Best Homeowners Insurance in New Jersey: Top 5 Insurance Companies to Protect Your Investment

The Garden State is known for its bustling atmosphere, great schools, excellent entertainment, and even better pizza. Living here is sometimes an acquired taste, but once you fall in love with the place, you are hooked.

As a property investor in New Jersey, there are certain risks you may face. Having high-quality homeowners insurance is the best way to protect yourself and your finances if challenges arise.

Here are five of the best providers of homeowners insurance in New Jersey- complete with all the best features and discounts to get the best coverage and the lowest cost.

Homeowners Insurance Summed Up

Every property investor (homeowners, landlords, and property managers) needs homeowners insurance to protect them from the unexpected. In most cases, a mortgage lender will require you to have a policy anyway, but that is not the only reason to invest in excellent coverage.

Homes get damaged, things get stolen, and the unexpected can happen at any time. Without homeowners insurance, there is no line of defense between your finances and potential unmanageable expenses.

Average Cost of New Jersey Homeowners Insurance

Homeowners insurance in New Jersey costs less than the national average overall, but it depends on your situation.

Some of the factors that impact how much your insurance policy may cost include:

• The total value of your home and the items inside it
• Where in New Jersey your property is located
• What coverage you need, and how high the limits are
• Whether or not you can take advantage of any discounts
• The age and condition of your property
• What type of policy you take out

Homeowners Insurance vs. Landlord Insurance

If you are a property investor in New Jersey but rent to others, homeowners insurance may not be enough. A homeowners insurance policy covers the structure of a building in case of damage and generally extends to the items that belong to you. It does not always cover liability for renters or tenants, and there are not usually inclusions for rental payment insurance.

Property owners who have tenants most likely need to take out a landlord insurance policy. It protects them against lost rent and extended liability coverage for others living in the home. Some policies also cover the property itself, but you may need a homeowners insurance policy as well to secure enough coverage.

Tips for Choosing the Best Homeowners Insurance Company

What Specific Requirements Are There in New Jersey?

Are there any specifics for homeowners insurance required in New Jersey? It is far from being one of the riskiest parts of the country as far as property investments go, but there are a couple of things to look out for.

Flood Insurance

Some parts of New Jersey are at risk of flash flooding and severe weather that can cause damage to property structures and the things inside them. Most insurers do not have their own flood insurance policy, but many work with the National Flood Insurance Program to help clients get the protection they need.

Check what storm and flood events you are covered for, and speak to an insurance agent about how to get the protection you need.

Theft Coverage

New Jersey is in the top half of the country for crime rates, and some areas are more at risk of break-ins and theft than others. Protecting your personal property value in case it is stolen is essential when picking a homeowners policy.

Look for an insurance company that offers full replacement cost coverage with brand new items rather than replacement to the estimated depreciated value.

Other Considerations when Assessing Homeowners Insurance Companies

Here are a few questions to ask yourself and any potential home insurance companies you consider.

• Is the company reputable and financially secure?
• Does the policy offer high enough limits to cover your personal belongings?
• Do the home insurance costs seem like good value for money compared to what the policy includes?
• How does the policy compare to other insurers charging the same amount of money?
• What do other clients say about the company online?
• Is the claims process simple and convenient?
• Are the things that are most important to you offered, and are they included in the standard plan?
• What discounts are available that apply to you?

The Five Best New Jersey Homeowners Insurance Companies

Now, let's get into the comparison of five of the best homeowners insurance companies in New Jersey.

1: NJM

NJM easily secures the number one spot for New Jersey home insurance companies. It is one of the most generous policy providers in the country- offering far more in its standard plans than you would normally expect to receive in most homeowners insurance policies.

Unfortunately for most of the country, NJM only operates in five states. Luckily for New Jersey residents, the Garden State is one of them.

Coverage and Features

As already mentioned, NJM includes several insurances in its standard policy that you usually need to pay extra for.

On top of the expected coverage, New Jersey property owners who choose NJM also receive guaranteed replacement cost coverage to the full cost of repairs, brand-new replacements or value coverage for stolen property, extensive water backup coverage, and ordinance and law insurance.

Furthermore, it also offers the following optional extras.

• Extended coverage for jewelry, heirlooms, and other valuable items
• Identity theft insurance up to $15,000
• Fungi and mold damage coverage
• Storage items insurance
• Supplemental loss assessment
• Assisted living liability coverage
• Earthquake coverage

Discounts

• Lower rates apply to all property owners aged 65 or over.
• You pay less if there are no smokers in your home.
• Discounts apply to homes with impact-resistant glass in their doors and windows.
• New roofs also reduce premiums.
• Save money through bundling discounts with auto insurance or pet insurance.
• Go paperless and sign up for autopayment to earn a discount.
• You may receive lower rates if you have a backup generator, smoke alarms, anti-theft devices, or automatic sprinklers.

2: Allstate

The runner-up on our list of the best New Jersey home insurance providers is Allstate. As one of the USA's leading insurance companies, Allstate is reliable and robust in the coverage it offers. It often costs more than other providers but is worth it for the extensive policy inclusions and generous extras.

Coverage and Features

Allstate is an excellent choice for New Jersey homeowners who don't mind spending more on their insurance in return for enhanced coverage to better protect their investments. It offers a few extras you don't find in most places- plus all the essentials you need for your peace of mind.

Here are some options you can include in your Allstate home insurance policy for New Jersey.

• Coverage for damage to landscaping in your yard and garden
• Fallen tree removal
• Broken items are replaced with brand-new equivalents at full value
• Option of cash payments for the depreciated value of damaged items rather than replacing them
• Short-term rental insurance through Allstate HostAdvantage (maximum 62 days per year)
• Electronic data recovery insurance
• Extended replacement cost coverage over policy limit for construction costs
• Pipes, sewer, and electricity line insurance
• Ordinance or law insurance
• Incidental business coverage
• Water backup and pump failure
• Reimbursed extra costs when you repair damage using alternative eco-friendly building materials

Discounts

• Bundling discounts of up to 25% are available when you combine your home and car insurance through Allstate.
• Paying in full or through autopay enrolment can earn you cheaper rates.
• Having a history of paying bills on time may also mean lower costs on your insurance premiums.
• Renewing your insurance policy before it expires often earns you discount rewards for the following year's premium.
• New buyers and owners of new builds often receive lower quotes.
• Some home safety features, including fire protection, smoke detectors, anti-theft devices, and home security systems, could reduce your Allstate insurance costs.
• Joining Allstate without a clean recent claims history from your previous insurance provider may also earn you up to 20% off your rate.
• $100 is taken off your deductible each year (maximum $500) if you haven't made any claims.

3: State Farm

In third place is State Farm- one of America's leading insurance companies with an A++ AM Best Rating for financial strength and stability. As far as trustworthy reputation and reliability go, State Farm is hard to beat, and the excellent coverage options only make it better.

The reason State Farm earns a spot on our list for homeowners insurance in New Jersey is the comprehensive nature of its standard homeowners insurance policies. If flash flooding is a concern in your area of the state, this home insurance company is worth your consideration.

Coverage and Features

State Farm is widely considered one of the best homeowners insurance companies across the country because of its extensive protection options and generous coverage. It ticks all the boxes for New Jersey residents who want to look after their investments and be prepared for every scenario.

Here are some State Farm policy features that can help put a safety net around your New Jersey property.

• Sewer, pipe, and drain coverage (including damage caused by water backup)
• Flood insurance provided through a partnership with the National Flood Insurance Program
• Replacements and upgrades coverage for HVAC and water heating systems
• Generous water damage insurance with comprehensive covered events
• Incidental business insurance as part of the package
• Dwelling insurance with replacement cost cover to 20% above your coverage limits
• Excellent personal liability coverage (including in-home carers)
• Temporary living expense coverage and assistance finding accommodation
• Medical payments coverage

Discounts

• Get discounted rates through multi-policy bundles combining home and auto insurance through State Farm.
• Discounted insurance costs usually apply to properties with safety features, including monitoring systems, smoke and fire detectors, and burglar alarms.
• You can earn reductions on your insurance costs by going several years making no claims.
• Upgrading the utilities in your property could make you eligible for lower policy rates.
• Renovating your home with impact-resistant roof materials can also bring down your insurance costs.

4: Liberty Mutual

One of the largest home insurance companies in the US is our next choice for New Jersey. Liberty Mutual is a nationwide company known for its robust insurance coverage and generous discounts. We included it on our list for New Jersey homeowners insurance cover because of the excellent cost replacement coverage for stolen items and home repairs.

Coverage and Features

Liberty Mutual covers all the usual essentials in a standard plan, plus plenty of extras for enhanced coverage.

These are the best inclusions and extras for New Jersey homeowners insurance policies.

• Water backup and overflow coverage
• Extended replacement cost coverage for rising construction rates
• Brand-new item replacement for stolen property rather than depreciated cash value
• Law and ordinance coverage for meeting building codes after repairs
• Inflation protection on all premiums
• Deductible-free blanket insurance for stolen jewelry
• Identity theft insurance

Discounts

• If you get a quote from Liberty Mutual before your previous policy expires, you could receive improved rates.
• Bundling your homeowners insurance with car insurance saves you money overall.
• Properties with new roofs are usually insured for less.
• Signing up for paperless communications earns you a discount.
• The online rates tend to be cheaper than going through an agent.
• Having smart devices designed to prevent water damage, fire, and theft in your home may reduce your Liberty Mutual premiums.
• Your rates decrease if you go three years without making a claim. Prices are also lower for people with a five-year no-claims history with their previous insurer.
• If you are a new buyer or your property is newly built or renovated, you may qualify for lower rates.

5: Amica

Our fifth and final pick for New Jersey home insurance is Amica. This reputable nationwide insurance company offers robust plans that cover all the essentials to protect your property investments. It works with the National Flood Insurance Program to help customers cover themselves in case of extreme weather- and shares excellent support and advice about preparing for storms.

Coverage and Features

Amica's best plan is the Platinum Choice Policy. It provides excellent coverage limits for valuables and significant home damage. You can customize your plan with plenty of extras to further protect your property investment in New Jersey.

Here are some possible features to include in your Amica homeowners insurance policy.

• Flood protection support through partnership with the National Flood Insurance Program
• Storm Center access for preparation advice and support
• Home business liability coverage for remote workers and self-employed individuals
• Tailored protection plans for laptops, computers, tablets, and other devices
• An extra 30% on top of your dwelling coverage policy limit if rebuild costs exceed expectations
• Damaged or stolen property replaced with brand-new items at full value
• Identity fraud expense coverage
• Drain, pump, and water backup insurance

Discounts

New Hampshire homeowners may be eligible for the following discounts and deals at Amica to help them save money on their premiums.

• Agreeing to go paperless and get all your documents via email can earn your discount rewards.
• Some homeowners may qualify for lower insurance rates if they install safety and security features such as anti-theft devices and smoke alarms in their properties.
• New builds and newly remodeled properties are generally insured for less through Amica.
• Three years without making a claim earns you a no-claim bonus and lower rates.
• There are loyalty discounts available after two years with the company.
• If you enroll for autopayments or pay your premium in full, you could save money.
• There are several bundling discounts with Amica when you combine your homeowners insurance with other plans.

Some Other New Jersey Homeowners Insurance Companies to Consider

• USAA
• Travelers
• Nationwide
• Farmers Insurance

Conclusion

Protecting your property investments in New Jersey is easier when you take out a robust homeowners insurance policy through one of their providers. Finding the best insurance in New Jersey is easier when you assess your risks and requirements and then choose a policy that ticks all the boxes.

You can find some cheap home insurance policies in this state, but it is best to compare home insurance quotes and inclusions and choose value for money over the lowest cost.