You may be wondering how much home insurance costs in New Jersey. The cost of home insurance is different depending on where you live.
Average Homeowners Insurance in NJ
The average price of home insurance in New Jersey varies depending on where you live. The following is the average annual cost in three different areas:
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How Is Home Insurance Priced
There are several factors that determine how much homeowners insurance costs in New Jersey. On average, newer, smaller homes that are located inland are less expensive to insure than older, larger homes near the New Jersey coast.
Your state’s exposure to weather plays a significant role in how much you pay for homeowners insurance. Home insurance in New Jersey can cost a little more because part of the state is located along the coast. This means that homes in New Jersey are at risk for high winds, hurricanes and flooding—some more than others of course.
The closer your home is to the coast, the more your insurance rate will go up to cover that risk. For example, if you live 1,500 feet from the New Jersey coastline, you’ll pay more for home insurance than someone who lives 15 miles from the coast. This is true even though flood damage isn’t covered by home insurance.
Hurricanes aren’t the only form of hazardous weather that the average New Jersey resident is exposed to. Snowstorms and ice dams can also damage your property—particularly the roof of your home—so think about protecting yourself and your home from these winter events.
Size of Home
Another factor that affects the cost of homeowners insurance in New Jersey is the size of your home. On average, a simple ranch house is cheaper to rebuild and replace than a larger, complex house. As a result, the cost to insure this type of home will be less.
The same holds true for your personal belongings. If your home is filled many valuable items, the cost to insure those items will be higher.
Age of Home
The age of your home also impacts your insurance premium. Typically, newer homes are cheaper to insure than older homes because they have endured less wear and tear over the years. As a result, the structure of a newer home, as well as its systems, are less likely to cause you problems.
Proximity to Fire Station
Another determining factor is the distance between your home and the nearest fire station. Let’s say you live in a rural part of New Jersey that is 15 miles away from the nearest fire station. In this case, it will take firefighters longer to arrive at your home than a home that’s only a mile away. As a result, your home on average will cost more to insure.
Number of Claims
The number of home insurance claims filed across a state can also affect the average cost of home insurance in that state. The more claims that are filed, the greater the average cost of insurance. The total value of those claims can also affect the cost.
Customize Your Coverage
Another factor that insurance companies consider when determining the cost of your homeowners insurance premium is how much insurance you buy. Your average homeowners insurance policy will typically include the following:
- Dwelling – Covers damages to the physical structure of your home. It’s used to repair or rebuild a home if it’s damaged by a fire, storm or some other event covered by your homeowners policy.
- Other Structures – Pays to repair or replace structures on your property that are disconnected from the main house, such as a garage, fence or shed.
- Personal Property – Covers the cost of personal property damage or theft. Applies to possessions inside and outside of the home, such as furniture, TVs and computers.
- Additional Living Expenses (or Loss of Use) – Reimburses you for lodging, meals and other related expenses if you need to vacate your home due to severe damage.
- Personal Liability – Provides protection if the homeowner is legally responsible for property damage or injuries to others. It may help pay for legal expenses, medical bills and other costs.
Beyond these standard coverages, you may want to customize your New Jersey homeowners policy to ensure that you have the best possible protection. There are many optional coverages that you can purchase based on your particular needs. It may cost a little more up front, but it should be worth the investment in the long run.
Water Backup is a great example of a coverage you may need. If your sump pump fails, or water comes up into your house from the plumbing system, Water Backup insurance will help cover the cost of the damage, saving you from an expensive repair bill.
Discounts in New Jersey
The rising cost of insurance is a common complaint these days. Fortunately, insurance companies offer a variety of discounts that will help you save on your homeowners insurance premium in New Jersey.
Security Protection Devices
Investing in protective devices like fire and smoke detectors, sprinkler systems and security systems—especially if they’re centrally monitored—will help drive down the price of your home insurance in New Jersey.
Connected Home Devices
You could save if your home is equipped with internet-connected devices that protect you from theft, fire or water damage. For example, many insurance companies will give you a discount if you have a water leak sensor. In this case, if you’re sump pump fails, your phone will alert you before severe damage happens.
Putting storm shutters on your house, especially if you’re close to the New Jersey coast, will better fortify your home’s physical structure. It may cost some money upfront to install, but it will lower your home insurance premium, plus save you the headache of the claim.
Age of Roof
Another potential home insurance discount in New Jersey is the age of your roof—the newer your roof, the more you save. If you replace your roof, it’s best to call your insurance company and let them know.
Another great way to lower your premium in New Jersey is through bundling. Bundling is when you buy two or more policies from the same insurance company. For example, you can bundle your homeowners insurance with your auto insurance. Many carriers will even give you a discount if you bundle your home or auto policy with an umbrella insurance policy.
New Business/Advanced Quote
Shopping early might be the best way to save money on your home insurance. That’s because many companies offer new business discounts just for signing up and an additional discount if you shop in advance of your prior policy’s renewal.
You may receive another discount on your homeowners insurance if you belong to an affinity group. Affinity groups can include alumni associations, credit unions, teachers’ associations and AARP. It’s worth asking your independent agent in New Jersey which affinity group discounts your insurance company might have available.
New Jersey homeowners have many decisions to make when buying a homeowners insurance policy. One of those decisions is the amount of your deductible. A homeowners deductible is how much you’re required to pay out of pocket toward a homeowners insurance claim. Choosing your deductible plays a significant role in how much you pay for insurance.
A good rule of thumb is the lower your deductible, the higher your premium. Therefore if your goal is lower home insurance rates, it pays to keep your deductible higher. It’s worth remembering that your deductible should only be as high as you can reasonably pay in the case of an actual loss.
As a coastal resident of New Jersey, your home insurance policy may include a separate deductible for hurricane claims. The amount of this deductible, which is usually a percentage of your Dwelling coverage amount, will be higher than your policy’s regular deductible.
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