The Best Cheap New Jersey Homeowners Insurance for 2024

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.

• Cheapest overall: New Jersey Manufacturers
• Cheapest for new home construction: New Jersey Manufacturers
• Cheapest for older homes: Cumberland Group
• Cheapest for those who have filed a claim: New Jersey Manufacturers

Cheapest overall in New Jersey

These three companies offer truly cheap homeowners insurance in New Jersey:

• New Jersey Manufacturers, with an average annual rate of $443
• Cumberland Group, coming in with an average rate of $453
• Selective, with an average annual rate of $527

Cheapest for new home construction

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:

• New Jersey Manufacturers, offering an average annual rate of $203
• Selective, with an average annual rate of $273
• Cumberland Group, with an average annual rate of $305

Cheapest for older 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:

• Cumberland Group, with an average annual rate of $383
• New Jersey Manufacturers, offering an average annual rate of $425
• Selective, with an average annual rate of $488

Cheapest when you've made a claim

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:

• New Jersey Manufacturers, offering a forgiving rate of $423
• Cumberland Group, coming in with an average annual rate of $455
• Selective, offering an average annual rate of $571

Average home insurance cost in New Jersey compared to the national average

The average cost of homeowners insurance in New Jersey is $822, 52% lower than the national average of $1,725.

New Jersey homeowners insurance overview

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.

Different types of homeowners 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.

Level of coverage

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.

Amount of deductible

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.

Potential discounts

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.

What are the most common homeowners insurance claims in New Jersey?

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.

Water damage and freezing

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.

Fire and lightning

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

Wind damage is another common claim. Between falling trees and blowing objects, wind damages roofs, siding, and other exterior features of the home.

Theft and vandalism

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.

Homeowners insurance coverage options and discounts in New Jersey

Any homeowners looking for an "ideal" policy is likely to find it at the point where comprehensive coverage and low price meet.

Coverage options

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.

Discount options

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:

• Home security system
• Smoke detectors
• Deadbolts
• New home
• Upgraded roof
• Non-smoking
• Company loyalty
• Construction type (specific types of construction score a discount)
• Upfront payment of premium
• Policy bundling

5 cheapest cities in New Jersey for homeowners insurance

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:

5 most expensive cities in New Jersey for homeowners insurance

Here are the five most expensive cities in the state for homeowners insurance:

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.