How Much Does Homeowners Insurance Cost in New Jersey?

Residents of the Garden State enjoy a lower-than-normal home insurance rate. The annual average is less than $1,000 annually – almost half the national average of $1,800 per year.

A $300,000 home in New Jersey averages between $885 and $950 per year. Compare that to neighboring New York, where a house of similar value can cost up to $1,176 per year. Florida, also on the Atlantic Ocean, has an average of $2,200 for the same home.

Why is home insurance so cheap in New Jersey? It could be the overall lower cost of living residents here enjoy.

New Jersey does have its fair share of severe weather events with its proximity to the ocean. Flooding and high winds are two of the most common. Don’t forget that your standard home policy does not include coverage for flooding from a weather event.

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Does New Jersey Have the 80% Homeowners Insurance Rule?

In the details of your home insurance policy, you will most likely find language that addresses the 80/20 rule or the 80% rule. It’s not a state function, but an insurance industry standard.

Simply put, if you don’t have enough coverage to pay for at least 80% of your home’s replacement value cost (RVC), your insurance company will not payout the full amount of your policy in the event of a claim.

For example, if your home has an RCV of $350,000, you should be covered for at least $280,000 (80% of $350,000). If the home is insured for less than that, the insurer will only pay out a portion of the minimum coverage purchased. Remember, if you make improvements to your home, you’ll need to increase your coverage amount to 80% or higher of the replacement cost.

How Do Home Insurance Deductibles Affect Rates in New Jersey?

When purchasing a home insurance policy in New Jersey, you’ll need to decide on the deductible. This is the amount you will pay in the event of a claim. If your goal is to lower your insurance premium, you should raise your deductible. Remember to keep your deductible at a level you can reasonably pay or afford to lose (if it is deducted from your claim check).

If your deductible is $1,500 and your claim is worth $7,000, you will pay $1,500 and your insurer will pay $5,500. This is one way to lower your premium.

Compare Home Insurance Rates by Coverage Levels in New Jersey

One of the most important factors determining your premium amount is how much dwelling coverage your policy is worth. This number represents how much it will cost to rebuild your home in the event of a total loss. It’s best to be completely honest about this number; you don’t want to need it and not have it. Here are some average annual costs for New Jersey residents based on the value of their home.

Dwelling Coverage (New Jersey) Average Annual Insurance Cost
$100,000 $400
$200,000 $650
$300,000 $885
$400,000 $1,100
$500,000 $1,300

At InsureOne, we can help you find the best home protection at the best price. We’ll shop around for you and provide you with the top options so you can choose.

Is Home Insurance Tax Deductible in New Jersey?

There are not many circumstances where you can deduct your home insurance from your taxes. If you have a home office, you may be able to take some off for that. Otherwise, if you have had a home insurance claim denied, you may be able to find some remedy on your taxes.

Bundling Home and Auto Insurance in New Jersey

You can save up to 25-30% on your policy by bundling your home insurance with your auto coverage in New Jersey. Bundling means allowing one insurer to carry policies for two or more of your insurable items. Another way to save money is to ask for discounts. Everyone qualifies for some type of discount. Here are a few:

  • Senior Citizen
  • Military
  • Payment Options, such as autopay
  • Be sure and ask your InsureOne agent what discounts you may qualify for when you contact them to purchase or renew your policy.
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What are the Different Types of Home Insurance?

There are 8 different types of homeowners insurance policies and they all provide coverage for that special place you call home – whether it’s a brick Tudor in Trenton, a manufactured home in Madison or a high rise apartment in Atlantic City.

Most people buy an HO-3 policy, the most common homeowners coverage in New Jersey. These policies are based on the replacement cost of your home, but personal possessions are included at actual cash value, which takes into account depreciation. Expensive art and jewelry may need additional endorsements on your policy.

Purchasing the correct type of home insurance is vital. Let an InsureOne professional guide you through the process

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What Weather Affects Home Insurance Costs in New Jersey?

Because New Jersey touches the Atlantic Ocean, residents already know they may be impacted by hurricanes. Otherwise, the state experiences cold and snowy winters and warm, humid summers. Those living in the northern part of the state may see up to 50 inches of snow annually, while those in the south might get 10-15 inches of the white stuff.

Snow and ice can have detrimental effects on houses. The weight of snow can damage roofs, while melting snow can cause wood rot and flooding. Ice is dangerous, as well, since it can cause foliage and trees to fall. Melted water that re-freezes can expand cracks and cause an entryway into the home or basement.

Overall, though, in the larger picture, New Jersey isn’t a state that insurers fear as much as others. And that reality is enjoyed by homeowners with lower costs.

What Does Homeowners Insurance Cover in New Jersey?

Most policies cover the damage you may experience after a hurricane, such as wind damage to your roof. If you experience a fire, your policy should help you rebuild or renovate. Typical home insurance in New Jersey will also compensate you if your laptop is stolen from your vehicle or your hotel room while you are on vacation in Florida.

However, most policies don’t cover flooding caused by an event, such as a hurricane. If your area is prone to flooding, you may need to buy a policy from a government source.

Here is what a typical home insurance policy covers:

  • Property damage: Pays for damage to your home, other buildings on your property and items inside your home.
  • Personal liability: Helps pay for legal costs if someone is injured or their property is damaged.
  • Medical payments: Helps pay medical costs for someone injured at your home.
  • Additional living expenses: Pays for your expenses if you must relocate while your home is being repaired or rebuilt.

Get the Best Homeowners Insurance in New Jersey Today

At InsureOne, our agents are ready to find the protection that you and your home deserve. We don’t believe that insurance is one-size-fits-all. We customize your policy with flexible options so you get what you need. Let us save you time and money by doing the shopping for you. Reach out to us today by phone at (800) 836-2240 or find a quick  home insurance quote online. You are also welcome to stop by one of our convenient New Jersey locations.