11 Min to Read

10 Best Homeowners Insurance Companies in New Jersey 2021

Jackie Maroney

Jackie Maroney

Homeowners insurance is a must for a mortgage holder or just a good responsible homeowner. Find out who PropertyNest named the top insurers for homes in New Jersey. Learn why we chose them and if they offer the right coverage for you.
new-jersey-princeton.jpg

We all know now, more than ever, that life is unpredictable.

Prepare for the unknown by covering your home with homeowners insurance.

Homeowners insurance is necessary to keep you and your home protected in the case of an unforeseen emergency.

Most homeowners insurance policies provide coverage after damage from fire, theft, smoke, etc.

However, each company may differ slightly from each other, especially if moving from a different state such as New York.

Top 10 Home Insurers in New Jersey

  • Lemonade: Best Modern Insurance Company
  • Allstate: Best Home Insurance for Local Agents and Discounts
  • Amica: Best Overall Homeowners Insurance
  • Travelers: Most Experienced Homeowners Insurance Company
  • NJM: Best Insurance for Bundling
  • Cumberland Mutual: Best Insurance for Fast Claims Processing
  • Kingstone Insurance: Best Insurance for High-Value Properties
  • Selective Insurance: Best Low-Cost Home Insurance
  • USAA Home Insurance: Best Homeowners Insurance for Veterans
  • Franklin Mutual: Best Home Insurance for New Homeowners

Best Modern Insurance Company: Lemonade

In 2015, Lemonade was founded by Daniel Schreiber who once worked at SanDisk and Powermat.

Lemonade originally started by providing renters and homeowners insurance before expanding to pet and life insurance.

Lemonade has affordable policies starting at $5 a month for basic coverage.

The reason why the coverage is so cheap is that they use artificial intelligence (AI).

Instead of using insurance agents, clients on Lemonade can set up their accounts, file claims, and make changes to policies on the Lemonade mobile app.

Which Type of Coverage Does Lemonade Provide?

Lemonade mainly provides coverage in three main areas: personal property, loss of use, and personal liability.

If your items are lost, damaged, or stolen, then personal property coverage can benefit you.

Situations such as lightning, fire, hail, smoke, theft, vandalism, and more are covered under personal property.

In New Jersey, hurricane coverage is an optional add-on.

Loss of use covers situations for when you are not able to live in your own home.

If a fire, tornado, etc. wreaks havoc on your home, Lemonade renters insurance will cover additional temporary housing and living expenses.

Should someone fall on your property and get injured, personal liability protects you if they decide to file a suite against you.

Lemonade will cover your legal fees and medical bills of the hurt person.

Scenarios do vary, but reaching out to Lemonade’s customer service team can help clarify things.

What Discounts Are Available Through Lemonade?

Lemonade provides several money-saving options when purchasing insurance through them.

There are also more ways to save by bundling your policies.

Type of DiscountDescription
Material discountCovers those living in a house with fire-resistant materials.
Fire protectionFor homes providing fire safety equipment such as a sprinkler system or fire extinguisher.
Protection equipment discountProtects those who install fire and burglar alarms in their home.

What Are the Pros and Cons of Lemonade Homeowners Insurance?

When choosing an insurance company, it can be as simple as just finding the right fit.

Make a list of things you are looking for, and any possible deal breakers.

Researching the company and looking at the reviews will give you a good idea of common pros and cons to expect.

One significant pro of Lemonade is their giveback program.

The company takes 20% to cover expenses and another percentage to buy reinsurance coverage.

If there is any money leftover, Lemonade donates it to charity.

ProsCons
Lemonade’s Giveback Program allows their customers to choose a charity to donate their premiums to. Lemonade donates any money remaining to that charity.If you want to spread the word about Lemonade, your listeners may not be eligible if they live in a different state. While Lemonade is expanding on their accessibility, their reach is still limited.
Transparency with customers and no fancy jargon. Lemonade uses A1 bots to cover most of their customer service. Using bots provides quick and instant access to coverage.Lack of connecting with a live person. While the bots can handle most questions, if you have a concern that the automated bot cannot answer, you may have a hard time reaching an actual person.
Low-cost policies starting at $5.Offers few discounts in comparison to its competitors.

Best Home Insurance For Local Agents and Discounts: Allstate

Allstate is easily one of the most recognizable names in the insurance game, with major TV ads playing nationally for years.

However, you shouldn't dismiss Allstate as just another insurance giant that will treat you like a number.

Across the board, Allstate scores high for coverage, convenience, and discounts, but the true prize is that Allstate has an incredible network of agents that understand the nuances of their areas and coverage and service that their customers require.

As a matter of fact, Allstate receives rave reviews from customers particularly on their local agents and also is highly rated by J.D. Power and Associates.

What Type of Coverage Does Allstate Provide?

Besides the standard coverage, Allstate offers all kinds of extras like flood, earthquake, sports equipment, musical instruments, and garden/landscaping coverage just o name a few.

In addition, Allstate gives the average customer plenty of opportunities to earn discounts.

Standard CoverageAdditional Coverage
Damage to the interior and exterior of the dwelling and other structures on your property are covered.Personal Liability Umbrella insurance- increase the amount for personal liability coverage
Personal property is covered in cases of damage or being stolen. There is a standard cap on the coverage amount.Disaster coverage for floods and earthquakes.
Loss of use or additional living expenses incurred when you're not able to live in your home if it is not habitable.Extra coverage for itemized personal property. Coverage can also be purchased for business property and specialty items like sports equipment and musical instruments.
Medical payments for individuals injured on your property.Garden and landscaping coverage.
Personal Liability includes attorney/legal fees as well as compensation or disbursement to anyone injured on your propertyIdentity theft protection and electronic data recovery coverage. Reimbursement for legal fees or costs associated with identity theft and data recovery.

What Discounts Are Available Through Allstate?

Allstate is known for the numerous discount opportunities for their customers.

Type of DiscountDescription
Bundling discountSave up to 25% when bundling with Allstate's auto insurance.
Responsible payment discountFind savings if you have a good payment history.
Claim-free discountSave up to 20% when you switch to Allstate without having filed a recent claim.
Loyalty discountSave up to 10% when you switch to Allstate, and receive the same discount annually when you stay with Allstate.
Home buyer discountDiscounts for recent homebuyers and homeowners of new construction.
Automatic payment discountSave up to 5% when you sign up for automatic payments.
Protective device discountSave when you install security devices and smoke detectors.
Early signing discountSave up to 10% when you sign up at least 7 days before you last policy expires.

What Are the Pros and Cons of Allstate Homeowners Insurance?

Like most large national insurance companies, Allstate has some advantages that they can pass on to their customers but may be more limited in other ways.

ProsCons
Well-recognized national company with financial stabilityStandard coverage may not be as extensive as other insurance carriers
Large network of agentsIt may be hard to distinguish between Allstate-attached agents and independent agents who work with Allstate, which are preferable to Allstate's own agents.
Many discount opportunitiesDecent but not rave reviews overall for policies and payouts.
Great customer reviews for their independent agents

Best Overall Homeowners Insurance: Amica

This company has been providing reliable homeowners insurance services since 1907.

Favorites features include optional dwelling replacement, autopay discount, claims-free discount, electronic billing discount, and more.

Customers favor Amica for its high-quality support.

A dedicated Amica representative will answer your concerns via email, call, or online. Amica does not use agents to sell insurance, so you will be receiving factual information, not fluff.

Amica is highly rated with top agencies and organizations including the Better Business Bureau, J.D. Power, and the 100-year-old U.S. credit rating agency, A.M. Best.

Which Type of Coverage Does Amica Provide?

Amica provides a wide range of basic and optional coverages and the ability to customize your limits.

If the basic standards are not enough for you, you can opt for the platinum choice policy for a broader choice.

Standard CoverageAdditional Coverage
Home business coverage for lost or stolen work-related items. Also covers work-related injuries that happen inside your home.Credit card coverage for up to $5,000 if your card is stolen or used illegally.
Dwelling replacement coverage will pay if your home repairs are more than your policy limit.Water backup/sump overflow protection covers you if there is damage from water backup. You can receive up to $5,000 in damages.
Personal property replacement covers the full repair/replacement of your property, depending on your coverage limits.Computer coverage to protect your tablets, smart TVs, and phones.

What Discounts Are Available Through Amica?

There are certain ways to decrease the amount of your insurance. With a little bit of effort, you can find some great deals.

Type of DiscountDescription
Multi-line discountIf using Amica for both home and auto insurance, you could qualify for savings of up to 15%.
Alarm systemInstallation of sprinkler systems, fire alarms, and burglar alarms can decrease your premium.
Loyalty discountCustomers who have been with Amica for over two years are eligible for a discount.

What Are the Pros and Cons of Amica Homeowners Insurance?

Getting homeowners insurance may be an added cost, however, it provides a safety net in case the unforeseen happens.

Amica does not have a reward program for loyal customers, yet their friendly customer service keeps clients coming back.

Insurance Packages and BundlesAdditional Policies
Renters insuranceHurricane coverage
Homeowners insuranceJewelry coverage
Pet owners insurance which covers your pet if it is sick, injured, or requires surgery or specific medication.Add-ons for musical instruments, artwork, bikes, and more.

Best Insurance Company with the Most Experience: Travelers

With over 160 years of experience in the insurance industry, Travelers has the most experience in comparison to competing companies.

Travelers home insurance policy provides plenty of insurance options and has experience in dealing with a wide range of situations.

Which Type of Coverage Does Travelers Provide?

If purchasing a home insurance policy with Travelers, you will receive a decent amount of coverage.

Insurance policies include dwelling, other structures, and personal liability.

Insurance Policies
Dwelling
Coverage for other structures
Personal liability

What Discounts are Available Through Travelers Insurance?

There are ways to save on your home insurance by bundling your policies and researching the discounts.

You can receive more discounts by installing security equipment, fire protection devices, and certain smart home services.

When bundling three policies with Travelers, you will save up to 12% on home insurance.

These policies can include auto, boat, umbrella, etc.

You can receive a protective device discount by installing systems such as: automatic water shut-off systems, interior sprinkler systems, and home security systems.

With an early quote discount, you can save up to 10% by shopping early for your policy.

The percentage you save depends on how far in advance you shop for insurance.

Type of DiscountDescription
Bundling multiple policiesYou can save up to 12% by bundling on policies such as auto, boat, umbrellas, etc.
Protective device discountReceive a discount by installing automatic water shut-off systems, sprinkler systems, security systems, and more.
Early quote discountBy shopping early for your policy, you can earn up to 10% in savings. The earlier you shop, the more you can save,

What Are the Pros and Cons of Using Travelers Homeowners Insurance?

Support and coverage are key components of homeowners insurance.

Having an insurance company with a 24/7 available claims center is a benefit.

However, it might be pointless if the person you contact at 3am is in a bad mood during your time of need.

ProsCons
24/7 claims centerCustomer service is allegedly unfriendly
Coverage of up to $10,000 for medical paymentsThere is no additional wind damage coverage option
Savings for not having any claims or being a new homebuyerReportedly takes a while to pay claims

Best for Bundling Policies - New Jersey Manufacturers Insurance

New Jersey Manufacturers Insurance or NJM, was not always widely available except to members of certain groups.

In 2018, NJM got rid of those limits and now provides auto, renters, homeowners, and umbrella insurance to those living in New Jersey, Connecticut, and Pennsylvania.

NJM does not use agents to sell their policies, and instead sells policies directly to customers via phone and online.

NJM is incorporated as a stock company, meaning that they pay dividends and premium credits to New Jersey policyholders.

It is important to note that payments are not guaranteed.

Which Type of Coverage Does NJM Provide?

NJM provides all of the basic coverage for homeowners.

These include protection for your property, coverage for separate structures such as sheds, and liability coverage.

You have several add-on options to choose from such as additional coverage for valuable items and collectibles like jewelry, coverage for damage due to fungi, and water back protection.

Insurance Packages and BundlesAdditional Policies
Personal property insuranceJewelry and heirloom coverage
Liability coverageEarthquake insurance
Protection for your home and structuresIdentity fraud coverage to cover any expenses if someone steals your identity

What Discounts Are Available Through NJM’s Insurance?

NJM offers a variety of discounts to help their customers save.

You can qualify for a discount just by installing smoke detectors, automatic sprinkler systems, and burglar alarms. Y

ou will be surprised to see how much you can save with little effort.

Type of Discount
Discount for being 65 or older
Non-smoking discount
Multi-policy discount

What Are the Pros and Cons of Using NJM?

NJM is for those living in New Jersey, Pennsylvania, and Connecticut.

Those living outside those states are not yet eligible for NJM.

ProsCons
Possible dividend payments for those living in NJThere is no mobile app to manage policies
High level of customer satisfactionNot available everywhere

Best for Fast Claims Support - Cumberland Mutual

Providing customers with insurance since 1844, Cumberland Mutual is the oldest casualty and mutual property business in New Jersey.

Cumberland provides renters, auto, homeowners, and umbrella insurance.

Customers can expect personal service with the ability to file a claim online or reach out to the emergency after-hours claims hotline.

Which Type of Coverage Does Cumberland Mutual Provide?

Cumberland Mutual is a property and casualty company that provides homeowners and rental insurance in New Jersey.

Coverage with Cumberland is available in NJ, PA, DE, and MD.

Types of CoverageAdditional Coverage
Loss of use of homeEquipment breakdown to cover repairs and replacements
Personal liabilityService line coverage for losses associated with communication, propane, and gas
Home and attached structuresIdentity theft assistance to handle suspicious account activity

What Discounts Are Available Through Cumberland Mutual?

Everyone loves a good discount, especially when it comes to insurance.

Some discounts include: new home, alarm, and multi-policy discounts.

Type of Discount
New home discount
Alarm discount
Multi-policy discount

What Are the Pros and Cons of Using Cumberland Mutual?

If you like to deal with people personally rather than online, then you will be happy to know that Cumberland Mutual deals with their customers by building relationships. However, Cumberland Mutual does provide some online services.

ProsCons
24/7 claims hotlineDoes not offer an online quote tool
Low homeowners insuranceNot accredited with BBB

Best for High-Value Properties - Kingstone Insurance

Those looking for a higher cap on insurance will appreciate Kingstone, as their cap is higher than most insurance companies in NJ.

If purchasing homeowners insurance, Kingstone allows limits of up to $5 million in building coverage and $1 million in liability coverage.

Created in 1886, Kingstone Insurance has over 130 years of experience in the field.

There are several types of coverage to choose from, including homeowners insurance.

Which Type of Coverage Does Kingstone Provide?

With Kingstone you are not under obligation to pay a deductible for claims due to damage from winds or hurricanes.

For those living outside of New Jersey, you can still use Kingstone if you live in New York, Rhode Island, Connecticut, and Massachusetts.

There is no requirement to pay deductibles for claims against hurricane or wind damage.

Types of Coverage
Canine liability insurance
Landlord Insurance
Personal umbrella coverage

What Discounts Are Available Through Kingstone?

You can save money with Kingstone by purchasing more than one policy and installing safety protection devices.

You can save money just by protecting yourself and your family.

Type of Discount
New home purchase
Multiple policy discount
Alarm discount

What Are the Pros and Cons of Using Kingstone?

Kingstone caters to their customers, and they notice and appreciate it.

Though Kingstone offers few discounts, they offer unique options , such as dog liability and vacation home coverage.

ProsCons
Provides dog liability insuranceHigh premiums
Offers insurance for both vacation and seasonal propertiesA small amount of discounts

Best for Low-Cost Homeowners Insurance - Selective Insurance

Selective Insurance is for homeowners looking for a low-cost insurance plan.

Low cost does not mean low quality, as Selective provides their customers with plenty of options and discounts.

Daniel L.B. Smith came up with the idea of creating an insurance company after a horse and buggy accident.

In 1926, the Selective Insurance Company was born, providing personal, business and flood insurance.

While their headquarters are in Branchville, New Jersey, Selective is available nationwide.

Which Type of Coverage Does Selective Provide?

Selective Insurance is one of the largest flood insurance providers in the United States.

However, you can also receive business and personal protection as well.

Types of CoverageAdditional Coverage Options
PersonalJewelry
BusinessLost credit cards
FloodWater backup

What Discounts Are Available Through Selective?

There are several types of discounts available to customers using Selective Insurance.

Besides for the common types of discounts, Selective offers other ways to help you save.

Type of Discount
Available to those with no claims in the last three years
Savings for customers who pay on time
Bundling your home insurance policy with renters, condo, or auto insurance

What Are the Pros and Cons of Using Selective Homeowners Insurance?

There are plenty of benefits of choosing homeowners insurance with Selective Insurance but there are also a few things to look out for.

ProsCons
Low insurance premiumsDoes not offer an online quote tool
Provides flood insuranceNot accredited with the Better Business Bureau

Best for Veterans - USAA Home Insurance

USAA respects America’s veterans and makes it their number one goal to protect them and their family.

USAA also recognizes that the needs of a veteran may differ slightly from the needs of others, and USAA prioritizes those differences.

Which Type of Coverage Does USAA Provide?

Selective Insurance is one of the largest flood insurance providers in the United States.

However, you can also receive business and personal protection as well.

USAA will work with you to customize your coverage at a reasonable rate.

Coverage includes most weather-related circumstances, liability, theft, and more.

Types of CoverageAdditional Coverage Options
Uniform coverage for the loss of an active or deployed memberHome sharing coverage when renting out a room or house
FireEarthquake coverage
VandalismProtection if you have other structures such as a fence

What Discounts Are Available Through USAA?

USAA offers several different types of discounts to protect their customers.

They also provide more than just savings in insurance, as USAA also promotes savings to veterans on shopping, travel, entertainment, and more.

It is important to know that USAA no longer provides a discount for those who install smoke detectors.

Their reason being is that smoke detectors can be found in most households and are fairly common.

Type of Discount
Claims-free discount provides a 10% savings for customers with no claims for 5+years
Provides shopping and travel discounts
Home age discount - provides a discount off your premium depending on the age of your property

What Are the Pros and Cons of using USAA Homeowners Insurance?

USAA does not provide as many discounts as its competitors but their base coverage plan includes policies that usually cost additional at other companies.

While USAA is available nationwide, USAA is only accessible to veterans, those in the military, and their families.

ProsCons
Standard coverage includes more policies than most companiesLimited amount of discounts
Available nationwideAvailable exclusively to military, veterans, and their families
You can use the mobile app to file claims, check on your coverage, and moreDoes not use local agents

Best for New Homeowners - Franklin Mutual

It can be intimidating enough to own your first home but add in homeowners insurance, and you have a whole different animal.

Luckily, Franklin Mutual helps make the process seamless and easy.

Franklin Mutual creates custom policies with their customers to cater to their needs for fast and easy protection.

Which Type of Coverage Does Franklin Mutual Provide?

Franklin Mutual provides homeowners insurance with a choice to purchase an extended limit endorsement at an additional cost.

If it costs more than your coverage amount to repair or rebuild your home, then you may be eligible for Franklin Mutual to pay up to 150% of your limit.

Types of CoverageAdditional Coverage Options
Valuable Possessions - furs, jewelry, fine arts, etc.Extended limit homeowner endorsement
Landlord InsuranceSewer/Septic Backup
Condo InsuranceIdentity Theft Protection

What Discounts Are Available Through Franklin Mutual?

Once you have chosen an insurance company to handle your homeowners insurance, you may think most of the work is done.

However, it is important to do your research on the company you choose as you may miss out on special discounts and savings.

Type of Discount
New homes (eligible for those 12 years old or less)
Fire sprinklers
Mature homeowners discounts for those 55 or older

What Are the Pros and Cons of Using Franklin Mutual Insurance?

Franklin Mutual is great for new homeowners who prefer a clear and convenient breakdown from their agent rather than fancy jargon.

Franklin Mutual works with their clients to make sure they thoroughly understand the policy they are purchasing.

ProsCons
Customizable coverage optionsNot accredited with the BBB
Friendly and attentive customer serviceDoes not offer an online tool for quotes

How We Decided

It was important to choose home insurance companies that provide different types of perks.

We were particular in including a homeowners insurance policy specific for veterans to raise awareness of the different types of benefits available.

Available Discounts

Discounts are important for both the customer and the company as they have the potential to attract more clients. Businesses providing several different discounts made an impression with us.

Extra points were given if a company’s standard policy included benefits that usually cost an additional amount with other businesses. Bundling discounts were also a big plus for us as it is a smart incentive to get the customer to purchase other policies.

Customer Service

If you are dealing with a burglary or fire, chances are you are going to be upset. You need a company that offers round-the-clock service for emergencies. Companies having 24/7 service rank high in this category.

Besides being available to customers, it is also important that the customer service is friendly. The caller is going to be upset and irrational and needs a calm, level-headed person on the other end. Friendliness was a high priority here.

Unique Features

Homeowners insurance should include all of the basic protection such as personal liability, personal property, medical payments, etc. However, the additional perks and features can make a company stand out.

Those who offered uncommon policies stood out, regardless of the features were add-ons or part of their standard policy.

What is Typically Covered with Homeowners Insurance in NJ?

Besides protecting against fallen trees, vandalism, etc., homeowners insurance can also cover you against certain types of weather including lighting, wind, or hail.

If you are unable to live in your home due to covered damages, your homeowners insurance may also pay for food and alternative lodging.

There are usually six different types of home insurance policies to cover you in New Jersey.

Type of PolicyPolicy Description
Medical payments (to others)If someone hurts themself on your property, your home insurance policy will pay a limited amount of their medical bills.
Personal liabilityPays for medical bills, repair, or replacement costs if you are held responsible for physically hurting someone or damaging their personal belongings. Personal liability also handles legal fees if someone sues you.
Other structuresCovers structures not adjoined to your home. This includes sheds, fences, and detached garages.
DwellingCovers expenses to rebuild your home including: cabinets, flooring, and exterio/interior walls.
Loss of useIf your property suffers any damages causing you to move while repairs are being done, then you can receive reimbursements while you are temporarily living elsewhere.
Personal propertyCovers the cost to replace any material items if you experience a break-in or fire.

Which Additional Policies Should You Consider Purchasing?

While New Jersey is not extremely susceptible to hurricanes, Hurricane Sandy changed a lot of minds for most homeowners.

There is a reportedly 11% chance that a hurricane with winds over 74 mph will come within 50 miles of NJ.

The long-term average of this chance drops to 7% but still makes it possible that you may encounter a hurricane.

Most standard homeowners policies do not include flooding coverage.

If you live near the coast or have a basement prone to flooding, then you should look into food insurance to protect your assets.

If the home insurance company you choose does not offer flood protection, you can still cover yourself.

The National Flood insurance Program makes it possible to get the coverage you need without having to look for a new insurance company.

Frequently Asked Questions

Who has the best home insurance?
According to PropertyNest, Amica has the Best Overall Homeowners Insurance.
Who are the best homeowners insurance companies in New Jersey?
According to PropertyNest, the top ten best New Jersey homeowners insurance companies for 2021 are Lemonade, Allstate, Amica, Travelers, NJM, Cumberland Mutual, Kingstone Insurance, Collective Insurance, USAA, and Franklin Mutual.
Do you need home insurance in New Jersey?
No, home insurance is not required in New Jersey. However, your lender may require you to have coverage if you have a mortgage.
How much does homeowners insurance cost in New Jersey?
The average cost of homeowners insurance in New Jersey is $1,161 a year or $97 a month, according to LendingTree Inc.
Can you negotiate home insurance rates?
Home insurance policies are mostly not negotiable, but parts of it can be which can affect the price.
Does your home insurance increase after a claim?
Yes, typically home insurance rates increase after you file a claim.

Search for Home Rentals in NYC

Search for your next home based on a credit
score, price, neighborhood & more.

Find Your New Home