How Much Does New Jersey Home Insurance Cost?
The average premium for homeowners insurance in America is $1,132, but if you live in New Jersey, you might pay less. The average premium is $1,092, making it cheaper to buy home insurance in New Jersey than in most other states.
What Does My Home Insurance Do for Me?
Sometimes, disasters strike suddenly and with no warning for homeowners. Think of your home insurance as a backup plan that helps you stay afloat after an unexpected catastrophe.
Pays for repairs to your home and your belongings.
- Example: A tree falls on your house, and rain ruins your 60" Samsung TV.
Pays for someone else’s injuries or property damage when it’s your fault.
- Example: Your kid is playing baseball and accidentally smacks the ball through your neighbor's window.
Pays for temporary living expenses when your home is damaged
- Example: You need a hotel while your house's roof is being repaired due to a fallen tree.
Will I Actually Use My Homeowners Insurance?
We can’t be 100% certain, but last year insurance companies spent more than $1.1 billion on home insurance claims in New Jersey. That's a lot of unfortunate events happening to New Jersey homeowners.
How Is My Homeowners Insurance Calculated?
Insurance carriers calculate the cost of a home insurance policy by asking, "How likely is it that something bad will happen?" The more likely it is that something bad will happen, the more expensive the home insurance policy will be, and vice versa. We call these potential disasters "risk." Let’s take a look at how risky New Jersey is compared to the rest of the US.
Crime
Break-ins and burglaries are an ongoing problem in New Jersey. In fact, theft is one of the most common homeowners’ insurance claims.
- Average number of burglaries per 1,000 homes in NJ: 16.26
- Average number of burglaries per 1,000 homes in the US: 24.9
Weather
New Jersey is famous for long, cold winters that can lead to serious problems for homeowners, like frozen pipes, flooding due to snowmelt, and roof damage.
- Most common cause of disasters in the state: Floods