New Jersey Homeowners Insurance

New Jersey homeowners insurance rates average at $57 per month, but your rates may vary depending on the age of your home and the level of coverage you’re interested in. Our New Jersey home insurance guide discusses some additional coverages you may want on your policy, and you can compare New Jersey homeowners insurance quotes for free to find the best price for your policy. Start now!

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Natasha McLachlan is a writer who currently lives in Southern California. She is an alumna of California College of the Arts, where she obtained her B.A. in Writing and Literature. Her current work revolves around insurance guides and informational articles. She truly enjoys helping others learn more about everyday, practical matters through her work.

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Laura Walker graduated college with a BS in Criminal Justice with a minor in Political Science. She married her husband and began working in the family insurance business in 2005. She became a licensed agent and wrote P&C business focusing on personal lines insurance for 10 years. Laura serviced existing business and wrote new business. She now uses her insurance background to help educate...

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Reviewed by Laura Walker
Former Licensed Agent

UPDATED: Nov 6, 2020

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In New Jersey, the average home costs $348,300, and carries an insurance premium of around $691/yr ($57/mo). The cost of New Jersey Homeowners Insurance is related to the coverages and perils the home faces, so become familiar with the sections of your policy and the natural disasters that could affect you:

  1. Dwelling
    The easiest way to describe the dwelling portion of your home insurance policy is to say that it is the part of the insured property you live in. If there are other structures built permanently affixed to the home, those are part of the dwelling. The key is that the dwelling must be the primary residence and only includes structures that contribute to supporting or enclosing the dwelling.
  2. Other Structures
    If it is manmade and not permanently built into the dwelling, it is classified as an “other” structure. Other structures can be secondary residences such as apartments, or they can be support structures like a guard house or a pump enclosure.
  3. Personal Property
    The things you own on the property make up your personal property. From the contents of a jewelry box to the box itself and the furniture it sits of, personal property needs to be documented for the best protection by using a video home inventory that moves from one location to another on the property or in the dwelling and itemizes everything you own in that location.
  4. Loss of Use
    When disaster strikes and you are not able to live in your home for a period of time, the loss of use portion of your homeowners policy will pay you back for the money you have to spend to continue your accustomed quality of life. Loss of use can apply to a portion of the home, such as having to eat at restaurants while your kitchen is not usable. Make sure to save any receipts you get related to the loss of use of your property.

Average New Jersey Homeowner Insurance Rates vs. US

Source: USCB

Cheaper New Jersey Home Insurance

You can save money on home insurance, both by getting discounts for making your home safer and by preventing the need to file claims. Each time you file a homeowner’s claim, the risks associated with your policy increase, and if you can avoid filing claims at all for a few years, you can see your premiums go down dramatically.

  • Home Security
    In New Jersey, the crime rate is 4.41 per 1000 homes. By making sure your home is not one of those that fall victim to burglary and vandalism, you can earn insurance discounts to go along with increased home security. For starters, install a professionally home alarm system that is monitored around the clock by a company that specializes in crime prevention. Follow that up with deadbolts in your entry doors, and then add a fence around your yard, and you’ll be saving even more money on annual premiums.
  • Reduce Insurance Risks
    Risks come from more places than prowlers. The trees around your home may look nice, but dead limbs can be a severe hazard with the potential to destroy buildings and cause other damages, both on your property and that of your neighbors. By removing those dead limbs and trees, you are making your home safer and less risky for insurance companies to cover.
  • Credit Score and Insurance Risk
    699 is the average New Jersey credit score. Insurance companies use credit score to price policies and determine a person’s overall risk. A score of 650 of higher will typically begin to earn discounts on a person’s insurance premiums. It is easy to see how keeping a close eye on your credit score and preventing identity theft is a good way to save money over the long term.

Home Characteristics Affecting New Jersey Insurance Rates

The age and materials used in your home could affect your home insurance costs. Houses that were built out of less expensive materials such as wood are more likely to deteriorate over time, while brick and stone construction has durability that can last the lifetime of the home.

Local Natural Disasters New Jersey Homeowners Should Consider Protecting Against

Understanding the natural perils your home faces can help you prepare for the things that might go wrong. In most cases, your standard home insurance policy will cover storm damages, but flooding is not included in any basic home policy.

  • Earthquakes
    Ranked at 39 out of 51, New Jersey does experience an earthquake on rare occasions. Movements of the earth are not included in a standard policy, so it may be necessary to pick up earthquake protection separately. In some cases, earthquake coverage may only be available from high risk insurance companies.
  • Flood
    New Jersey residents filed 6,420 claims in 2009, leading the nation in flood claims by a substantial margin. Flood insurance must be purchased separately and may only be available through high risk brokers or the FAIR plan.
  • Hail
    Hail is common in all states, but it is also usually considered as wind damage and covered in a standard policy. As long as it has not been excluded in writing in your policy, hail is not a peril you have to worry about.
  • Hurricanes
    Hurricanes can strike New Jersey, but most hurricane damage is covered under the wind damages section of your policy. The largest problem you may face from hurricanes is flooding, unless hurricane related damages are specifically excluded from the policy.
  • Tornadoes
    With only a single tornado expected in an average year, New Jersey home owners have nothing to worry about. You should make sure that tornadoes are not specifically excluded from your policy, just to be on the safe side, because tornadoes are typically considered wind damage and would be included anyway unless the insurance company made them an exclusion on the policy.
  • Wildfires
    on average, there are 74,749 wildfires each year, and they can spring up in any state. Unless wildfires are excluded from your policy, they fall under the category of fire damage and are included in the standard home insurance policy.

New Jersey Homeowners Insurance Optional Coverages

There are things more important than reducing your coverage. Your personal property and liability coverages could both be lower than you need, for instance. Anyone with more personal property than 10% of the home value, and that means most people, need to pick up additional coverage or at least increase the limits in their home policy. And the liability coverage on your home is sufficient to pay for injuries but it may not be good enough to cover lawsuits related to those injuries. For that, the most affordable route is to add an umbrella liability policy which works for both your home and auto.

Important Contact Information

New Jersey Department of Insurance
20 West State Street
PO Box 325
Trenton, NJ 08625
Phone: (609) 292-7272
Website

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