Table of Contents
- How much does renters insurance cost in New Jersey?
- Average price of renters insurance in New Jersey by city
- Average price of renters insurance in New Jersey by insurance company
- The cheapest renters insurance in New Jersey: Lemonade
- The best renters insurance in New Jersey: State Farm
- Other New Jersey renters insurance providers you should consider
- How to learn more about renters insurance providers in New Jersey
- What else do you need to know about renters insurance in New Jersey?
- How we gathered our data on New Jersey renters insurance prices
How much does renters insurance cost in New Jersey?
In New Jersey, renters insurance costs $17.51 on average, which is relatively cheap, considering the national average is closer to $20.
Lemonade gave the most affordable quote that we received, offering a policy for only $5 a month in Clifton — around a third of the state’s average price. Progressive gave the most expensive quote at $48.05 a month in Newark, which is almost triple the statewide average.
Insurers tend to charge more for renters insurance in urban areas, which is why the most populated cities like Newark ($22.79) and Paterson ($20.82) have high renters insurance premiums. This is because urban areas tend to have higher-than-average property crime rates. If you live in an area where theft is common, you’re more likely to file a claim for your stolen items, and your insurer will charge you a higher premium.
Several other factors also affect the price of renters insurance in New Jersey:
- Frequency of natural disasters: There are forest fires in New Jersey every year. Renters insurance covers fire, and if you’re looking to rent anywhere near at-risk areas, the price of your policy will go up.
- Coverage: Perhaps burglary is common in your neighborhood, and you want to increase the limit of your personal property coverage. Doing so will always increase the cost of your renters insurance premium.
- Zip Code: Your insurer knows if your home is far away from the nearest fire station or if it’s in a flood-risk zone. They’ll raise the price of your renters insurance accordingly.
Average price of renters insurance in New Jersey by city
The table below shows the data we’ve collected on the average monthly and annual price of renters insurance in NJ’s major cities.
|City||Average price (monthly)||Average price (yearly)|
Average price of renters insurance in New Jersey by insurance company
The following table shows how each insurance company’s prices compare with the average cost of renters insurance in New Jersey.
|Insurer||Price||Difference from average|
The cheapest renters insurance in New Jersey: Lemonade
Lemonade offers the cheapest NJ renters insurance, with an average price of $9.61 per month. They’re closely followed by State Farm at $10.30.
Lemonade is particularly cheap in Vineland, where their renters insurance costs $6.50, equating to more than a 58% price reduction on the city’s average.
However, it’s still worth checking to see which insurer offers the cheapest policy in your area because there’s a handful of cities like East Orange where Lemonade isn’t the most affordable option (costing $17 to State Farms’ $11.58).
Should you get Lemonade’s renters insurance in New Jersey?
If you’re looking for the least expensive renters insurance in New Jersey, you should buy a policy from Lemonade, but if you’re more concerned about the quality of your coverage, you should look elsewhere.
Lemonade is a relatively new insurance company that is yet to receive an AM Best rating (which measures creditworthiness). Until that happens, no one can tell you how safe a choice Lemonade is. For now, be aware that their long-term financial health is uncertain and there are concerning reports suggesting they are more likely than other providers to reject claims.
Here are Lemonade’s other benefits and disadvantages:
Benefits of Lemonade renters insurance in New Jersey
- Replacement cost coverage: It’s impressive for a company that offers renters insurance so cheaply to provide replacement cost policies exclusively. With a replacement cost policy, if you break your television, Lemonade will reimburse you for the cost of a brand-new model, not for its actual cash value, which could be a lot less.
- Fast payouts: According to Lemonade, they handle 30% of claims instantly through their AI. If your claim is simple, you’ll receive your payout quickly.
Disadvantages of Lemonade renters insurance in New Jersey
- Poor customer service: Not every claim can be dealt with by Lemonade’s AI. If your claim is a little more complicated and you need the help of a (human) representative, you could be waiting a long time before anyone gets back to you.
Overall, Lemonade isn’t a bad choice for renters insurance, but given that they’re still a new company with a short track record, we’re hesitant to call them the best in New Jersey.
The best renters insurance in New Jersey: State Farm
State Farm is marginally more expensive than Lemonade (they’re $0.69 pricier per month), but they’ve been selling insurance for nearly 100 years, so they’re more of a known quantity. They have an AM Best rating of A++, which means there’s little chance of them becoming insolvent any time soon.
Benefits of State Farm renters insurance in New Jersey
- Coverage: If you want a comprehensive renters insurance policy, State Farm is the best choice. They have a competitive range of standard protections, and like Lemonade, their policies all provide replacement cost coverage. They offer several additional renters insurance riders for things like jewelry to compensate for your losses if your expensive possessions are damaged or lost. Uniquely, they also sell wedding present coverage to protect your gifts for up to 90 days before and after your ceremony.
- Customer service: State Farm has a reputation for good customer service, which probably has something to do with the personable insurance agents they have in every city in New Jersey. They’re consistently ranked as better than average by the customer reviews on the Better Business Bureau’s website.
- Dog-friendly: While most insurers’ personal liability coverage excludes specific dog breeds, State Farm has pledged that they will never ask what breed your dog is, although they do ask about bite history.
Disadvantages of State Farm renters insurance in New Jersey
- Limited discounts: State Farm’s discounts are unimpressive. They only offer three discounts on renters insurance: one for installing home security measures, one for bundling your auto and renters policies, and another for increasing your renters insurance deductible (the amount you pay to receive reimbursement from your insurer). The first two are commonplace; the third isn’t really a discount because the savings you make on your premium won’t make up for the larger fee if you make a claim.
Ultimately, State Farm’s affordable prices and comprehensive coverage outweigh their limited discount options, which is why they’re our pick for the best renters insurance company in New Jersey.
Other New Jersey renters insurance providers you should consider
Every renter has different priorities when it comes to insurance, which is why we’ve chosen our favorite insurers in New Jersey for the following:
- Forest fire coverage
- Theft coverage
- Military persons
Best New Jersey renters insurance for forest fire damages: State Farm
New Jersey has been hit by just about every kind of natural disaster in the past decade. Your policy won’t cover them all, but it will cover the most common: forest fires.
State Farm is the best insurer when it comes to forest fire damages because they offer the longest loss-of-use coverage. While some of the other insurers we looked at, like Liberty Mutual, only offered 12 months’ worth of coverage, State Farm offered an impressive 24 months.
Given that fires burn through New Jersey’s forests every year, it’s worth comparing the duration of each insurers’ loss-of-use coverage in case your home is ever affected.
Best New Jersey renters insurance for theft coverage: Farmers
Unfortunately, if you live in a city like Newark, the FBI’s crime statistics suggest you have a 1 in 50 chance of being the victim of a property crime like burglary, which is why we recommend Farmers. The minimum deductible you can get with most insurers is $250, but Farmers will go as low as $100, which is handy if you can’t afford to pay very much if you have to file a claim
They also offer several extra endorsements that can apply to theft:
- Scheduled property rider: A standard renters insurance policy covers your valuable items, but only up to your policy sub-limits (which can be as little as $1,000 for your jewelry). If you buy this rider, Farmers will raise your sub-limits so that you’ll receive a bigger reimbursement for your most valuable items.
- Personal articles floater: This covers your stuff on an item-by-item basis, providing extra coverage for specific possessions that are particularly important to you.
- Identity fraud rider: If your personal information is stolen, this rider insures you for up to $25,000 in legal fees, lost income, and travel-related expenses.
- Replacement cost: Like Lemonade, Farmers offer replacement cost coverage on lost or stolen items. (However, unlike Lemonade, they don’t offer it for free.)
While many other insurers offer these add-ons, Farmers has a reputation for more readily paying out claims than their competitors do. You might prefer a cheaper provider, but if they’re known for denying claims unfairly, you’re wasting your money.
Best New Jersey renters insurance for those with military links: USAA
USAA’s renters insurance is widely celebrated for excellent customer service, and they offer extensive coverage for personal belongings (including any military equipment, which they’ll waive your deductible for).
Unusually, their renters insurance also includes flood coverage, so you won’t have to take out a separate flood insurance policy. Although flooding isn’t a statewide problem, if you live in one of New Jersey’s coastal cities where tidal flooding is common, we recommend USAA’s flood-inclusive insurance.
Unfortunately, USAA only offers insurance to people currently in the military, veterans, and family members of USAA members. They don’t make exceptions, so if you’re not eligible, you’ll have to find another provider.
How to learn more about renters insurance providers in New Jersey
If you want to be sure you get the best renters insurance in NJ, check out our reviews of these companies:
What else do you need to know about renters insurance in New Jersey?
Although renters insurance policies are similar in every state, what you need coverage for can vary greatly depending on where you live. We’ve gone through some New Jersey-specific questions below:
Does renters insurance cover windstorm and lightning damage in New Jersey?
For those living in the cooler parts of northwest New Jersey, where lightning storms are common, you’ll be relieved to know renters insurance covers lightning damage, as well as windstorm and hail damage. Note that if a storm damages your home, only your belongings are insured — the building itself is covered under your landlord’s insurance.
Does renters insurance cover flood damages in New Jersey?
Aside from USAA, most renters insurance providers don’t cover floods in New Jersey. Many insurers do offer flood insurance, but you’ll have to pay hundreds of dollars a year for a separate policy.
Fortunately, you only need to get flood insurance in New Jersey if you live near the coast (here’s looking at you, Atlantic City). If you do, ask your insurer whether they offer flood insurance from the National Flood Insurance Program or visit the NFIP’s website for a recommendation.
Does renters insurance require a credit check in New Jersey?
Yes, most renters insurance providers run your credit in New Jersey before they will offer you a policy. If you have good credit, you’ll pay less for your policy because insurers think you’re less likely to file claims.
Can landlords require renters insurance in New Jersey?
Yes, landlords can require that you buy renters insurance in New Jersey before they agree to rent their property to you. There aren’t any laws preventing your landlord from writing the lease with this requirement.
How we gathered our data on New Jersey renters insurance prices
During our research, we used the following information to collect quotes from renters insurance providers across New Jersey’s 15 biggest cities by population:
- Insured party: 30-year old male, employed, bachelor, with no pets
- Personal property coverage: $30,000
- Personal liability coverage: $100,000
- Guest medical coverage: $1,000
- Loss-of-use coverage: Insurer’s default (typically calculated from personal property coverage)
- Deductible: $500
The price of renters insurance in New Jersey: complete data set
The following table shows all the quotes that we received from the nine renters insurance companies we surveyed.
Scroll right to see more.
|City||Allstate||Geico||Progressive||State Farm||Liberty Mutual||Nationwide||Lemonade||Midvale||Farmers|