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Checked against official sources · Last reviewed October 13, 2026

What homeowners insurance costs in New Jersey: average premium, 2023 $1,551 a year in New Jersey vs. $1,737 countrywide · 26th highest of 51 · All states (HO-3 policies; NAIC)

The New Jersey market right now

New Jersey's insurance regulator is the Department of Banking and Insurance (DOBI). In its June 8, 2026 hurricane-season release, Acting Commissioner Susan Ochs said: "As New Jersey continues to see more extreme weather events, it's important to take a moment each year to review your homeowners insurance policy." The department urges you to check any deductibles in your policy before storms arrive.

The state's last-resort plan is small. The New Jersey FAIR Plan's most recent posted annual report says it "ended the year with 6,629 total policies" at the end of 2023, with written premium of $5,050,000. Its rates have gone up twice recently, with approval from DOBI: an overall 5.7% increase effective June 1, 2024 for new business (August 1, 2024 for renewals), which the plan said was "the first increase since January 2020," and an overall 4.1% increase effective May 1, 2026 for new and renewal business.

When a company stops renewing a whole group of homeowners policies, DOBI's sample notice for that case says the company "has submitted a block nonrenewal plan" to the department "as required by N.J.A.C. 11:1-22." If a company leaves the homeowners market altogether, its notice refers to an "informational withdrawal filing" with the department. Under DOBI's rule, a block nonrenewal plan must be filed at least 30 days before any nonrenewal notice goes out and must provide "a minimum of 60 days notice" to each policyholder. Both sample notices tell you the nonrenewal "is based on a business decision by the company and is not intended to reflect negatively on your insurability." [8][9][10][11][12][13][14]

If your insurer cancels or won't renew

New Jersey's cancellation and nonrenewal rules (N.J.A.C. 11:1-20) apply to "all policies of homeowners insurance." Here is what those rules and DOBI's consumer guide, Insuring Your Home, say:

- Nonrenewal: DOBI's guide says the company "must provide you with written notice explaining the reason for nonrenewal at least 30 days before the expiration date." The rule sets the window: a nonrenewal notice is valid only if mailed or delivered "not more than 120 days nor less than 30 days prior to the expiration of the policy." If the insurer doesn't send a proper notice, you can keep the expiring policy "at the same terms and premium" until it does. - Mid-term cancellation: except for nonpayment or "moral hazard" (roughly, a risk that the insured will destroy the property for the insurance money), a cancellation notice must be mailed or delivered 30 to 120 days before the cancellation date. For nonpayment, the insurer must send notice of the amount due at least 10 days before the cancellation date, and paying before the date in the notice stops the cancellation. DOBI warns: "There is no grace period for paying for your insurance." - New policies (first 60 days): DOBI's guide says the insurer can cancel "any time within the first 60 days for any reason not otherwise prohibited by law," and the cancellation "is not effective until at least 10 days after the insurance company sends you written notice." The rule also allows cancelling a policy in effect less than 60 days, but says such cancellations are "subject to the remaining provisions of this subchapter," which include its notice rules. If you get one, confirm the notice period with DOBI. - What the notice must say: it must give the reason and specify "in detail the factual basis upon which the insurer relies." Except for nonpayment, it must tell you, in boldface or similar type, that you may file a written complaint with DOBI. It must be sent by certified mail, or by first-class mail with a post office proof of mailing. - Allowed reasons: an insurer may not cancel or nonrenew based on guidelines that are "arbitrary, capricious or unfairly discriminatory." The rule's approved reasons include nonpayment, moral hazard, material misrepresentation, an increased hazard or material change in the risk, and failing to fix a code violation that substantially increases a hazard within 60 days of written notice. A guideline based on your loss history can be used only to nonrenew, not to cancel. Your policy must say that the insurer's written guidelines "will be furnished to the insured" on written request.

Weather claims. State law says no insurer "shall cancel or non-renew an insurance policy covering an owner occupied one-to-four family dwelling solely because of claims or losses due to weather-related damage" or a crime by someone who doesn't live there. The exception: the claim "identifies or confirms an increase in hazard, a material change in the risk assumed or a breach of contractual duties." The insurer may also offer to continue coverage "on different terms and conditions" if you don't make needed repairs or take other steps to reduce the risk.

Questions aren't claims. Another law says an insured's inquiry about the policy, or about coverage for a particular loss, can't be counted as a claim "for the purpose of determining adverse claims experience."

What to do. DOBI's guide says your agent "may be able to help you obtain replacement coverage," and that "It is important to act quickly so you do not face a lapse in coverage." If you think the notice or reason is wrong, contact DOBI (see "Where to get help").

Bills to watch. Assembly Bill A1143 and Senate Bill S3644, introduced in January and February 2026, would require cancellation and nonrenewal notices for auto and homeowners policies to be sent by certified mail, return receipt requested. As of Oct. 13, 2026, both had only been introduced and referred to committee. (Today the rule allows certified mail or first-class mail with a post office proof of mailing.) [1][2][5][15][16][17]

Hurricane deductibles

Many New Jersey homeowners policies have a separate hurricane deductible. DOBI's guide says it applies only to losses during an event "designated as a hurricane by the National Weather Service, and only if sustained wind speeds of 74 mph have been measured anywhere in New Jersey." A common type is a percentage of your dwelling coverage (Coverage A): "These percentages can be 1 percent, 2 percent, 5 percent, or even 10 percent." DOBI's example: "a $200,000 home with a 2 percent hurricane deductible would have a $4,000 deductible."

State law requires uniform policy wording for hurricane deductibles, set by DOBI rule (N.J.A.C. 11:2-42.7 and its Exhibit D). Under that wording, the deductible applies to a hurricane named by the National Weather Service from which sustained winds of 74 mph or more "have been measured in New Jersey," whether or not those winds reach your home. It covers the period from 12 hours before such winds are first measured in New Jersey until 12 hours after they were last measured. The FAIR Plan's own policyholder notice uses the same 12-hour window. In 2011, DOBI told insurers that because the National Weather Service did not report winds in New Jersey meeting those criteria during Hurricane Irene, "no mandatory or optional hurricane deductible should be applied" to Irene claims.

Other points from DOBI's guide:

- Some policies also let you pick an optional windstorm or hail deductible, "a fixed dollar amount or a percentage of the Coverage A limits up to 10 percent," which lowers your premium. - If you have a hurricane deductible, ask your agent or company whether you "can reduce or eliminate the deductible by making changes that make your property less susceptible to hurricane damage, such as adding hurricane shutters." - "Generally, it is not possible to purchase new homeowners insurance, or to request upgrades to an existing policy, within a specific time period of an approaching hurricane."

By law, homeowners policies must come with a consumer brochure that "explains the insurer's hurricane deductible program, if any," given to you "at least annually at the time of policy renewal." For how the math works, see our hurricane deductible guide. DOBI's rule also requires a hurricane deductible notice with each new policy and each renewal. If the deductible changes at renewal, the notice must say the policy terms have changed, in boldface or a similar way. [1][18][19][20][21][22]

Last resort: the New Jersey FAIR Plan

DOBI says: "In New Jersey, consumers who are unsuccessful in obtaining coverage through a standard company may apply to the New Jersey Insurance Underwriting Association, known as the FAIR Plan." You can apply "directly or through any licensed agent."

What to know first:

- It provides "basic property coverage, but does not provide theft or personal liability coverage." Optional theft coverage has been available as an add-on since 2009. - By law you must show you tried the regular market: the plan issues a policy if you have "made a diligent effort to procure essential property insurance from an authorized insurer in the normal market" and the property is in insurable condition after an inspection. - The law says "neighborhood, area, location, environmental hazards beyond the control of the applicant or ownership of the property shall not be considered" in deciding whether a property is insurable. - Policies run one year. If the plan turns you down, state law lets you appeal to the Commissioner. - DOBI's advice: "Consider the FAIR Plan only if you cannot obtain insurance from any other source."

Limits, coastal deductibles, how to apply and how to pay are on our New Jersey FAIR Plan page. [1][3][6][23]

Discounts for protecting your home

DOBI's guide lists discounts to ask about when you buy a policy, including "Credits for protection devices" such as "smoke detectors, alarm systems and sprinkler systems," multi-policy discounts, nonsmoker discounts and discounts for long-time policyholders. It also says "New homes may qualify for discounts."

DOBI's extreme-weather page says mitigation steps "such as strengthening unreinforced masonry to withstand wind and flooding and installing shutters on every window may help reduce the possible impact of extreme weather on your property." It points readers to the state's NJ Wildfire SMART site for wildfire preparation.

If you are insured through the FAIR Plan in a coastal ZIP code, the plan has its own program for reducing your hurricane deductible after you strengthen your roof and openings; see our New Jersey FAIR Plan page. [1][24][25]

Surplus lines

When no licensed ("admitted") company will write a home, for example one that "has a very high value or is unoccupied, or is located right on the beach," DOBI says "New Jersey law allows some non-admitted insurance companies, called eligible surplus lines insurers, to provide coverage for the risk."

DOBI cautions that surplus lines insurers "are not regulated to the same degree as admitted insurance companies and many insurance laws and regulations do not apply to these companies." Their policies "may offer different coverages and policy limits than found in voluntary policies and rates will usually be higher." DOBI posts its list of eligible surplus lines insurers on its Surplus Lines page. More background is in our surplus lines guide. [1][26]

Flood is a separate policy

DOBI says: "All homeowner's insurance policies exclude water damage caused by flood," and "Homeowners policies do not cover damage from flooding that accompanies a hurricane." The FAIR Plan doesn't cover flood either. DOBI also notes that flood insurance "is not effective until 30 days after it is sold," so don't wait for a storm. For flood zones and flood insurance, see our sister site FloodHawk. [7][24][27]

Where to get help

DOBI's Consumer Inquiry and Response Center takes questions and complaints at (609) 292-7272 or the Consumer Hotline (800) 446-7467, 8:30 a.m. to 5 p.m. Eastern, Monday through Friday. You can file online from the DOBI consumer assistance page, fax (609) 777-0508 or (609) 292-2431, or mail NJDOBI, PO Box 471, Trenton, NJ 08625-0471.

DOBI says formal complaints must be in writing and should include the company or agent name, your policy number, documents that support your position and a short description of the problem. If it applies, include a copy of your declarations page and the nonrenewal notice, premium increase notice or claim denial.

For a claim dispute, DOBI's guide lists options: ask the company's Internal Appeals Panel to review your claim, then appeal to the Office of the Insurance Claims Ombudsman at DOBI; ask for appraisal under your policy; or hire an attorney. DOBI also keeps a list of companies that write homeowners insurance in New Jersey. [1][4][28]

Questions people ask