Homeowners insurance in New Jersey

The home insurance market in New Jersey

New Jerseyans paid $4.62 billion in homeowners premiums in 2025, according to NAIC market share data. These are the 10 largest insurance groups by 2025 direct premiums written:

Unlike most states, New Jersey's largest home insurer is not State Farm. NJM, a New Jersey insurer that ranks only 39th nationally, leads with 13.5%, followed closely by State Farm and Allstate. Plymouth Rock's Palisades Group ranks 72nd nationally but ninth here, and Chubb, which concentrates on high-value homes, holds 4.9%. The 10 largest groups write about 69% of premiums.

What drives home insurance costs in New Jersey

The NAIC put New Jersey's average HO-3 premium at $1,551 for 2023, a little below the countrywide $1,737. The statewide average hides a sharp split between inland suburbs and the Shore, where hurricane deductibles, wind rating and flood exposure all pile up.

Tropical systems and the rain they bring are the defining losses. FEMA declared major disasters for Hurricane Sandy (October 2012), Tropical Storm Isaias (August 2020), the remnants of Hurricane Ida (September 2021) and severe storms and flooding in July 2023. Sandy's worst damage came from storm surge along the coast; Ida's remnants brought flash flooding to inland neighborhoods. Neither kind of water is covered by a homeowners policy.

Availability has tightened too. A U.S. Senate Budget Committee staff report (December 2024), using data from 23 large insurers, found New Jersey's nonrenewal rate rose 70% from 2018 to 2023, among the 10 fastest increases in the country. Rate filings run through DOBI, which has an expedited review path for homeowners rate changes of no more than 5% overall (N.J.A.C. 11:2-42).

Deductibles and coverage rules to know

New Jersey regulates hurricane deductibles by rule. Insurers and the FAIR Plan may use mandatory hurricane deductibles of up to 5% and optional ones of up to 10%, in coastal ZIP codes listed in the rule or elsewhere with DOBI approval (N.J.A.C. 11:2-42.9). All must use uniform policy language. According to DOBI, a hurricane deductible applies only to losses during an event the National Weather Service designates a hurricane, and only if sustained winds of 74 mph are measured somewhere in New Jersey. A tropical storm or nor'easter does not trigger it.

Insurers must send a notice with every new policy and renewal that carries a hurricane deductible, say whether it is mandatory or optional, show a sample claim settlement, and explain any way to lower or remove it, such as shutters or other mitigation (N.J.A.C. 11:2-42.8). Separately, you can choose an optional windstorm or hail deductible, as a flat amount or up to 10% of Coverage A, for a lower premium. DOBI's example: a $500,000 home with a 5% hurricane deductible pays the first $25,000. Run your numbers in the hurricane and percentage deductible calculator, and see hurricane and named-storm deductibles explained.

Flood and other gaps

Flood is New Jersey's biggest coverage gap. FEMA counted 191,742 NFIP policies in force as of September 30, 2026, the fourth-most of any state by our count, but down 6,373 in a year. New NFIP policies usually take 30 days to start, and DOBI warns that you generally cannot buy or upgrade coverage once a hurricane is approaching.

New Jersey now makes flood risk part of the sale. Under P.L. 2023, c. 93 (approved July 3, 2023), the seller's property condition disclosure must say whether the home is in a FEMA special or moderate flood hazard area, whether federal law requires flood insurance, whether past owners got federal flood aid, whether there is a flood policy, any flood claims and amounts, and how many times it has flooded. An existing elevation certificate must be shared with the buyer. Landlords must give tenants similar flood notices. See insurance cost disclosure in home sales and Flood zones and FEMA flood maps explained.

If you can't find coverage

The New Jersey Insurance Underwriting Association, created in 1968 and known as the FAIR Plan, insures property for owners who cannot get coverage from admitted insurers or the surplus lines market. Every admitted property insurer writing in New Jersey is a member. Per its consumer guide:

• Limits: up to $500,000 on a 1- to 4-family dwelling and $750,000 per location including contents.
• Coverage: actual cash value only, for fire, lightning, wind, hail, smoke, explosion, vandalism and similar perils. No water damage, flood or liability coverage; DOBI says theft is available only by endorsement.
• Coast: a 2% hurricane deductible applies more than a mile from the ocean in the first coastal group of ZIP codes, 3% within a mile, and 4% in the second group.
• No automatic renewal: you must submit a new application and full premium each year.
• Storm freeze: no new policies or coverage increases while a hurricane watch or warning covers any part of the state, until 24 hours after it ends.

The plan is small: 6,629 policies at the end of 2023. DOBI approved a 4.1% overall rate increase effective May 1, 2026. DOBI's advice is to consider the FAIR Plan only if you cannot get insurance anywhere else; an independent agent or surplus lines home insurance when standard carriers say no usually offers broader coverage. See FAIR plans explained: the insurer of last resort for homes.

Claims rules and deadlines

New Jersey's unfair claims rule (N.J.A.C. 11:2-17) requires insurers to acknowledge a claim and begin investigating within 10 working days. The maximum payment period for first-party property claims is 30 calendar days after the insurer receives properly executed proofs of loss, unless it has a clear justification; if it cannot settle in time, it must explain why in writing and update you every 45 days. Agreed settlements must be paid within 10 working days.

Notice rules (N.J.A.C. 11:1-20):

• Nonrenewal: written notice no more than 120 and no fewer than 30 days before expiration, with the specific reason and its factual basis, sent by certified mail or first-class mail with proof of mailing.
• Cancellation: the same 30-to-120-day window, except 10 days for nonpayment or moral hazard. In the first 60 days of a new policy, an insurer may cancel for any lawful reason on 10 days' notice.
• Renewal changes: premium and term changes need the same 30-to-120-day notice. If the insurer fails to give proper notice, you may keep the expiring policy on its terms.
• Written guidelines: an insurer may not cancel or nonrenew for an arbitrary, capricious or unfairly discriminatory reason, and must give you its written guidelines on request.

The standard fire policy prescribed by N.J.S.A. 17:36-5.20 requires suit "within twelve months next after inception of the loss," and the suit clause in a New Jersey homeowners policy typically follows it; check the "Suit Against Us" condition in yours. In Peloso v. Hartford Fire Insurance (1970), the New Jersey Supreme Court held that the period is paused from the time you report the loss until the insurer formally denies it (56 N.J. 514). Do not lean on the pause; see deadlines to sue over a home insurance claim.

Discounts and mitigation programs

We found no New Jersey state grant program for home hardening. Mitigation pays mainly through your hurricane deductible: insurers that let you lower or remove it for shutters or similar measures must say how in the renewal notice. Ask your agent which features your insurer credits, and keep invoices and photos.

Where to get help

DOBI's Consumer Inquiry and Response Center, which includes the Office of the Insurance Ombudsman, takes questions and complaints at 609-292-7272 or 800-446-7467 (8:30 a.m. to 5 p.m. weekdays), through the online complaint form, by fax at 609-777-0508, or by mail to NJDOBI, PO Box 471, Trenton, NJ 08625-0471. Every nonrenewal or cancellation notice, except one for nonpayment, must prominently tell you that you can complain to DOBI. See how to file a complaint with your state insurance department and the nonrenewal action plan. Neighbors New York, Pennsylvania and Delaware share the same storms.