Storm of Rate Hikes: Over 50 N.J. Insurers Just Got Green Light

🌀 Insurance storm brewing: Nearly half of N.J. homeowners insurers seek rate hikes in 2025
📈 Dozens of companies approved for major increases — some over 20%
🏠 Homeowners urged to shop around as more rate hikes loom

New Jersey homeowners are facing a harsh new reality as nearly half of the state’s 127 homeowners insurance companies have filed for rate increases in 2025 — with more than 50 already receiving state approval.

It is yet another blow to the affordability in the Garden State and comes just as New Jersey will elect a new governor in November.

A new analysis by NJ.com found the steepest approved increase so far was granted to Founders Insurance, which secured a staggering 23.6% hike — the highest green-lit rate. Farmers Property and Casualty wasn’t far behind, with a 21.6% increase approved after it initially requested nearly 31%. Meanwhile, St. Paul Protective, a subsidiary of Travelers, asked for a massive 40% hike but received a scaled-down 19.8% bump.

None of the insurers responded to requests for comment from NJ.com reporters.

💲 Why Are Insurance Rates Rising So Fast in N.J.?

Inflation, storms and soaring costs drive up premiums

Experts cite a convergence of factors fueling the rate hikes: inflation, persistent supply chain issues, skyrocketing home replacement values, increased building costs, and the growing frequency of extreme weather events driven by climate change.

The New Jersey Department of Banking and Insurance (DOBI) confirms that rate requests are legal under state law — as long as they are “reasonable, adequate and not unfairly discriminatory.”

↗ More Rate Hikes on the Horizon

At least two dozen more companies seeking increases

The pressure on homeowners is far from over. Another 24 insurance companies have pending rate hike requests, with seven of those seeking double-digit increases. And with climate risks mounting, regulators expect more filings in the coming months.

❓ What Can Homeowners Do? Tips for shopping smarter and saving money

Consumer advocates urge homeowners not to panic — but to act. Start by reviewing your current policy, then get quotes for identical coverage from several providers. Ask about discounts, bundling, and home upgrades that could lower your premium.

The DOBI’s Consumer Insurance Guide also offers help for residents navigating the increasingly pricey market.

While some savings can be found, many New Jersey 101.5 callers have told us they did shop around, but ultimately found rates were largely similar.

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