Best cheap homeowners insurance in Brooklyn

1
fotog/Getty Images
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our

Brooklyn is one of several New York boroughs where home values have skyrocketed, with the current median sales price being $889,000. The average home insurance Brooklyn NY cost is $1,598 per year for $250,000 in dwelling coverage. However, if your home is close in value to the median of $889,000, your insurance bill is likely to be much higher.

Home insurance rates in Brooklyn, New York are not much more expensive than the nationwide average of $1,312 per year, when compared on the basis of equal dwelling coverage. However, property values certainly affect the price of your home insurance, due to the amount of dwelling coverage you need to financially protect. Add the high incidence of property crime in the area due to theft, vandalism and burglaries and Brooklyn home insurance could be even higher. Because of this, many homeowners could benefit from considering which are the best cheap homeowners insurance companies in the city.

Bankrate gathered rate data on Brooklyn home insurance companies to give you an idea of how much you can expect to pay for homeowners insurance. To narrow the list down to five of the best insurance companies, we also compared companies on the basis of other factors that are significant to homeowners.

Best cheap home insurance companies in Brooklyn

The following carriers are Bankrate’s cheapest home insurance companies in Brooklyn. Four of the five had cheaper rates than the area average, with the cheapest home insurance company having annual rates that are less than half of Brooklyn’s overall average.

The J.D. Power score is the independent industry rating agency, reflecting scores out of 1,000 points that point to how insurance companies perform regarding claims, communications and policy offerings. We use the score to gauge customer satisfaction, which is an important aspect to consider, in addition to the price of premiums.

Home insurance company Average annual premium for $250k dwelling coverage J.D. Power score
State Farm $756 829/1,000
Nationwide $1,043 808/1,000
USAA $1,139 889/1,000
Travelers $1,467 803/1,000
Allstate $1,993 829/1,000

State Farm

State Farm is one of the top home insurance providers in the country and offers Brooklyn homeowners 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. You may see reductions based on the type of roof you have, whether you have a home security system installed or 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 23 State Farm agents in Brooklyn who can help homeowners conduct business face-to-face if that is a preference.

Learn More: State Farm Insurance review

Nationwide

Nationwide is Brooklyn’s second-cheapest carrier on our list, with annual rates of $1,043. That is less than $90 per month to insure your Brooklyn home, coop or loft, with a dwelling coverage amount of $250,000. Nationwide’s coverages 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.

Learn more: Nationwide Insurance review

USAA

USAA consistently tops the J.D. Power home insurance study every year for its high level of customer service but is not technically rank-ineligible 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

Travelers

Travelers Insurance rates are about average compared to the overall Brooklyn area. However, the carrier includes standard options that may come as an additional cost with other home insurance companies. For example, the provider includes work-related equipment coverage as part of a standard home insurance policy. Brooklyn-based small business owners and remote workers may have additional peace of mind having their computers, printers and work-related machinery and tools financially protected, even at home.

Besides standard home coverage, you can add specialty insurance to further protect your home and yourself financially. Some of the special coverages you can add include jewelry riders for higher-value items, water backup, replacement cost and green rebuilding coverage.

Learn more: Travelers Insurance review

Allstate

Allstate has the highest rates for home insurance in Brooklyn among the cheapest providers, but is still more affordable than the bulk of carriers Bankrate reviewed in this city, based on quoted annual premiums. For homeowners who prefer personal service over finding the cheapest home insurance company, Allstate may be on the shortlist.

Local expertise can be invaluable, especially when trying to determine if you have enough coverage based on the market’s changes in home value. Allstate has the biggest representation of insurance agents in Brooklyn, with 63 agents/offices in the borough. They are available to help you get a quote in person (if you would rather avoid the online quoting tool), can answer questions about your policy and will provide assistance with filing a claim, as well as tracking it.

Learn more: Allstate 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 higher-than-average incidence of property crime, with 1 in 65 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 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 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 cost of home insurance in New York is not the most affordable compared to the rest of the country — 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

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 home insurance companies in Brooklyn to be State Farm, USAA, Nationwide, Travelers and Allstate.

How much does home insurance in Brooklyn cost?

Average home insurance rates in Brooklyn, New York are $1,598 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.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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.

Written by
Cynthia Paez Bowman
Personal Finance Contributor
Cynthia Paez Bowman is a finance and business journalist who has been featured in Bankrate, Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and TheSimpleDollar.com. She regularly travels to Africa and the Middle East to consult with women’s NGOs about small business development and works with select startups and women-owned businesses to provide growth and visibility.
Edited by
Insurance Editor