Home Insurance in New Jersey


UPDATED: DEC 2020 | 1 MIN READ

New Jersey isn’t actually a bad place for homeowners insurance. It can be a little costly due to environmental perils and high property values, but the relatively high incomes of residents put typical homeowners insurance costs back that much closer to the median.  

  • Fun fact – New Jersey, with its 525 diners located within state borders, is the “Diner Capital of the US”! 

Average Rates in New Jersey

If you take all fifty states and list them from the most expensive to the least expensive for home insurance, New Jersey falls somewhere in the middle at #23. What does that mean for you, as a homeowner? Even though New Jersey is closer to the top, it means you’ll be paying slightly less than the national average for your annual premiums. Almost $20 less, in fact (average premiums are around $1,192 for most New Jersey homeowners, as opposed to $1,211 across the country). 

Renters are fairing pretty well, too. While most people who are renting a home or apartment in the US right now are paying about $180 a year further coverage, New Jersey renters only have to pay about $165. It might not sound like much, but if you’re on a tight budget, paying a little less for insurance can be a small relief. 

New Jersey Legal Insurance Requirements

What about special legal insurance requirements within the State of New Jersey? Well, like most states, homeowners insurance isn’t technically required according to state or local laws. But if you currently have a mortgage on your home, your lender will most likely require you to carry some sort of coverage. Luckily, you’re currently living in a state where these annual premiums are highly affordable. So getting adequate coverage for your dwelling, property, and external structures shouldn’t be too big of a challenge. 

Common Risk Factors in New Jersey

Windstorm damage (hurricanes and nor’easters) snow, and flooding are the biggest problems for homeowners in New Jersey. Over 95,000 single-family homes in New Jersey are currently located in an “extreme risk” area. Flood and Windstorm insurance are essential (if your home insurance policy doesn’t cover windstorm damage, that is). Snow is usually covered on standard home insurance policies, as is windstorm damage – usually with a separate (and more expensive) deductible though. 

Some readers may be asking themselves: what happens if you live in a very high risk area, and conventional homeowners insurance is either too expensive, or unavailable? Well, you can turn to the New Jersey Insurance Underwriting Association in order to find insurance coverage. Keep in mind, however, that it will not be cheap. FAIR insurance is a last-resort option for only those homeowners who absolutely cannot get conventional insurance coverage anywhere else. So we strongly suggest you shop around and search for any and all possible better deals before you resort to this sort of high risk coverage. 

Insurance Demographics/Statistics in New Jersey

There are many different factors that go into calculating what you will pay for your annual homeowners insurance premium. We’ve already discussed the most important ones. Your specific location and the risks that exist in that location can make or break your annual costs. But there are other important factors that you should be made aware of so that you get the best understanding of why your insurance company is charging you the price they are.

  • Home Value: Surprisingly, although this definitely differs from city to city, the average price for home in New Jersey is $342,527 dollars. Believe it or not, that’s almost $100k more than the national average. Such a major difference in price will likely make your home insurance premiums more expensive, since you will have to purchase much more coverage to secure your home. 
  • Property Crime: Fortunately, property crime statistics in New Jersey are a lot better than they are in other parts of the country. Nationally, the average homeowner only has a 1 in 43 chance of becoming a victim of property crime; in New Jersey, however, that chance is less frequent. There were 14.05 incidents of property crime per 1,000 residents last year, which gives you a 1 in 71 odds of having property crime happened to you.
  • Annual Income – How much do you make each year? The average New Jersey homeowner is making around $81,740. This is important because the more money you make, the more your homeowners insurance company will trust you to make regular payments on time. Most homeowners get at least a modest discount thanks to this proof of financial responsibility.
  • Education: Another thing homeowners insurance providers like to offer discounts for is having a higher education. Fortunately, that’s more likely in New Jersey than it is in other parts of the nation. 39% of New Jersey residents have a bachelor’s degree or higher – compared to 32% of the US as a whole. It might seem unfair, but insurance companies see people with a higher education as more likely to be financially responsible, and therefore less risky. Insurance companies reward lower-risk customers with better rates and, for better or worse, charge higher rates to people who pose a greater risk. 

Where To Purchase Home Insurance in New Jersey

We admit we’re a little bit biased, but we think you should shop online with us here at AgileRates.com. But we have good reason to think so. Did you know, for example, that fewer than 44% of homeowners shop around for a better deal each year when their policy is up for renewal? And of those, only 17% compare rates online, which is the easiest and quickest way to shop around.

That means 56% of people who own their own home don’t bother to at least shop around and see if there aren’t better rates available each year when their home insurance needs to be renewed. What’s even more unbelievable is that of those who do shop around, 83% aren’t comparing rates among different companies online. That’s hard to believe! It’s so much easier and quicker to compare quotes online at websites like ours than it is to call around and get quotes directly from insurance companies. And if you do it with us, you know that based on our seasoned experience in the industry, we will only show you the best quotes from the most reputable companies near you. So start shopping with us today, and get ready to save a ton of money!

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