Best cheap homeowners insurance in Brooklyn

Brooklyn is one of several New York boroughs where home values have skyrocketed, with a current median sales price of $749,000. Home insurance rates in Brooklyn average $1,656 per year for $250,000 in dwelling coverage, well above the 2022 national average of $1,383 per year. However, if your home is close to the median of $749,000, your insurance bill is likely to be much higher.

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 some of the cheapest average rates in Brooklyn, based on data provided by Quadrant Information Services. However, Bankrate understands that finding the right home insurance company is usually about more than just price. Our insurance editorial team reviewed coverage options, discounts, financial strength ratings from AM Best,  customer satisfaction scores from J.D Power and digital tools to narrow down the best home insurance companies. All of this information was used to assign each carrier a Bankrate Score based on a 5-point scale.

*USAA is not officially ranked by J.D. Power due to eligibility restrictions

NYCM

New York Central Mutual, or NYCM, not only offers some of the cheapest average homeowners insurance rates in Brooklyn, but it also offers a few unique add-ons for policies. If homeowners want to customize their coverage further, they may be able to purchase endorsements for equipment and appliance breakdown coverage, valued possession coverage and utility line expense coverage. In addition to cheap rates, NYCM offers fairly unique home insurance discounts with potential savings for homeowners who work from home, retired homeowners and renovated homes. NYCM is not scored by J.D. Power for customer satisfaction, likely because it is a regional carrier. You may want to speak with existing policyholders about their customer service experience.

Learn more: NYCM Insurance review

State Farm

State Farm is the largest home insurance company in the country by market share. In addition to low average rates in Brooklyn, State Farm policyholders may save even more by leveraging discounts for bundling and updated roofs. State Farm came in above the industry average in J.D. Power’s Home Insurance Study, which may be in part due to its local agent availability and robust digital tools.

Learn More: State Farm Insurance review

Nationwide

Nationwide may be a great choice for homeowners looking to build a robust policy with unique endorsements. Policyholders may be able to enhance their coverage with optional add-ons such Better Roof Replacement and Valuables Plus coverage for high-value items. Brooklyn homeowners may be able to save on coverage with Nationwide with potential discounts for home renovations, smart homes, a new home purchase and more. Nationwide offers some financial services for homeowners through a partnership with Axos Bank, but its J.D. Power score is slightly below average, which may be a concern for homeowners who value service.

Learn more: Nationwide Insurance review

American Family

American Family, or AmFam, offers the standard homeowners policy options you would expect, as well as a variety of policy customization options. Endorsement options include hidden water damage protection and equipment breakdown coverage. Discounts for renovated homes, customer loyalty and generational customers may help Brooklyn homeowners save on their premiums. Homeowners who value service may be particularly interested in AmFam as the carrier earned the third-highest score in the J.D. Power Home Insurance Study.

Learn more: American Family Insurance review

USAA

USAA consistently scores highly with J.D. Power for customer satisfaction, but it is not technically rank-eligible as it only extends coverage to active or former military personnel and their immediate family members. For those who do qualify, USAA offers potential add-ons for home-sharing coverage and flood insurance. Although USAA doesn’t offer as many discounts as some competitors, it does extend potential savings for protective devices, customer loyalty and home monitoring devices.

Learn more: USAA Insurance review

Home insurance coverage options in Brooklyn

Standard home insurance coverage types may not offer the degree of financial protection you want for your home. Endorsements and standalone policies may help you get the coverage you need. Some common add-ons you might consider include:

• Scheduled personal property: Scheduled personal property insures higher-value items such as jewelry, electronics and artwork. Without this endorsement, 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 may be 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.
• Water backup coverage: A standard home insurance policy also doesn’t cover damage to your belongings or dwelling caused by a water or sewer backup. To financially protect yourself against this type of damage, you’ll need to purchase water or sewer backup insurance. This coverage generally covers sudden and accidental damage to sewer lines on your property and may help you repair or replace any damage to your home and personal property.

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. You could look for the following common discounts that might apply to you:

• Protective devices: A home security system, carbon monoxide and smoke detectors, deadbolt locks and water sensors may be considered protective devices. Fitting your home with one or several might earn you a discount on home insurance.
• Early signup: Signing up for automatic renewal or getting a quote and buying coverage in advance may reduce your home insurance premium.
• Autopay: Scheduling automatic payments could help you save time managing your policy — and may earn you a small discount.
• Bundling: Buying vehicle, home and other types of insurance with one company may earn you a significant discount on one or both policies.

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 by remaining claims-free. Bundling insurance coverage for your vehicle and home may be another way to get significant savings.

Frequently asked questions

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    What is the best home insurance company?

    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 include NYCM, State Farm and Nationwide.
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    How much does home insurance in Brooklyn cost?

    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 might still benefit you.
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    Is homeowners insurance required in New York?

    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 will require you to purchase a homeowners insurance policy. Even if you own your home outright, most insurance professionals recommend having coverage in place to avoid significant out-of-pocket expenses in the event of a covered incident.
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    Why is Brooklyn home insurance so expensive?

    The price of home insurance in an area may be influenced by many factors, including regional weather patterns, crime rates and fire station availability. Personal factors, like your home’s value, characteristics and specific location, may also impact rates. As part of New York City, Brooklyn may experience higher vandalism and burglary rates than other areas of the U.S. New York is also susceptible to winter storms and hurricanes which may drive up average rates.

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    Methodology

    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.

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    Bankrate Score

    Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

    Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

    • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
    • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
    • Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.