Renters insurance is not state-mandated in New Jersey, but it’s not uncommon for landlords to include the requirement in a lease agreement. This type of policy belongs to the renter and provides financial protection against the loss of belongings due to any of the named perils within the policy, such as theft or fire. Although your landlord should also have insurance for the property, called landlord insurance, that type of policy only protects the property itself (known as the “structure” in insurance terms). Carrying your own insurance ensures you have coverage to replace your personal property after a covered event. Bankrate reviewed and ranked several local carriers to help you find the best renters insurance in New Jersey for your needs.
Best renters insurance companies in New Jersey
When selecting the best insurance providers for renters in New Jersey, we compared pricing, customer satisfaction scores from the 2024 J.D. Power Home Insurance Study and AM Best financial strength ratings. AM Best financial strength ratings indicate a company’s historical ability to pay claims, which could be a helpful indicator of what to expect for future claims. The following companies are some of the top companies offering a renters insurance policy for New Jersey residents.
| Insurance company | Best for | J.D. Power score | AM Best score |
|---|---|---|---|
| Allstate | Budget-friendly options | 639/1,000 | A+ (Superior) |
| Lemonade | Digital experience | 682/1,000 | Not scored |
| Liberty Mutual | Discount opportunities | 625/1,000 | A (Excellent) |
| State Farm | Flexible customer service | 679/1,000 | A++ (Superior) |
| USAA* | Military-focused coverage | 724/1,000 | A++ (Superior) |
*Not officially ranked with J.D. Power due to eligibility restrictions
Allstate
Best for: Budget-friendly options
Allstate offers a renters policy covering both damage to your personal property due to covered events and injury if you have a guest visiting your property. Additionally, if your home becomes uninhabitable due to a covered loss, the policy offers additional living expenses coverage to help you during your temporary relocation. The policy can be managed either through speaking with customer service or a local agent, online or through the app, making policy management as convenient as possible.
Standout features:
- Discount for bundling with your auto policy with renters policies.
- Renters insurance starts with rates as low as $4 per month.
Learn more: Allstate Insurance review
Lemonade
Best for: Digital experience
Lemonade advertises some of the cheapest rates. While its newer status means it doesn’t have an AM Best rating yet, the company received the third-highest customer satisfaction rating in the renters insurance segment of J.D. Power’s 2024 U.S. Home Insurance Study. Lemonade features a robust app, through which you can purchase renters insurance in 90 seconds, according to the company. It is a peer-to-peer insurance provider, meaning premiums go into a collective pool and Lemonade uses money from that pool to pay claims for policyholders who experience covered losses. Lemonade also donates a portion of its profits to charities through its Giveback program.
Standout features:
- All-digital experience, making it easy for those who prefer to manage a policy on their own.
- Money from unused premiums is donated to charities. Lemonade has given back over $12 million through this program since its start.
Learn more: Lemonade Insurance review
Liberty Mutual
Best for: Discount opportunities
Liberty Mutual offers renters insurance and a wide range of other insurance products, as well as several discount opportunities. The company offers standard renters insurance coverage options and several endorsements. Customers can choose between ACV and RCV policies and added coverage options for personal belongings. Policyholders can manage their coverage digitally through the company’s website or app or may utilize one of the carrier’s local agencies to communicate in person with an agent. However, Liberty Mutual ranked toward the bottom of J.D. Power’s customer satisfaction studies on renters and homeowners insurance, so would-be customers may benefit from asking current customers about their experience with the company.
Standout features:
- Maintains over 200 local agencies throughout the U.S.
- Offers a variety of discounts and endorsements in many states.
Learn more: Liberty Mutual Insurance review
State Farm
Best for: Flexible customer service
State Farm has been in the business of insurance for over 100 years. With State Farm, you can include inflation protection on your renters insurance policy, which increases your coverage limits to match higher costs of living and inflation. You can easily receive a quote and purchase online, but New Jersey has a plethora of local agents if you prefer to handle your insurance in person. If you combine your auto insurance with State Farm renters insurance, you could save on both policies. The company also scored well on customer satisfaction with J.D. Power, earning a fourth-place position and coming in well above the industry average.
Standout features:
- Inflation coverage is included, which automatically increases coverage amounts each year based on rising cost of living expenses.
- You could bundle your renters insurance with other policies to earn a bundling discount.
Learn more: State Farm Insurance review
USAA
Best for: Military-focused coverage
USAA is the highest-scoring provider in the J.D. Power customer satisfaction study on renters coverage but does not qualify for official ranking due to its eligibility requirements. USAA solely offers its long list of insurance and banking products to active-duty military, veterans and their qualifying family members. USAA renters insurance includes earthquake and flood coverage, which is rare without an added premium. You can also purchase replacement cost coverage on your belongings to further build out your policy. If you live on base, in military dorms or in barracks, you can save up to 28 percent on the cost of renters insurance with USAA.
Standout features:
- A standard renters insurance policy through USAA includes flood coverage and earthquake coverage.
- Your personal property is covered through overseas coverage if you are deployed or move abroad.
Learn more: USAA Insurance review
Average price of New Jersey renters insurance
As of the most recent data available, the average cost for renters insurance is $170 per year. This is far cheaper than the average cost of homeowners insurance nationally, which is $2,466 per year for $300,000 in dwelling coverage as of July 2025.
According to the Insurance Information Institute (Tripe-I), the average renters insurance quote in New Jersey was $151 annually in 2021 (the most recent year for which data is available). This figure may change depending on where you live in the Garden State. For example, renters in Newark may pay slightly more than a renter in a small suburb.
New Jersey ranks 15th among U.S. states in terms of the percentage of its renters spending 30 percent or more of their income on rent. However, New Jersey also has a higher percentage of renters overall compared to more than half the states in the U.S.
Renters insurance experience from real New Jersey renters
Reddit’s discussion forums dedicated to renters in New Jersey reveal that landlords in the Garden State are increasingly mandating renters insurance for new leases. Customers largely share that the coverage is relatively affordable and worth having in case of theft or an accident on the property.
*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.
Renters insurance coverage options in New Jersey
Similar to homeowners insurance, renters insurance includes three key types of standard coverage plus custom add-ons. Unlike homeowner’s insurance, renters insurance does not cover the structure or dwelling. Renters insurance is thus protection for your person and your belongings. The typical categories of standard renters insurance are:
- Personal liability coverage: This includes bodily injury or property damage to anyone visiting the property you are deemed responsible for. For instance, if your dog bites someone, this type of coverage could kick in and cover legal and medical costs.
- Personal property: The part of renters insurance protects items like your laptop, clothing and furniture. Your coverage may also extend to personal property that is kept elsewhere, such as a storage unit. Personal property coverage typically extends to guests visiting your home, too.
- Additional living expenses: This is another important component of a renters insurance policy. It provides coverage if you have to move out of your dwelling temporarily due to a covered event.
Add-ons are another way to personalize your renters insurance policy even further and provide added coverage for a nominal cost. Examples of add-ons include identity theft coverage, which provides reimbursement for any expenses associated with a stolen identity, such as credit monitoring services and certain legal fees. Another option to consider is high-value items coverage, which provides higher coverage limits for valuables such as jewelry, art or antiques.
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