. The torrential rainfall and subsequent flooding that come with summer storms and hurricanes are especially prevalent along the coast, of course, but may also impact residents who live near normally-placid streams or ponds. Nor’easters can cause extensive wind damage and widespread flooding. New Jersey residents can use FEMA’s Flood Map Service Center to find out if they live on a flood plain and if they might consider flood insurance.
- Wildfires: Wildfires can impact those who live in more rural or heavily wooded areas of the Garden State. An average of 1,500 wildfires a year damage forests and the homes that are near them. This is especially true for those in the northern part of the state or the region of the Pine Barrens, where fires can spread quickly because of dry underbrush.
Fortunately, New Jersey is not a high-risk state for earthquakes, although small tremblers occur occasionally. The most severe earthquake ever recorded in the state was a 4.8 quake in 1938. New Jersey is also far from “Tornado Alley” in the Midwest, but occasionally experiences tornado outbreaks, including this past July in areas near the Delaware River.
Home insurance coverage options in New Jersey
As a coastal state, New Jersey sits perched on the Atlantic Ocean, leaving it vulnerable to specific risks. According to the Insurance Information Institute (Triple-I), nearly 100,000 single-family homes and other structures are at extreme risk of hurricane damage. The Triple-I indicates 90% of U.S. natural disasters involve flooding so they recommend all New Jersey homeowners consider flood insurance.
Frequently asked questions
What is the cheapest homeowners insurance in New Jersey?
Home insurance rates are subjective because factors such as location and construction can greatly affect premiums. To find the cheapest homeowners insurance in New Jersey, determine the amount of coverage you need and then shop around for the best combination of value and protection.
What is the greatest risk to New Jersey homes?
Year-round storms and hurricanes pose the greatest risk to New Jersey properties. It’s important to have adequate coverage for perils such as flooding, hail and wind damage.
How much personal liability coverage should I purchase?
Consider the specific features of your home when determining how much personal liability coverage you need. For example, if you own a swimming pool and like to host pool parties, you probably need additional liability coverage in case someone sustains an injury on your property. When requesting insurance quotes, pay close attention to standard liability coverage amounts. Typically, standard coverages range from $100,000 to $500,000.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2026 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate windstorm and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.