NEW JERSEY STATS
On average, New Jerseyans are paying $2,398 every month on homeownership costs. There are 3.6 million homes in the Garden State, 64% of which are occupied by owners.
- Population: 8,908,520
- Average value of homes that’s occupied by owners: $321,100
- Households: 3,199,111
- Average household income: $76,475
- High school grad or higher, percent of people age 25 years +: 89%
- Average travel time to work: 32 min
The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.
New Jersey is a high-risk state for homeowners. Recently the Insurance Information Institute (III) stated that 32 percent of homeowners in New Jersey live along the coast. The coast is vulnerable to hurricanes which equates to a possible higher rate of claims payout in the area. Superstorm Sandy that occurred in 2012 in New Jersey confirmed the importance of having a homeowners insurance policy.
The good news is that the premiums in the state have remained comparatively low. New Jersey insurance premiums are almost at par with the national average premium despite risks. Homeowners insurance includes the hurricane deductible equal to the 5 percent of the home’s value. When signing up for an insurance policy, homeowners should ensure the deductible does not exceed 5 percent.
New Jersey average premiums
In 2016 (latest available data), III recorded that New Jersey’s annual average home insurance premium was $1,174, while the nationwide annual premium stood at $1,192. Despite New Jersey’s risks, the difference in the national and the state’s premium is only $18. Therefore, homeowners in New Jersey will pay an average monthly premium of $98.
All over New Jersey, however, the premium rates do vary slightly. A homeowner will pay premiums depending on the value of your assets, the size of your home and the exact location where your home is in NJ. It might be a little higher or lower than the average monthly premium.
Average New Jersey Home Insurance Premiums
| 2016 | 2015 | 2014 | |
|---|---|---|---|
| Monthly average | $98 | $95.75 | $91 |
| Annual average | $1,174 | $1,149 | $1,092 |
| National annual average | $1,192 | $1,173 | $1,132 |
| Rank | 22 | 21 | 21 |
Our Best Companies In New Jersey By Market Share
To arrive at the top three insurance companies, we used III’s information on the home insurers that hold the largest market share in New Jersey. Apart from good coverage, the deductibles, strong financial backing, discount opportunities, and great customer service were used to rank our top three home insurance companies in the state. In addition, our rankings also relied on reports from independent agencies and review websites. We are not able to review all of the companies that offer home protection in NJ, therefore it’s possible that a company not mentioned in this article will be better suited for you and your individual case, be it they provide better coverage or better rates or both. It’s always advised to do good and thorough research on prospective companies and compare quotes. Our free online tool helps you get started by providing you with a list of homeowners insurance providers in your area.
State Farm
State Farm has good ratings all around. It scooped an A++ (Superior) from AM Best for having a good financial base. In addition, State Farm also got a top customer satisfaction rating from J.D. Power. The agency gave the insurance company three out of five stars for their exceptional services. S&P also gave State Farm an AA (Very Strong) review.
State Farm controls 10.8 percent of the total homeowners insurance market in New Jersey. That fact was confirmed when the company recently wrote a total of almost $290 million direct premiums to homeowners in New Jersey in 2017. The high total amount shows that the company is committed to helping its customers.
State Farm also provides an educative online site to homeowners in New Jersey. The site has detailed and customized information on State Farm’s policies and coverage information. In addition to that, generating a quote only takes a few minutes. The State Farm site gives one an opportunity to make an adjustment on the deductibles and change prices.
Homeowners can insure with State Farm to save on costs by taking advantage of discounts they offer. One point to note is that New Jersey homeowners are supposed to pay for the hurricane deductible. Typically, the hurricane deductible will be about five percent of your home’s value. However, 5 percent is higher than the normal standard deductible.
New Jersey Manufacturers
One thing about New Jersey Manufacturers (NJM) is that it sells its insurance only to homeowners with membership. The company controls 9.5 percent of the total home insurance market share in New Jersey. The market is inclusive of both public, civil servants and their loved ones. The company also covers people working with the Business and Industry Association.
Compared to other top companies it has a wider selection of policies, therefore, it’s a great option for starters. Boaters have the optional coverage for watercraft that includes: pontoons through a partnership with American Modern Insurance, jet skis and cruiser boats.
NJM stands out of the crowd because of its unique features like the dividend program. The program ensures that when the company makes a profit, it is shared to all its policyholders. The dividends make part of the annual premium that one is supposed to pay annually. The company site states that it has paid dividends since 1918.
NJM is among the few companies that offer flood cover. However, the flood policies are purchased through FEMA separately. Still, the company offer flood insurance through their subsidiary called New Jersey Re-Insurance. They still maintain one website to manage both flood and home insurance.
NJM offers a useful tool called the Buyer’s Guide. The guide educates on home insurance shopping, how to make a home storm proof and deductions on hurricane expenses.
Allstate
According to III, in 2017 (latest available data), Allstate has the third largest market share of 9.3 percent with direct premiums written totaling to $249 million in NJ. Allstate in New Jersey has attracted higher ranks compared to other insurance companies. It has 3 (About average) out 5 Power Circle Rating from JD Power. This means that its customer satisfaction and general performance is satisfactory and within the industry average. It has good financial stability following an A+ (Superior) rating by AM Best and an AA (Very Strong) from S&P.
In addition to customer care, Allstate’s website is well set for use, especially for starters. It has calculators and countless resources to educate the client. The coverage options observed through the website, are wide, customizable and affordable.
Allstate Corp has many automatic discounts making its quotes slightly cheaper compared to other companies. Allstate reduces rates on maintaining a smoke-free home, auto insurance, autoplay set up, staying claims free and many others. Allstate has the highest number of discounts in the entire state.
New Jersey Home Insurance Companies: Market Share and Summary of Ratings
| Rank | Insurer | Market Share % | AM Best | S&P | JD Power |
|---|---|---|---|---|---|
| 1 | State Farm | 10.8 | A++ | AA | 3 |
| 2 | NJM | 9.5 | A+ | NR | NR |
| 3 | Allstate | 9.3 | A+ | AA | 3 |
| 4 | Liberty Mutual | 8.9 | A | A | 3 |
| 5 | Chubb | 7.0 | A++ | AA | 3 |
| 6 | Travelers | 4.9 | A | A | 3 |
| 7 | Plymouth Rock of New Jersey | 4.4 | B++ | NR | NR |
| 8 | American Family | 4.2 | A | NR | 3 |
| 9 | USAA | 4.1 | A++ | AA+ | 5 |
| 10 | National General | 3.1 | A- | NR | NR |
Source: Insurance Information Institute, AM Best, S&P, JD Power
What Is Homeowners Insurance?
New Jersey homeowners insurance is no different from any other kind of policy. Just like health insurance or car insurance, it is a monthly premium that you pay in exchange for the insurance company agreeing to support you financially when something bad happens.
Your monthly premium goes towards coverage in the event of any damage to your home. Most policies are comprehensive, covering everything from fire to home invasion and far beyond.
The one exception is flooding, which is often left out of homeowners insurance policies. Be careful to get a separate flood insurance if you live in an area where that is a risk. It’s important to think about this ahead of time. Once the damage takes place, it is too late to get insured.
Tips On Saving Money
You may be able to get a cheaper policy if you make certain concessions in your coverage. For example, some policies cover the cost of home repair while others pay out in cash based on the value of the areas damaged.
While it is possible to save money with a “value” policy as opposed to a “repair” policy, it is very risky. You may be better off to get a fuller policy with the best coverage, especially if your location is considered high-risk.
In the end, only you can decide what policy is right for you. Make sure that you get some kind of coverage as soon as possible so that you and your New Jersey home are protected. It’s almost always a great idea to get a comprehensive insurance policy for your home.
The bottom line
Geographical disparities in New Jersey presents different home insurance premiums depending on your location. For instance, if you reside at Garden estate the annual premiums you will pay will amount to $1,092 almost close to the national average premium. How you will pay the policy also relies on what home insurance provider you will choose. The provider you choose will also determine how well you will be compensated after a disaster strike. Therefore, it is important to choose the homeowners insurance company that will cater to all your needs. Use our free comparison tool by submitting your Zip code to get started with a list of home insurers in your area.
The cost of your personal insurance policy will depend on the value of your home. However, it is still useful to take a look at the average cost of insurance in your state.
When you get New Jersey home insurance, you are looking at an average total yearly premium of $1,174. This is very close to but slightly less than, the national average of $1,192. You can feel good knowing that your state is an affordable place for this kind of policy.Homeowners insurance is one of the most important policies you can get to protect yourself for the future. In the event of an emergency, your well-being could be completely dependent on the quality of your insurance policy.
It is impossible to predict when a catastrophic event could cause serious damage to your home. Nobody expects that it will happen to them. If a natural disaster, gas leak, or other unexpected scenario makes your home uninhabitable, how will you react?
Make the important move of getting a good policy now, before the emergency happens. You want to be sure that you will have a safe place to live no matter what.
Resources:
Insurance Information Institute
For more assistance, please contact your local state department of insurance:
New Jersey Department of Insurance
- 609-292-7272
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