The Best Home Insurance Companies in New Jersey in 2026
NJM Insurance and State Farm are among the best home insurance companies in the Garden State.
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Written byKat Tretina
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Kat TretinaInsurance Writer
Kat Tretina is a personal finance writer for Compare.com, specializing in insurance and debt management. For the past seven years, she’s been writing for several notable personal finance publications, including U.S News & World Report, NerdWallet, Forbes, Yahoo! Finance, Fortune, and more. She’s passionate about using her expertise to help people understand their financial options.
Kat earned her bachelor’s degree in English and Communications from Elizabethtown College and her master’s from West Chester University. She also holds certifications in financial education and student loan counseling.
Kat has been writing for Compare.com since 2025.
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Edited byNick Versaw
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Nick VersawSenior Managing Editor
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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Reviewed byJohn Leach
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John LeachLicensed P&C Insurance Agent and Expert Reviewer
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John Leach is a licensed insurance agent who reviews and fact-checks articles for Compare.com. John has several years of experience reviewing and editing various insurance topics, and he also holds a valid personal lines producer license from the California Department of Insurance (NPN #20461358).
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In This Article
Garden State residents pay an average of $1,164 per year for a policy with $300,000 in dwelling coverage, according to Compare.com data. That’s lower than the national annual average of $2,580 per year.
Your rates and the coverage types you need depend on where you live within the state. But we found that Travelers typically offers the lowest rates, at an average of $70 per month.
Keep reading to learn about your coverage options in New Jersey and what insurance companies offer the lowest home insurance rates.
Key Takeaways
NJM, Foremost, and Travelers round out our picks for the best home insurance companies in New Jersey.
New Jersey homeowners may need to purchase separate flood insurance policies to protect against storm surges or rising water.
New Jersey residents who are unable to purchase coverage through a standard insurance company can get home insurance through the New Jersey Underwriting Association (sometimes known as the FAIR Plan).[1]
Our Picks for New Jersey’s Best Home Insurance Companies
If you’re a New Jersey resident, you have several home insurers to choose from. The best home insurance companies offer competitive rates, customizable policies, and responsive customer service.
Although no one company will be suitable for every homeowner, the following companies may be a good fit.
Company  | Compare.com Rating | Average Monthly Premium |
|---|---|---|
| Travelers | 4.0/5 | $70 |
| Encompass | 3.8/5 | $103 |
| State Farm | 4.4/5 | $131 |
| Foremost | 3.6/5 | No data available |
| NJM | N/A | No data available |
Best for low rates
Travelers
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| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 3.9/5 |
|---|---|
| AM Best AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor). | A++ |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $70/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $112/mo |
If your priority is cost, Travelers is one of the cheapest insurers in New Jersey. It also offers several discounts to save money, such as discounts for installing energy-efficient features or security systems. You can qualify for multi-policy discounts by bundling your home insurance with other types of coverage, such as car insurance.
Pros
Low rates in New Jersey
Discounts for energy-efficient upgrades
Cons
Below-average J.D. Power customer satisfaction rating
Doesn’t offer a wind mitigation discount
Best for vacation homes
Encompass Insurance
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| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | NR |
|---|---|
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $103/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $156/mo |
From Cape May to Wildwood, New Jersey is known for its vacation towns. If you own a second home, Encompass offers convenient coverage options. Encompass allows you to purchase coverage for multiple properties under one policy, and you can customize your policy with multiple add-ons.
Pros
Coverage for vacation homes available
Ability to customize coverage
Cons
No online quotes
Higher-than-usual number of complaints with the National Association of Insurance Commissioners
Best for customer service
State Farm
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| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.1/5 |
|---|---|
| AM Best AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor). | A++ |
| $300,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $300,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $131/mo |
| $500,000 Dwelling A standard HO-3 home insurance policy typically includes dwelling, personal property, and liability coverage. The average rate displayed here reflects a policy with the following coverage limits: $500,000 dwelling; $25,000 personal property; $300,000 personal liability; $30,000 loss of use; and a $1,000 deductible for medical payments to others. | $193/mo |
State Farm stands out for its coverage options and customer service. It was highly ranked in the2025 J.D. Power U.S. Home Insurance Study, and it has a large network of insurance agents in New Jersey that can provide personalized advice and service. You can get a quote online, and you can customize your policy with additional coverages, such as landscaping protection.
Pros
Extensive network of agents in New Jersey
Offers online quotes
Cons
Fewer discounts than some competitors
Doesn’t sell flood insurance
Foremost: Best for coastal homes
Pros
Sells flood insurance
Competitive rates in New Jersey
Cons
Can’t get a home insurance quote online
Poor customer reviews on Trustpilot
New Jersey experienced significant damage from Hurricane Ida and Hurricane Sandy, and a basic home insurance policy doesn’t cover flood damage. Not all insurers offer flood insurance, but Foremost does, so you can get a separate policy to protect your home. Its rates are competitive, and you may be eligible for home insurance discounts based on security or fire detection devices, the age of your home, or going without filing a claim.
Best for older homes
NJM Insurance
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| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | NR |
|---|---|
| J.D. Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | Not rated |
| AM Best AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor). | A+ |
Properties in New Jersey tend to be older than the national average. Approximately 23% of homes in the Garden State were built before 1950, according to New Jersey State Health Assessment data.
Not all insurers will issue policies for older homes, but customers said they were able to get coverage for homes that were 100 years old (or older) through NJM Insurance. Plus, NJM has positive customer reviews.
Pros
Coverage for older New Jersey properties available
Stellar customer reviews on Trustpilot
Cons
No mobile app
Limited availability
The Cheapest Home Insurance Companies in New Jersey
As in other states, New Jersey home insurance rates vary by insurance company. Shopping around and getting quotes can help you find more affordable coverage.
The table below shows the cheapest home insurance companies in New Jersey:
The below rates in New Jersey are estimated rates current as of: Monday, March 9 at 12:00 PM PDT.
Company | Average Yearly Premium |
|---|---|
| Travelers | $840 |
| Encompass | $1,236 |
| Chubb | $1,272 |
| USAA | $1,284 |
| Foremost | $1,404 |
| Allstate | $1,488 |
| State Farm | $1,572 |
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Average Cost of Homeowners Insurance in New Jersey
In New Jersey, the average cost of home insurance is $1,164 per year for a policy with $300,000 in dwelling coverage and a $1,000 deductible, according to Compare.com data.
How much you pay for coverage depends on several factors, including what coverage limits you select, your deductible amount, and whether you add optional endorsements to your policy. Your property value is another major factor, with more expensive homes costing more to insure.
The tables below shows the average annual premiums based on different dwelling coverage amounts, according to Compare.com data.
The below rates in New Jersey are estimated rates current as of: Monday, March 9 at 12:00 PM PDT.
Company | Average Yearly Premium |
|---|---|
| Travelers | $576 |
| Foremost | $828 |
| Chubb | $840 |
| Encompass | $864 |
| USAA | $1,020 |
| Allstate | $1,032 |
| State Farm | $1,188 |
The below rates in New Jersey are estimated rates current as of: Monday, March 9 at 12:00 PM PDT.
Company | Average Yearly Premium |
|---|---|
| Travelers | $840 |
| Encompass | $1,236 |
| Chubb | $1,272 |
| USAA | $1,284 |
| Foremost | $1,404 |
| Allstate | $1,488 |
| State Farm | $1,572 |
The below rates in New Jersey are estimated rates current as of: Monday, March 9 at 12:00 PM PDT.
Company | Average Yearly Premium |
|---|---|
| Travelers | $1,104 |
| USAA | $1,536 |
| Encompass | $1,596 |
| Chubb | $1,692 |
| Allstate | $1,932 |
| State Farm | $1,932 |
| Foremost | $1,968 |
The below rates in New Jersey are estimated rates current as of: Monday, March 9 at 12:00 PM PDT.
Company | Average Yearly Premium |
|---|---|
| Travelers | $1,344 |
| USAA | $1,764 |
| Encompass | $1,872 |
| Chubb | $2,028 |
| Foremost | $2,208 |
| State Farm | $2,316 |
| Allstate | $2,400 |
The below rates in New Jersey are estimated rates current as of: Monday, March 9 at 12:00 PM PDT.
Company | Average Yearly Premium |
|---|---|
| Travelers | $1,980 |
| USAA | $2,328 |
| Encompass | $2,652 |
| Foremost | $2,928 |
| Chubb | $3,096 |
| State Farm | $3,192 |
| Allstate | $3,480 |
The cost of home insurance in New Jersey can vary by city due to crime rates, weather risks, and property values. In general, policies are more expensive in cities near the coastline, such as the Jersey Shore.
The table below shows the average annual premiums for a couple different cities within the Garden State.
CityAverage Yearly PremiumAtlantic City $1,464 Trenton $1,044
Common Home Insurance Risks in New Jersey
If you’re a homeowner in New Jersey, these are some common risks to be aware of that can affect what type of policy and coverage you choose to protect your home.
Floods
Hurricanes and severe storms can cause significant flooding and water damage. New Jersey is prone to flooding, especially in coastal areas. Standard home insurance policies don’t cover flood damage. But you can purchase a separate policy from the National Flood Insurance Program (NFIP) or through a private insurer.
Aging homes
New Jersey has a high percentage of homes that were built prior to 1980.[2] Older homes are more at risk of damages due to outdated construction or plumbing. You may pay more to insure an older home, but some insurance companies specialize in this type of coverage.
Winter weather
New Jersey can experience heavy snow and ice storms, increasing the risk of property damage or personal liability claims. Standard home insurance policies typically cover damage caused by snow and ice.
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What Homeowners Insurance Covers in New Jersey
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In New Jersey, home insurance policies include the following types of coverage:
Dwelling coverage: Dwelling insurance pays to repair or replace your property’s structure after a covered peril.
Personal property coverage: Personal property coverage protects your personal belongings, such as your furniture or clothing, if a covered peril damages or destroys them.
Liability coverage: If a guest or contractor is hurt visiting your property, liability insurance can help with their medical expenses and any associated legal fees.
Additional living expense coverage: If your home is uninhabitable after a covered loss — for example, if your home has significant smoke damage after a fire — additional loss of use coverage pays for temporary housing or meals.
What home insurance doesn’t cover
In New Jersey, your homeowners insurance policy can provide solid protection. But standard policies don’t cover everything. These are some common exclusions:
Floods: Standard policies don’t provide coverage for flood damage.
Sewer backup: Damage related to backed-up pipes or sewer systems isn’t covered unless you added sewer or water backup coverage as an endorsement to your policy.
Maintenance and wear and tear: Home insurance policies don’t cover routine maintenance or damages related to wear and tear.
Jewelry or collectibles: A standard policy only covers between $1,000 and $2,000 of jewelry, artwork, or collectibles. If your collection exceeds that amount, you’ll need to purchase a separate policy or add an endorsement to your coverage.
Do You Need Flood Insurance in New Jersey?
New Jersey property owners may be at a higher risk of flood damage. Approximately 53% of the state ’s population resides in the coastal zone along shores or rivers, according to the New Jersey Climate Change Resource Center.[3]
Standard home insurance policies exclude damages related to floods or storm surges. If you live in a flood zone, you may need a separate flood insurance policy. Coverage is available through some private insurers or the NFIP.
Factors That Affect Home Insurance Costs in New Jersey
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Besides your home’s property value, other factors can affect your home insurance rates:
Homeowner credit: In New Jersey, insurance companies can use your credit-based insurance score as part of their underwriting processes.[4] People with poor credit generally pay higher insurance rates than people with good credit.
ZIP code: Your location affects your rates. Areas with more risk, such as those along the coastline or in areas with higher crime rates, will have higher insurance premiums.
Claims history: If you’ve submitted previous home insurance claims, you’ll typically pay more for coverage.
Home age: In general, older homes are more expensive to insure than newer ones.
New Jersey Department of Banking and Insurance
The State of New Jersey Department of Banking and Insurance regulates the state’s banking, insurance, and real estate industries. You can reach out to the department if you have questions about available insurance companies or to file complaints about an insurer.
You can contact the department in the following ways:
Submit an online complaint
Phone: (609) 292-7272 (M–F, 8:30 a.m. to 5:30 p.m. ET)
New Jersey Home Insurance FAQs
For more information about buying home insurance in New Jersey, see the following answers to commonly asked questions.
How much is home insurance in New Jersey?
On average, policyholders pay $1,164 per year for a $300,000 dwelling coverage policy in New Jersey, according to Compare.com data.
What’s the best home insurance company in New Jersey?
The best company depends on your property, coverage needs, and budget. But companies like Foremost, NJM, and Travelers are some of the best home insurance companies in New Jersey.
Which company has the cheapest homeowners insurance in New Jersey?
Travelers has the cheapest rates for home insurance in New Jersey, at an average of $70 per month.
Is home insurance required in New Jersey?
No. New Jersey doesn’t require residents to maintain homeowners insurance. But your mortgage lender may require you to have coverage for the duration of your loan.
What does New Jersey home insurance cover?
A standard homeowners insurance policy in New Jersey covers the structure of your home, your personal belongings, personal liability, and additional living expenses.
What are some optional home insurance coverages in New Jersey?
In New Jersey, some common optional home insurance coverages include flood insurance, water or sewer backup insurance, and extended replacement cost coverage.
Methodology
Compare.com data scientists analyzed rates from more than 180 home insurance companies sourced directly from Compare.com’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
- Dwelling coverage: $300,000
- Deductible: $1,000
- Personal property limit: $25,000
- Liability limit: $300,000
Additional data points beyond these default values are sourced from Compare.com’s proprietary database. Rates are updated monthly.
Sources
- New Jersey Department of Banking & Insurance. "AIR Plan - NJ Insurance Underwriting Association."
- State of New Jersey. "Housing Age."
- New Jersey Climate Change Resource Center. "The National Flood Insurance Program and New Jersey."
- State of New Jersey. "Insurance Scoring."
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Kat TretinaInsurance Writer
Kat Tretina is a personal finance writer for Compare.com, specializing in insurance and debt management. For the past seven years, she’s been writing for several notable personal finance publications, including U.S News & World Report, NerdWallet, Forbes, Yahoo! Finance, Fortune, and more. She’s passionate about using her expertise to help people understand their financial options.
Kat earned her bachelor’s degree in English and Communications from Elizabethtown College and her master’s from West Chester University. She also holds certifications in financial education and student loan counseling.
Kat has been writing for Compare.com since 2025.
Nick VersawSenior Managing Editor
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
John LeachLicensed P&C Insurance Agent and Expert Reviewer
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
John Leach is a licensed insurance agent who reviews and fact-checks articles for Compare.com. John has several years of experience reviewing and editing various insurance topics, and he also holds a valid personal lines producer license from the California Department of Insurance (NPN #20461358).