Best Homeowners Insurance in New Jersey 2020

 Best Homeowners Insurance in New Jersey 2020

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With a New Jersey home insurance policy, you can protect your home with dwelling, other structures, personal property, additional living expenses, liability, and medical payments coverage for about $99 per month. While home insurance may cost more than other types of insurance policies, you’ll get peace of mind that you won’t have to pay for expensive repairs or replacements out of pocket should disaster strike.

To learn how to find the best homeowners insurance in the Garden State, read our review below. For a free quote, call 855-948-5219 or enter your zip code in the tool below:

Best Homeowners Insurance Companies in New Jersey

We ranked home insurance providers based on customer service, pricing, and coverage. These are our top picks for New Jersey.

1. Travelers

Travelers has the most experience in the home insurance industry compared to the providers in this review. While Farmers has 92 years of experience and Lemonade has four, Travelers has over 160 years of industry experience. With a Travelers home insurance policy, you get dwelling, other structures, personal property, loss of use, personal liability, and medical payments to others coverage.

Here are some other benefits that Travelers offers:

  • Discounts for being claim-free or being a new homebuyer
  • Claims center that’s open 24/7
  • Up to $10,000 per person for medical payments coverage

2. Farmers

Farmers allows customers to completely customize their home insurance policy. While most companies decide dwelling, other structures, personal property, and loss of use coverage based on your home rebuilding cost, Farmers allows you to determine those amounts yourself. You can also select liability and medical payments to others coverage amounts.

A Farmers policy also comes with the following benefits:

  • Deductibles split up by peril
  • Up to $2 million worth of personal liability coverage
  • Mobile app and customer portal to handle policy and claims questions yourself

3. Lemonade

Lemonade is new to the insurance industry but has created a unique home insurance experience with customizable valuable item coverage and a Giveback program that donates unused policy money to the charity of your choice. With a Lemonade policy, you get the same areas of coverage as Travelers and Farmers, minus the other structures protection.

Here are some other unique features of Lemonade home insurance:

  • Add-on for swimming pool liability
  • More affordable than other providers listed in this review
  • Fast claims process where most claims are approved and paid for instantly

To get a free quote from Lemonade, visit the company’s website.

New Jersey Homeowners Insurance Coverage

Most New Jersey home insurance policies include the six areas of coverage:

  1. Personal liability—This part of a policy pays for medical bills and repair or replacement costs if you’re responsible for causing bodily injury to someone or damage their personal belongings. It also covers legal fees if you’re sued. We recommend purchasing at least $300,000 worth of this protection.
  2. Medical payments to others—If someone is injured in your home or on your property, your home insurance policy will pay up to a certain amount of their medical bills. A typical amount to purchase is $1,000 per person.
  3. Dwelling—This type of coverage covers the cost to rebuild your home. This includes everything built into the home, like cabinetry, flooring, exterior walls, and interior walls. To determine how much of this coverage to purchase, use the estimate the insurance company gives you, talk to a local real estate appraiser, or purchase $100–$155 of protection per square foot.
  4. Other structures—This will cover structures on your property not attached to the home, like fences and garages. It usually comprises 10% of dwelling coverage. Travelers and Farmers allow you to customize this amount, but Lemonade doesn’t offer this coverage at all.
  5. Personal property—This covers the cost to replace your items if they’re damaged by a covered peril, like fire or theft. Most policies are actual cash value, which means your items will be replaced based on their depreciated value. However, you can usually buy an endorsement to turn the policy into a replacement cash value policy that replaces the items with new ones. This coverage usually makes up 50% of dwelling coverage.
  6. Loss of use—If your home receives damage, forcing you to live elsewhere during repairs, you can be reimbursed for living expenses during that time. You will usually get 20% of dwelling for this type of coverage.

Insurance companies usually offer endorsements that you can tack onto your policy for an additional cost each month. Common endorsements include discounts for water backup, jewelry, personal property replacement cost, and identity fraud expense.

How Much Does a Homeowners Insurance Policy Cost in New Jersey?

In 2017, New Jersey home insurance costs a little over $99 per month, according to the Insurance Information Institute. The average cost for home insurance at the time was around $101 per month.

Factors to Consider Before Buying Homeowners Insurance

Consider these factors and how they will affect your home insurance rates as you begin searching for a policy:

  • Level of crime in your area—When you input your address for a quote, the insurance company will look at the crime rates in your neighborhood. If your home is in an area with a high level of crime, it may be considered riskier to insure, which could lead to a higher premium.
  • Valuable items—Most home insurance policies won’t cover valuable belongings, like jewelry, artwork, and collectibles, because their value exceeds the personal property coverage cap. If you have a lot of valuable items, look into jewelry, scheduled personal property, or valuable personal property endorsements.
  • Claims history of home—Insurance companies look at the claims history of the home as a whole, which includes claims made by past owners. If they see your home has had a lot of claims in the past, you may have to pay more for coverage.

Independent insurance agencies—If you’re struggling to find an insurance provider, look into an independent insurance agency. These agencies typically sell a variety of insurance products and services from several insurance companies. Because of their intimate knowledge of the insurance industry, they will be able to find a provider that fits your coverage and budget needs.

Compare Homeowners Insurance Coverage Options

Provider Travelers Farmers Lemonade
Provider Travelers Farmers Lemonade
Other structures coverage limits 1%, 5%, 10%, 25%, 50%, 75%, or 100% of dwelling 5%–200% of dwelling N/A
Personal property coverage limits 20%, 30%, 50%, 75%, or 100% of dwelling 40%–200% of dwelling 40%–79% of dwelling
Liability coverage limits $100,000, $300,000, $500,000, or $1 million $100,000, $300,000, $500,000, $1 million, or $2 million $100,000, $200,000, $300,000, $400,000, or $500,000
Monthly price* $72 $291 $61
Discounts available 5 3 1
Unique add-ons Equipment breakdown, roofing, siding matching package Building ordinance or law, marring to metal roof materials Significant other, swimming pool liability
Customer service 24/7 for claims; limited for sales and service 24/7 for claims; limited for sales and service Online
BBB rating A+ A+ B+

*Based on sample quotes our team received

Our Conclusion

For customizable homeowners insurance policies in New Jersey, look into Travelers, Farmers, and Lemonade. Call 855-948-5219 or use our tool below to get quotes from all three providers and compare policy costs from each company:

FAQs About Homeowners Insurance in New Jersey

How does my local fire department affect my homeowners insurance policy?

The proximity of your home to a fire station will affect your insurance premiums. If your home is farther than five miles from a station, it will take longer for firefighters to get there to put out a fire, which increases the amount of damage that will be done and how much your insurance company will have to pay.

What are the different types of deductibles?

There are three types of deductibles: flat, percent, and split.

  1. Flat—This type of deductible is a set number that you pay for every type of peril. An example of this would be a Lemonade policy where you select $250, $500, $1,000, $2,500, or $5,000 each time you file a claim.
  2. Percent—With this deductible, you pay a set percentage of dwelling coverage every time you file a claim. For example, you can decide between $1,500, $2,500, 1% of dwelling, 2% of dwelling, 3% of dwelling, or 5% of dwelling when you want to make wind and hail claims.
  3. Split—This deductible is split up by peril. Farmers home insurance has deductibles for wind and hail, hurricanes, and all other types of perils.

Does personal property coverage only protect belongings in my home?

Personal property coverage protects your belongings inside and outside of your home. For example, if someone breaks into your car and steals your items, you would file a claim with your home insurance company to have those items replaced.

To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.

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