Best cheap homeowners insurance in Brooklyn
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Brooklyn is one of several New York boroughs where home values have skyrocketed, with the current median sales price being $888,000. Home insurance rates in Brooklyn average $1,656 per year for $250,000 in dwelling coverage, which is well above the current national average of $1,383 per year. However, if your home is close in value to the median of $888,000, your insurance bill is likely to be much higher.
Homeowners could benefit from finding the best cheap homeowners insurance companies in Brooklyn, not only to find more affordable rates, but also to increase financial protection in the case of theft or damage to the home. Bankrate gathered data on Brooklyn home insurance companies to compare rates and other factors of importance and found NYCM, State Farm and Nationwide are all standout options.
Best cheap home insurance companies in Brooklyn
NYCM, State Farm and Nationwide offer the cheapest rates in Brooklyn, based on data provided by Quadrant Information Services. Bankrate also reviewed other information regarding home insurance providers, which might be important to a homeowner, such as third-party ratings from J.D Power and unique policy coverage options. All of this information was analyzed and each carrier was assigned a Bankrate Score, based on a five-point scale, to help you assess if a carrier could be the right fit.
|Home insurance company||Bankrate Score||Average annual premium for $250K dwelling coverage||J.D. Power score|
New York Central Mutual, or NYCM, not only offers the cheapest homeowners insurance rates according to the data, but also offers a few unique add-ons for policies. If homeowners want to customize their coverage further, they can add extras like equipment and appliance breakdown coverage, valued possession coverage and utility line expense coverage. In addition to cheap rates, NYCM offers several ways to save, such as with a green discount or a discount for those working from home. NYCM does offer a mobile app for added convenience, but the app is mainly tailored to auto insurance policyholders.
Learn more: NYCM Insurance review
State Farm is one of the top home insurance providers in the country and offers Brooklyn homeowners some of the lowest rates among the companies we reviewed — well below the area’s average. State Farm policyholders may obtain even cheaper rates by leveraging discounts, although the amount of discounts offered are limited compared to other homeowners insurance providers in Brooklyn. You may see reductions based on the type of roof you have, whether you have a home security system installed or if you bundle other coverages such as auto with State Farm.
State Farm also has a strong local presence. While most carriers have turned to an online-only business model, you will find there are 25 State Farm agents in Brooklyn who can help homeowners conduct business face-to-face.
Learn More: State Farm Insurance review
Nationwide is one of the cheapest carriers on our list, with average annual rates of $1,054. Customers can enhance their plan with optional add-ons such as earthquake, identity theft and water backup. Nationwide’s coverages also include Brand New Belongings, which is the insurer’s name for replacement cost coverage. If your items are lost or damaged, they can be replaced with a new version without depreciation for the item’s age and condition being factored into the payout.
Nationwide will help you save even more money on home insurance if you update your older Brooklyn home or brownstone’s electrical wiring, plumbing, HVAC or other major systems. Modernizing your home reduces the risk of claims — and Nationwide offers an incentive for this decision. Although you can not complete a quote online, once you do select coverage, you can manage your policy online.
Learn more: Nationwide Insurance review
American Family, or AmFam, offers the standard homeowners policy options you would expect as well as a variety of policy customization options. Coverages such as home daycare, senior living and equipment breakdown are a few examples of ways to personalize a policy. Discounts are plentiful too, which makes it easier to find cheap homeowners insurance in Brooklyn. You can get a quote and manage a policy online or work with a local agent. Customers should note that the app is limited in what it offers for homeowners.
Learn more: American Family Insurance review
USAA consistently tops the J.D. Power home insurance study every year for its high level of customer service but is not technically rank-eligible due to limited membership availability. USAA membership is free, but only active or former military personnel and their immediate family members can qualify for eligibility.
For those who do qualify, USAA offers affordable, standard homeowners coverage, with extra perks including replacement value coverage available at no additional charge. These homeowners insurance policies are also written with unpredictable military life factors in mind.
Learn more: USAA Insurance review
Home insurance coverage options in Brooklyn
The following suggested coverages for Brooklyn homeowners are not required for all circumstances but do provide a level of financial protection that could be valuable.
- Scheduled personal property: Brooklyn has a slightly lower incidence of property crime than New York State as a whole with 1 in 72 residents the victim of one. Scheduled personal property insures higher-value items such as jewelry, electronics and artwork — items that are typically stolen first — for their full value. Otherwise, your standard home insurance policy may cap losses for less than the items are worth.
- Flood insurance: Homeowners may be surprised to find out that water damage from flooding is typically not covered with a standard home insurance policy. For Brooklyn homeowners, this is important to understand because flooding is becoming more common in the area. Flood insurance typically can be purchased from a private company or through the National Flood Insurance Program (NFIP), a government program.
- Replacement cost: Most home policies pay out cash value, which is the current value of the item that was lost or damaged due to a covered peril, with depreciation subtracted for age and condition. Replacement cost is generally considered a better option if you want the payout to reflect the cost to replace belongings or materials with a new version.
Home insurance discounts in Brooklyn
The average cost of home insurance in New York City is higher than the national average — and Brooklyn is no exception. You may be able to save considerably by comparing and choosing a carrier with lower rates, but the savings do not necessarily end there. Most home insurance companies provide discounts to encourage you to pay your bills on time, secure your home or take steps to reduce the risk of claims. Look for the following discounts that could apply to you:
- Protective devices: A home security system, carbon monoxide and smoke detectors, deadbolt locks and water sensors are considered protective devices. Fitting your home with one or several could earn you a discount on home insurance.
- Early signup: Insurance companies do not like to see lapses in coverage. Signing up for automatic renewal or getting a quote and buying coverage in advance could get you a reduction in price.
- Autopay: Scheduling automatic payments could help you save time managing your policy — and earn you a small discount.
- Bundling: Buying vehicle, home and other types of insurance with one company is considered bundling or multi-line coverage. You could earn a significant discount for all insurance products by bundling more than one insurance type with a carrier.
To get cheap homeowners insurance in Brooklyn, you may be able to qualify for more than one discount at a time. For some homeowners, the biggest discount may be achieved in securing your home to receive a protective-devices discount. Bundling insurance coverages for your vehicle, home and property is another way to get significant savings.
Frequently asked questions
The best insurance company for you may be different for your Brooklyn neighbor; it all depends on your needs, home value and other factors unique to your situation. Based on pricing and customer satisfaction, we found the best cheap home insurance companies in Brooklyn to be NYCM, State Farm and Nationwide.
Average home insurance rates in Brooklyn, New York are $1,656 per year for $250,000 in dwelling coverage. However, you could potentially find rates better than the average by shopping around to compare quotes and by taking advantage of carrier-based discounts. If your home value is higher than the amount provided in our annual rate comparison, these savings strategies could still benefit you.
Unlike auto insurance, homeowners insurance is not a legal requirement imposed by any state. However, if you have a mortgage on your home, most lenders require a homeowner to purchase a homeowners insurance policy. The right homeowners insurance policy is a valuable tool, offering financial protection in case your home is damaged or destroyed due to a covered peril. The coverage could prevent you from having to pay thousands of dollars out of pocket when an unfortunate event occurs.
Bankrate utilizes Quadrant Information Services to analyze 2022 current rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Bankrate Scores are calculated on a five-point scale and primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.