Best homeowners insurance in Newark, NJ (2024)

We looked at average costs, customer service ratings, and policy options from multiple top insurers to find the best and cheapest home insurance companies in Newark.

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By

Pat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a licensed insurance expert and managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.

Edited by

Jennifer GimbelJennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer Gimbel is a senior managing editor at Policygenius, where she oversees all of our insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Updated|3 min read

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The average cost of homeowners insurance in Newark is $1,032 per year for a policy with $300,000 in dwelling coverage, according to our latest insurance pricing analysis.

With its proximity to the Atlantic Ocean, Newark has seen its share of bad weather, including nor’easters and hurricanes. So homeowners in Newark will want to have the best home insurance to withstand any weather event.

Compare home insurance rates in Newark

Compare the best cheap homeowners insurance companies in Newark

Based on our findings, NJM, State Farm, Farmers, and Chubb are the best home insurance companies in Newark.

To find the best cheap homeowners insurance in Newark, Policygenius reviewed over a dozen of the largest insurance companies in New Jersey and chose the five with the highest overall Policygenius rating.

Our ratings are based on each company's financial strength and customer service ratings, the number and quality of available coverage, and average policy premiums in each of Newark's 9 ZIP codes.

Company

Average monthly cost

Policygenius rating

NJM

$89

5.0 out of 5

State Farm

$95

4.8 out of 5

Farmers

$103

4.5 out of 5

Chubb

$90

4.3 out of 5

Methodology & why you can trust our rates

Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

All rates based on the above coverage limits except where otherwise noted.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.

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2024 Policygenius award winner

NJM Insurance

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starFull orange star

5.0

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A+

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Offers flood insurance

Offers earthquake insurance

Age 65+

Why we chose itchevron icon

NJM is the best overall home insurance company in Newark for its cheap rates, range of coverage add-ons, and highly-rated customer service.

Pros and conschevron icon

Pros

  • Cheap rates and 9 discounts to save even more, including ones for being a non-smoker and owning a back-up generator

  • Excellent NAIC score for customer service — received 100% fewer complaints than other insurers of its size in 2021

  • Offers a variety of lesser-seen endorsements, such as earthquake, flood, and assisted living care coverage

Cons

  • Doesn’t offer mobile app or customer service via online chat

More detailschevron icon

Why we chose NJM

NJM is the best overall homeowners insurance company in Newark. While NJM is a small company, its rates and coverage options stack up well against those of a much larger company.

We found that NJM has among the cheapest homeowners insurance among major insurance providers in Newark, on average. NJM also offers a few discounts — including a non-smoker discount — that you can use to lower your rates even more.

NJM has a few useful add-ons, too. You can get water backup coverage, flood insurance (via the company's partnership with Wright Flood), scheduled personal property coverage, and others.

How do NJM home insurance rates compare to the average in Newark?

The average cost of NJM home insurance in Newark is $1,062 per year, which is 3% more expensive than the citywide average of $1,032 per year.

How to get a quote

Online through NJM

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2024 Policygenius award winner

State Farm

State Farm logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Offers extended replacement cost

Offers flood insurance

Offers earthquake insurance

Wind/hail deductible

Offers wildfire insurance

Why we chose itchevron icon

State Farm is one of the best home insurance companies in Newark thanks to its large selection of policy options, high customer service marks, and industry-best financial stability ratings.

Pros and conschevron icon

Pros

  • Top-tier coverage add-ons, including extended replacement cost coverage

  • High customer satisfaction and financial strength ratings

  • Offers large discounts when you bundle your home and auto insurance

Cons

  • 20% more complaints filed with the NAIC than other companies of its size

  • No discounts for first-time homebuyers

  • Rates are more expensive than average in NJ

More detailschevron icon

Why we chose State Farm

State Farm is the best home insurance company in Newark for those who want to customize a basic policy with home insurance endorsements. With State Farm, you can get extended replacement cost coverage for your home, replacement cost coverage for your personal property, water backup protection, and much more.

You also get top-rated customer service with State Farm. The company has received high ratings from policyholders according to J.D. Power’s 2022 customer satisfaction, claims, and digital experience surveys. It has also received the highest rating possible from A.M. Best for financial strength and stability.

In Newark, State Farm's rates are higher than average. The company doesn't offer the same number of discounts as other insurers in the state, but if you're planning to bundle home and auto insurance with State Farm, you may receive a large discount.

How do State Farm home insurance rates compare to the Newark average?

The average cost of home insurance from State Farm in Newark is $1,142 per year, which is 11% higher than the citywide average.

How to get a quote

Online through State Farm or by contacting your local State Farm agent.

award icon

2024 Policygenius award winner

Farmers

Farmers Insurance logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.5

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Offers extended replacement cost

Bundle home & auto

Smart home discounts

Why we chose itchevron icon

Farmers is the best home insurance company in Newark for homeowners who want to add coverage to their policies. Farmers also has affordable rates, a range of discounts, and high claims satisfaction scores.

Pros and conschevron icon

Pros

  • Optional extended or guaranteed replacement cost dwelling coverage

  • Receives few complaints from policyholders and has a high claims satisfaction score

Cons

  • Below-average scores on J.D. Power’s overall customer satisfaction and digital experience surveys

More detailschevron icon

Why we chose Farmers

Farmers is the best homeowners insurance company in Newark if you want to add coverage to a basic policy, including guaranteed or extended replacement cost coverage, water backup protection, and a personal articles floater.

Farmers also earned a high score in J.D. Power’s 2022 claims satisfaction study (though it was below-average on J.D. Power’s overall customer satisfaction and digital experience surveys). Plus, Farmers receives fewer complaints than average, according to the National Association of Insurance Commissioners.

There are a few ways that homeowners can lower their rates with discounts. Farmers is one of the best companies for bundling home and auto coverage (you could save up to 18% on your premiums by bundling). The company also offers more than a dozen other discounts, many of which are easy for most homeowners to qualify for.

How do Farmers home insurance rates compare to the average in Newark?

The average cost of Farmers home insurance in Newark is $1,237 per year, which is 20% more expensive than the city's average annual premium of $1,032 per year.

How to get a quote

Online through Farmers

award icon

2024 Policygenius award winner

Chubb

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.3

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

All 50 states

Offers flood insurance

Offers extended replacement cost

Offers wildfire insurance

Smart home discounts

Bundle home & auto

Mobile app

New homebuyer discount

Why we chose itchevron icon

Chubb is the best home insurance company for people with high-value and luxury homes, as well as other assets that need to be insured, like boats and luxury cars.

Pros and conschevron icon

Pros

  • Extended replacement cost coverage

  • Cash-out claim settlements

  • Complimentary wildfire and hurricane mitigation services

Cons

  • Below-average J.D. Power customer satisfaction ratings

More detailschevron icon

Why we chose Chubb

Chubb is the best home insurance company in Newark for high-value homes. While it's more expensive than average, Chubb's coverage offerings and specialized features make it our top pick for high-net worth individuals.

Chubb offers a range of robust coverages on top of its basic home insurance protections. These add-ons include extended replacement cost coverage for your home, replacement cost coverage for your personal property, water backup coverage, blanket personal property coverage, equipment breakdown coverage, and more.

You can also get a few special features with Chubb, like property manager services for a second home, high-tech home inspections, and personalized claims services.

How do Chubb home insurance rates compare to the Newark average?

The average cost of home insurance from Chubb in Newark is $1,082 per year, which is 5% more expensive than the Newark average of $1,032 per year.

How to get a quote

Online through Chubb

Compare home insurance rates in Newark

How much is homeowners insurance in Newark?

The average cost of homeowners insurance in Newark is $1,032 per year, or $86 per month, according to our analysis of quoted premiums in every ZIP code in the city.

This makes Newark home insurance around 16% more expensive than the New Jersey state average of $886 per year, but 41% cheaper than the national annual average of $1,754.

Newark home insurance rates by ZIP code

To help you find out how much home insurance costs where you live, we calculated average home insurance rates in Newark's 9 ZIP codes.

ZIP code

Average annual cost

Difference from state average (%)

07105

$995

12%

07104

$1,050

19%

07107

$1,026

16%

07103

$1,052

19%

07106

$1,063

20%

07108

$1,057

19%

07112

$1,032

16%

07114

$994

12%

07102

$1,016

15%

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Cheapest ZIP codes for home insurance in Newark

With an average annual premium of $994, the 07114 ZIP code has the cheapest average home insurance rates in Newark.

ZIP code

Average annual cost

Difference from state average (%)

07114

$994

12%

07105

$995

12%

07102

$1,016

15%

07107

$1,026

16%

07112

$1,032

16%

Most expensive areas for homeowners insurance in Newark

With an average annual premium of $1,063 per year, the 07106 ZIP code has the most expensive home insurance rates in Newark.

ZIP code

Average annual cost

Difference from state average (%)

07106

$1,063

20%

07108

$1,057

19%

07103

$1,052

19%

07104

$1,050

19%

Learn more >> Home insurance rates by ZIP code

Newark home insurance costs by coverage amount

Dwelling coverage is the part of homeowners insurance that covers the structure of your home in case it's damaged or destroyed by a covered event, like a fire or windstorm. A policy's dwelling coverage limit should equal to the home’s replacement cost, which is the amount it would cost to rebuild the home from the ground up.

A higher dwelling coverage limit generally means higher homeowners insurance premiums, and vice versa. Here is the average cost of home insurance in Newark for five different levels of coverage.

Dwelling coverage limit

Average annual cost

$100,000

$487

$200,000

$795

$300,000

$1,032

$400,000

$1,274

$500,000

$1,544

Newark home insurance costs by deductible amount

Your home insurance deductible is the amount you’re responsible for paying on each claim before insurance helps cover the remainder of the loss.

Newark residents can save $400 each year by choosing a $1,000 deductible over a $500 one.

Deductible

Average annual cost

$500

$1,317

$1,000

$809

$2,000

$894

Cheapest homeowners insurance companies in Newark

Based on our analysis, Cumberland Mutual, Selective Insurance, UPC Insurance, Franklin Mutual Insurance, and National General are the five cheapest home insurance companies in Newark, with average premiums ranging from $681 to $1,237 per year.

Company

Average annual cost

Cumberland Mutual

$681

Selective Insurance

$781

UPC Insurance

$904

Franklin Mutual Insurance

$1,033

National General

$1,042

NJM

$1,062

Preferred Mutual Insurance

$1,081

Chubb

$1,082

Narragansett Bay

$1,099

USAA

$1,105

State Farm

$1,142

The Philadelphia Contributionship

$1,163

Farmers

$1,237

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Cheapest home insurance in Newark if you have poor credit

Your credit score can impact your home insurance rates. Homeowners with poor credit scores are viewed by insurance providers as higher risk, so they’ll often be charged expensive rates as a result.  

With an average rate of $1,033 per year, Franklin Mutual has the cheapest home insurance rates in Newark for homeowners with poor credit, while Farmers' average yearly premium of $2,351 is the highest.

Company

Average annual cost

Franklin Mutual Insurance

$1,033

Selective Insurance

$1,139

Narragansett Bay

$1,401

Cumberland Mutual

$1,458

Preferred Mutual Insurance

$1,491

UPC Insurance

$1,509

National General

$1,542

Chubb

$1,549

NJM

$1,592

The Philadelphia Contributionship

$1,713

USAA

$1,824

State Farm

$1,923

Farmers

$2,351

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Cheapest home insurance in Newark if you have an older home

It can be expensive to insure older homes since they're more prone to structural damage than newer homes. They're also often constructed with materials and features that would be more expensive to replace after a claim.

With an average annual premium of $681, Cumberland Mutual offers the cheapest home insurance rates for an older home in Newark.

Company

Average annual cost

Cumberland Mutual

$681

Selective Insurance

$797

Chubb

$943

UPC Insurance

$970

Farmers

$1,025

Franklin Mutual Insurance

$1,033

USAA

$1,072

Preferred Mutual Insurance

$1,081

National General

$1,094

NJM

$1,132

State Farm

$1,142

Narragansett Bay

$1,156

The Philadelphia Contributionship

$1,163

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Cheapest homeowners insurance in Newark if you have a history of claims

Having a history of claims is one of the most likely reasons why your rates could be expensive. If you have multiple claims on your record, insurers will think you're more likely to file future claims than a homeowner without any past claims.

With an average annual premium of $943, Chubb offers the cheapest home insurance rates in Newark for a homeowner that's filed three claims within a five-year period, while Farmers is the most expensive.

Company

Average annual cost

Chubb

$943

Franklin Mutual Insurance

$1,033

Preferred Mutual Insurance

$1,081

Cumberland Mutual

$1,141

NJM

$1,245

State Farm

$1,259

Selective Insurance

$1,403

USAA

$1,564

UPC Insurance

$1,599

The Philadelphia Contributionship

$1,744

National General

$2,025

Narragansett Bay

$2,459

Farmers

$3,035

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How to get homeowners insurance quotes in Newark

Now that you're familiar with the best and most affordable insurance companies in Newark, it's time to start shopping for homeowners insurance. Here are some things you should keep in mind as you compare home insurance quotes in Newark.

5 steps to buying homeowners insurance in Newark, NJ

  1. Shop with an independent insurance marketplace like Policygenius. Our team of licensed insurance experts are at the ready to help you figure out how much coverage you need and what company offers it at the best price — all for free with no impact to your credit score.

  2. Consider purchasing flood insurance. Did you know standard home insurance policies don't cover flooding? Homeowners in the Garden State are at high risk of flood damage, so you’ll want to purchase flood insurance in New Jersey to make sure you’re fully protected. A Policygenius agent can help you do this, too.

  3. Compare quotes. Once you’ve identified your coverage needs, a Policygenius agent will send over quotes from top companies so you can review your options.

  4. Figure out how high of a deductible you can afford. A higher deductible means you’ll pay a lower home insurance premium, but it also means you'll have pay more out of pocket on each claim.

  5. Choose your policy, sign it, and pay your first premium. Once you choose a policy, all you need to do is sign on the dotted line and pay your first premium. We’ll cancel your old policy on your behalf if it hasn't expired yet.

Compare home insurance rates in Newark

Frequently asked questions

Is home insurance mandatory in Newark?

Home insurance isn’t required in Newark unless you financed your home with a loan or mortgage. Mortgage lenders require home insurance to protect their investment against catastrophic losses. Even if you don’t have a mortgage, having home insurance is the best way to protect your assets against weather-related disasters like Hurricane Sandy.

What is the average home insurance cost in Newark?

The average home insurance rate in Newark is $1,032 a year or $86 a month. That’s about $150 more per year than the New Jersey statewide average.

Does Newark offer flood insurance?

Flood insurance is offered in Newark through insurers taking part in FEMA’s National Flood Insurance Program, as well as some independent insurance companies. Consider asking a Policygenius agent about getting this valuable coverage in addition to homeowners insurance.

Author

Pat Howard is a licensed insurance expert and managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.

Editor

Jennifer Gimbel is a senior managing editor at Policygenius, where she oversees all of our insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

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