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Your home is probably the biggest investment you'll ever make, and the best homeowners insurance policies can help protect it. These policies ensure you remain financially sound if your house catches fire or has damage due to wind or hail, or if someone vandalizes your property or steals your belongings. Homeowners insurance coverage can also kick in to pay for legal bills and medical expenses that occur when someone is injured at your home and wants to hold you financially responsible.
Not all homeowners insurance companies are equal, however, and some have considerably better ratings and policy options than others. Read on to find out which homeowners insurance coverage we recommend in New Jersey and beyond based on average rates, third-party ratings, policy benefits, available discounts and more.
| Best for | Avg. annual cost for $345,000 home | AM Best rating | JD Power rating | |
|---|---|---|---|---|
Online coverage | $3,183 per year | Not rated | Not rated | |
Discounts | $1,853 per year | A+ (Superior) | Not rated | |
Affordability | $1,375 per year | A++ (Superior) | 829 (5th place) | |
Mobile or manufactured homes | $1,837 per year | A+ (Superior) | 791 (18th place) | |
Customer service | $2,268 per year | A+ (Superior) | 844 (2nd place) | |
High-value homes | N/A | A++ (Superior) | 801 (15th place) | |
Efficiency upgrades | N/A | A- (Superior) | 809 (11th place) |
*Quotes built using a single-family home in Newark, New Jersey
Best homeowners insurance of 2024:
- Best for online coverage: Lemonade.
- Best for discounts: New Jersey Manufacturers (NJM).
- Best for affordability: State Farm.
- Best for mobile or manufactured homes: Progressive.
- Best for customer service: Amica.
Best for online coverage: Lemonade
Lemonade Homeowners Insurance
Lemonade Homeowners Insurance
While Lemonade hasn't been rated by some third party agencies, this online insurance company is known for offering exceptional rates and zero hassle. Lemonade makes it easy to get an online quote for homeowners, renters, auto, pet insurance and life insurance through its website or mobile app, and premiums for homes can be paid directly to the company or through a mortgage escrow account.
Typical coverages are included in their homeowners policies, including liability protection, coverage for the home's structure and other structures on a property, protection for personal belongings and loss of use. Homeowners can also customize their deductibles and coverage to ensure they're buying the exact amount of insurance they need.
Note that Lemonade homeowners insurance is only available in 23 states and Washington D.C. The company also offers renters insurance in 28 states plus Washington D.C. While not officially rated by AM Best or J.D. Power, Lemonade does have an average star rating of 4.3 out of 5 stars across more than 1,500 reviews on Trustpilot.
Best for discounts: New Jersey Manufacturers (NJM)
NJM Homeowners Insurance
NJM Homeowners Insurance
New Jersey Manufacturers (NJM) offers homeowners insurance coverage in Connecticut, Maryland, New Jersey, Ohio and Pennsylvania with a focus on affordable plans that prioritize customers over shareholders. Typical coverages are included in NJM homeowners insurance policies, and plans can be customized with add-on coverage for identity fraud, expensive personal possessions, earthquakes, water backup and sump pump discharge, assisted living care coverage and more.
An array of discounts are also available through NJM, including price reductions for bundling several types of coverage, being a senior citizen, paying premiums in full, being a non-smoker, paying electronically, going paperless and more. NJM also makes it easy to get a free quote for homeowners insurance online and to customize the policy details with a few clicks of a button.
NJM has received an A+ (Superior) rating from AM Best for its financial strength. Despite not being rated in J.D. Power's 2023 U.S. Home Insurance Study, the company boasts an average rating of 4.7 out of 5 stars across more than 12,000 user reviews on Trustpilot.
Best for affordability: State Farm
State Farm Homeowners Insurance
State Farm Homeowners Insurance
State Farm is another highly-rated homeowners insurance company to consider if you want affordable premiums and the chance to customize your coverage to suit your needs. Plans from this provider can include benefits like robust liability coverage, protection for pets, elevated protection for your keepsakes and valuables and more.
State Farm is known for its range of discounts that can apply, including price drops for bundling homeowners insurance with an auto policy and/or personal umbrella coverage. Other popular discounts from State Farm can apply for newer roofing, having a home security system or increasing your deductible.
State Farm earned the 5th spot in J.D. Power's 2023 U.S. Home Insurance Study for overall customer satisfaction with 829 out of 1,000 possible points. The company also has a strong financial strength rating of A++ (Superior) from AM Best, which bodes well for its ability to pay out claims.
Best for mobile or manufactured homes: Progressive
Progressive Homeowners Insurance
Progressive Homeowners Insurance
While Progressive is known for its auto insurance policies first and foremost, this insurance company also offers highly customizable coverage for single-family homes, condominiums and other types of property. Standard coverages are included for your dwelling, loss of use, liability, personal property and medical payments, and additional coverage can be added for water back-up and sump discharge or overflow or personal injury. Progressive also offers custom homeowners insurance policies for mobile and manufactured housing, which can be purchased after speaking with an insurance rep about the property and determining the type of coverage it requires.
Various discounts from Progressive help make their policies more affordable, including discounts for bundling several types of coverage, adding safety alarms, paying in full, going paperless, having a single deductible for auto and home coverage and more.
Progressive has a financial strength rating of A+ (Superior) from AM Best, and the company earned the 18th spot in J.D. Power's 2023 U.S. Home Insurance Study for its customer satisfaction with 791 out of 1,000 points.
Best for customer service: Amica
Amica Homeowners Insurance
Amica Homeowners Insurance
Amica offers two types of homeowners insurance that can work for your needs: A Standard Choice HO3 policy with essential protections and a Platinum Choice HO5 policy with replacement cost coverage up to 130%, additional coverage for damage to your personal property, replacement cost coverage on your personal property and other enhanced benefits. The company also offers extended coverage options for your dwelling (also known as Coverage A) if a loss exceeds 100% of your replacement cost, along with an array of exclusive discounts that can make coverage more affordable.
This company's homeowners insurance policies also give you back up to 20% of your annual premium if you choose a dividend policy and you meet certain conditions. Most importantly, Amica consistently receives accolades for its customer service and claims process. For example, the company earned the number 2 spot in J.D. Power's 2023 U.S. Home Insurance Study for its customer satisfaction with 844 out of 1,000 points. The company also boasts an A+ (Superior) rating from AM Best for its financial strength.
Best for high value homes: Chubb
Chubb Homeowners Insurance
Chubb Homeowners Insurance
Not only does Chubb have an excellent reputation and superior financial strength, it also has extensive services for policyholders, including complimentary home appraisals and a risk consultant who will come to your house to help you troubleshoot possible issues, temporary lodging if your home isn't livable while it's being repaired, and Homescan, a service that can reveal leaks, missing insulation and faulty electrical wiring before damage happens.
This white-glove treatment doesn't come cheap, however. Chubb specializes in primary residences for high-net-worth individuals and their second homes. The rapid rise in homeowners insurance policy rates in this decade has increased premiums across the board, and insurers like Chubb who cater to higher-end homeowners have raised their rates accordingly. Chubb also doesn't write insurance policies online — you have to go to an in-person broker.
Best for efficiency upgrades: Allstate
Allstate Homeowners Insurance
Allstate Homeowners Insurance
Allstate has been insuring homes and automobiles since 1931, and its national presence means you can get a homeowners insurance policy almost anywhere. Unfortunately, Allstate is one of the companies, along with State Farm, that are no longer writing new homeowners insurance policies for residents of California.
Allstate stands out for its discounts for upgrading your home to make it safer and more efficient. In addition to its featured multi-policy (bundling), responsible payment and claim-free discounts, Allstate also offers discounts through its Easy Pay Plan® that sets up automatic payments, and when you install theft or fire protection devices in your home. For residents of Florida, Allstate offers discounts for homes that have documented wind-damage mitigation features.
How to choose the right homeowners insurance policy
The right homeowners insurance policy for you can depend on how much protection you want, the additional coverages you need based on the specifics of your property, the discounts you may be eligible for and more. These tips can help you understand what to look for in a policy.
Know the types of coverage you can buy
First, you should know about the different types of homeowners insurance available for purchase and how they work. For example, you can buy HO-1 (Basic Form) homeowners coverage, HO-2 (Broad Form) coverage with additional protections, HO-3 (Special Form) (the most common type) or the broadest level of homeowners insurance with a HO-5 (Comprehensive Form) policy.
If you need to insure a condominium instead of a single-family home, you would look for a HO-6 (Condo Insurance) policy instead.
Consider replacement cost vs. actual cash value
Consider whether the insurance policies you're considering offer replacement cost coverage or actual cash value coverage. Where replacement cost coverage will repair or replace your home and personal property without taking depreciation into account, actual cash value bases its coverage on what the home or items would cost to replace based on their depreciated values.
Look at customer service and claims
Compare ratings for customer service and claims found through third parties like J.D. Power. You can also read user reviews and explore company ratings on websites like Trustpilot.
Decide which additional coverages you need
Make sure insurance companies you're considering let you customize insurance coverage based on the protections you need the most. For example, look for add-on coverage for floods, earthquakes, sump pump backup and identity theft.
How to lower your homeowners insurance rate
How much you'll need to pay for homeowners insurance varies widely based on the state you live in, the home you need to insure, the policy limits you elect, your deductible and more. These tips can help you pay less overall.
- Shop around for homeowner's insurance: Compare plans from at least three or four insurance companies so you can assess coverage options and premiums with each one. The best homeowners insurance companies make this part easy by letting you get a free quote online.
- Work with an insurance broker: While you can shop around for insurance coverage on your own, an insurance broker can also do the bulk of the work for you. These professionals can learn about the coverage you need and help you compare pricing across several different providers all at once.
- Bundle home, auto and umbrella coverage: Consider purchasing all your insurance products from a single company in order to score a discount for bundling. For example, you can bundle homeowners insurance or renters insurance with an auto insurance policy or a personal umbrella policy.
- Explore available discounts: Look for discounts you can qualify for based on paying in full, going paperless, being a senior citizen or having specific security features in your home.
- Raise your deductible: Consider boosting the deductible on your homeowners insurance policy in order to secure lower monthly or annual premiums. Start by raising a $1,000 deductible to $2,500 or $5,000 to see how it impacts the cost of your policy, then decide if the savings are worth it.
How to file a homeowners insurance claim
The exact steps required to file a homeowners insurance claim depend on your insurance company and their specific process. However, these steps provide a general overview of what you'll need to do to move a claim through from start to finish.
- Step 1: Make a list of your damaged property. The National Association of Insurance Commissioners (NAIC) recommends creating a list of all your damaged property and what it's worth. If you have an inventory of your belongings, receipts or both, gathering this information can help you get started.
- Step 2: Take photos and videos of the damage. Capture images of your damaged property as soon as you can, and make sure to save the photos and videos where they can be easily accessed.
- Step 3: Begin the claims process online or through a mobile app. Begin filing a claim with your company by providing information on the date the damage occurred, the depth of the damages and what happened.
- Step 4: Speak with your agent or a representative. Talk with your agent or an insurance representative and ask plenty of questions. Find out what you need to do to expedite the claims process and the next steps you can expect.
- Step 5: Keep records of all conversations. Keep an ongoing record of each person you speak to about your claim, including their name and contact details.
- Step 6: Document ongoing expenses. Also document ongoing expenses you incur as a result of the claim, including supplies you have to purchase, costs for hotel stays while your home is being repaired and more.
Methodology
Our homeowners insurance review compared eight different companies that offer homeowners insurance. We considered several important factors when analyzing providers, including financial strength ratings from AM Best, customer service ratings through J.D. Power and user reviews on Trustpilot. We also compared providers based on their ability to offer free online quotes for homeowners coverage and other policies and on their available add-ons and insurance discounts.
Frequently asked questions (FAQ)
Can you negotiate home insurance rates?
You can't really negotiate homeowners insurance rates, but you can tweak your policy to pay less overall. For example, you can get lower insurance rates by raising your deductible or reducing the amount of liability coverage you pay for.
Why is homeowners insurance getting so expensive?
Because homeowners insurance rates consider the cost of rebuilding a home when determining premiums, any increase in the cost of existing homes or new builds directly impacts the cost of these plans. We all know that housing costs increased dramatically nationwide throughout 2022 and the first half of 2023. The National Association of Realtors (NAR) even reported that more than 80% of metro areas throughout the United States were still showing rising prices for homes in the third quarter of 2023.
What does homeowners insurance cover?
The main protections you get with homeowners insurance include coverage for your dwelling and other structures on a property, coverage for personal property and liability protection for injuries or damage to another person's property.
What does home insurance not cover?
A range of issues are never covered by homeowners insurance, including wear and tear on a property, maintenance issues, damage caused by slow water leaks and foundation settling or cracking.
What is the average homeowners insurance cost?
The average cost of homeowners insurance depends on the specifics of the property being insured, the state property is located in, policy limits and coverages and several other factors. We found that the cost of coverage for a $345,000 single-family home located in Newark, New Jersey ranged from $1,375 per year to $3,183 per year. The average across the five quotes we received came to $2,103.
AP Buyline’s content is created independently of The Associated Press newsroom. We might earn commissions from links in this content. Learn more about our policies and terms here.