The average annual rate for homeowners insurance in New York City is $1,721 for a $250K dwelling. Although many NYC residents rent their dwellings, roughly 33% of the city’s eight million residents own their homes, which have a median value of $606,000.
To find the best cheap homeowners insurance in New York City, we looked at multiple factors, including customer satisfaction, the scope of available offerings, discounts, and, of course, price. Although living in NYC isn’t inexpensive, it is possible to find solid coverage options from a range of insurers who will stand by you if you need to make a claim.
Best cheap home insurance companies New York
All five of the companies offering the best cheap home insurance in New York have premium costs that are less than average for the city as determined by 2021 rate data from Quadrant Information Services. We also looked at where they placed with J.D. Power’s 2020 Overall Customer Satisfaction Index Ranking, which are based on the experiences of more than 11,000 homeowners.
|Home insurance company||Average annual premium for $250K liability||J.D. Power customer satisfaction score|
State Farm has been paying out on claims since 1922, and the company does many things well. It has a respectable ranking from J.D. Power, as well as the highest rank possible, A++, from AM Best, which monitors the financial health of insurers. Although State Farm only offers three possible discounts for homeowners, it also has the lowest average rates of any of our chosen companies, meaning you are likely to get solid coverage for a low price.
Nationwide’s coverage options can protect your home against theft, fire, weather damage and other losses. Optional coverages include water backup and flood insurance, which is not part of a basic homeowner policy. Nationwide’s average prices are reasonable, and they offer eight possible discounts that can save you even more, including a claims-free discount and one if you live in a community with security guards, residence cards or key-lock devices.
MetLife recently sold its homeowner insurance division to Farmers Insurance, but current and future policyholders still have coverage options. Both companies have excellent reputations for low-cost, comprehensive coverage and financial stability. Depending on the coverage options you choose, you may be able to replace damaged or destroyed belongings without a deduction for depreciation. The company also includes identity protection services with every policy, which is a nice extra.
USAA is at the top of J.D. Power’s Customer Satisfaction Index, highlighting the company’s well-known focus on meeting the needs of its policyholders swiftly and efficiently. USAA only sells policies to members of the U.S. military, veterans and their families, but if you are in that demographic, it should be your first choice for a quote. USAA policies offer replacement value coverage and special perks for active military — such as full coverage for uniforms. It has discounts for being claim-free, bundling, and for having a security device at your home.
Although Traveler’s average quote for NYC homeowners was the highest of our five chosen companies, it was still below the average for the city, making it a good choice financially. The company offers a handful of discounts, including multi-policy, claim-free and a green home discount that saves you 5% if your home is certified green by LEED.
New York home insurance options
Unlike car insurance, homeowners insurance is not required by law in New York. If you have a mortgage, however, your lender may require you to carry a policy. Even if you are not required to have home insurance, however, many people prefer to have coverage to avoid facing high financial consequences if a disaster should come to your home.
Basic HO-3 (the most common type) homeowner policies cover your home, personal belongings, and liability, and will pay on claims once you cover the deductible. They also cover other structures on your property and loss of use coverage, which helps pay costs if you need to stay in a hotel after a disaster.
Here are some other optionals coverages available:
- Flood insurance: Flood damage is not covered by basic homeowners insurance. If you live near the river or another source of water in NYC, or in a lower-floor unit in your building, you may want to talk to an insurance agent about this coverage.
- Valuable items coverage: Your basic policy covers theft or damage to your belongings up to a point. Expensive collections, however, such as jewelry, artwork, or electronics may merit additional coverage.
- Water backup and sump pump discharge: This one is a little tricky. Your basic policy covers some water damage, but if the water backs up from a sewer or drain in your home or a sump pump overflow, you may need additional coverage to be able to file a claim.
Home insurance discounts in New York
Discounts are one of the best tools a homeowner has in obtaining the lowest cost possible. Almost all insurers offer at least a few of these, and they can dramatically impact the rate you pay for coverage. Here are some sample discounts that may be available to NYC homeowners:
- Bundling: If you own a vehicle, it makes sense to purchase your auto insurance from the same company as your homeowners insurance. Almost every insurer offers a small discount, usually around 5%, on both premiums. You may also earn a discount if you have life or another type of policy with the company that has your homeowners insurance.
- Home security: An alarm system and advanced window and door locks make your home safer from theft, and they may also earn you a small discount.
- Smoke/fire detectors: Simple smoke detectors may be enough to earn you a discount, and you may earn a bigger one if you have a sprinkler system or an alarm that is directly linked to the local fire department.
- Claim-free: Your insurer hopes to avoid paying out on claims. If you are able to avoid filing a claim for a certain number of years, usually three to five, you might get a discount.
Frequently asked questions
What is the best home insurance company?
There is no single company that writes the best policies for everyone. Each person’s situation is different, and so is each insurance quote. You will want to compare several of the companies that are writing the best home insurance in New York to see who gives you the cheapest rate.
How much does home insurance in New York cost?
The average cost for a property worth $250K is $1,721 in NYC. This is higher than the New York state average of $969. Your own premium will likely be different, since it is based on multiple factors including your age and credit rating, as well as the location of your dwelling and its condition.
How much home insurance do I need in New York?
Ideally, you want to have enough coverage so that you would be able to rebuild your home if it was destroyed in a disaster. A good insurance agent can help you figure out what that number would be and direct you toward the types of coverage that are most important for you to have.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and homeriers 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 may be different.
Rates are determined based on 2021 Quadrant Information Services data.