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Shopping for the right homeowners insurance is one of the savviest financial moves you can make as a homeowner. That's because homeowners insurance is designed to prevent financial peril in the event your home is damaged or destroyed. Here, we take a dive into the best homeowners insurance in New Jersey, show you where to buy the least expensive policies in the state, and outline other key factors to search for when shopping for a New Jersey home insurance policy.
These three companies offer truly cheap homeowners insurance in New Jersey:
There are many benefits associated with moving into a brand new home, including the fact insurance premiums tend to cost less. Since all the major components of the house are new, insurers don't have to worry about paying claims right away. They pass some of that expected savings on in the way of lower homeowners insurance premiums. Here are the three cheapest New Jersey home insurance providers for newly-built homes:
History and character shine through older New Jersey homes. The only fly in the ointment of owning an older home is homeowners insurance tends to cost more. That's because an older structure is more likely to suffer from issues like mold, leaky basements, and damaged roofs. Still, these three companies have found a way to insure old New Jersey homes inexpensively:
It may be frustrating, but after a claim is made, there's a good chance the cost of New Jersey home insurance will increase -- if only for a time. These three insurance companies offer the lowest rates in the state for homeowners who have previously filed a claim:
The average cost of homeowners insurance in New Jersey is $822, 52% lower than the national average of $1,725.
|Average Rate Category||New Jersey||National Average|
|New home construction||$483||$943|
|When making a claim||$874||$1,803|
As a homeowner searches for the best homeowners insurance in New Jersey, it's important to look at more than price. Here are some other things worth considering when shopping for coverage.
There are six distinct types of policies designed to cover traditional (non-mobile) homes. They range from basic coverage to policies that cover all the bells and whistles. The best homeowners insurance companies offer them all. The first thing a homeowner should do is determine the level of coverage they require and compare policies offering that level of protection.
A bare-bones insurance policy may be cheap, but will it provide the coverage a homeowner needs if their home is damaged or destroyed? Shopping for a low price is great, but only when it includes shopping for enough coverage to protect the homeowner if they need to make a claim.
A deductible is an amount a homeowner must pay toward a claim. Let's say a bathroom leaks into a finished basement. The total cost of the repair is $15,000 with a $1,000 deductible. The homeowner pays the contractors $1,000, and the insurance company covers the remaining $14,000.
One way to find cheap homeowners insurance in New Jersey is to use policy discounts. Before deciding which insurance company provides the best fit, a homeowner should find out how much each policy will cost after discounts are factored in. It would be rare to find an insurance company that does not offer home insurance discounts. These discounts range from paying the policy upfront (rather than in monthly installments) to installing an alarm system or smoke detectors.
The fact that New Jersey enjoys all four seasons means the state gets it all -- wind, rain, snow, ice, flooding, and the occasional tornado. However, not every homeowners claim is associated with a weather-related event. Here are some of the most common claims statewide.
New Jersey winters can be harsh. Winter can also lead to things like ice dams and roof damage. Spring flooding is one of the reasons basements flood and roof leaks are discovered. There are also claims associated with burst water pipes and leaky appliances.
Nationwide, fire and lightning damage accounts for 25% of all homeowners insurance claims. Given the number of thunderstorms experienced in New Jersey, it's no surprise fire and lightning are among the most common insurance claims in the state.
Wind damage is another common claim. Between falling trees and blowing objects, wind damages roofs, siding, and other exterior features of the home.
While some areas of the state are safer than others, no location is 100% crime free. Whether it's a break-in or broken windows, theft and vandalism are two of the top reasons homeowners file a claim.
Any homeowners looking for an "ideal" policy is likely to find it at the point where comprehensive coverage and low price meet.
Homeowners with a non-mobile home have their choices of six categories of coverage, referred to as HO-1 through HO-8.
Of the eight, one type covers renters, and another covers mobile homes. The six remaining policy types range from basic coverage to protection with all the bells and whistles. For example, a homeowner can pick up coverage for upgraded features, like a fully-outfitted theater room, sauna, or hand-carved wood floors. Homeowners can also protect against the loss of expensive items, like rare coins and artwork.
Finding cheap homeowners insurance in New Jersey depends, in part, on claiming as many discounts as possible. While each insurance company offers a different set of discount options, here are some of the most common:
Each insurance company has its own formula for coming up with premium costs. Typically, insurers consider things like the crime rate, how near (or far) a house is from a fire station, and the value of homes in a particular area. Here are the five Garden State cities with the lowest homeowners insurance rates:
|City Name||Average Home Insurance Rate|
Here are the five most expensive cities in the state for homeowners insurance:
|City Name||Average Home Insurance Rate|
Landing a great New Jersey home insurance policy is just the first step. It makes financial sense for a homeowner to check rates once a year to ensure they still have the level of coverage they desire at the lowest possible price.
Our Insurance Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
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