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Best cheap homeowners insurance in New York City

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The average annual rate for homeowners insurance in New York City is $1,721 for a policy with $250,000 in dwelling coverage. 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, Bankrate looked at multiple factors, including customer satisfaction, the scope of available coverage offerings, discounts, and of course, price. Although living in NYC can be pricey, there are insurance companies that offer robust coverage at affordable rates.

Best cheap home insurance companies New York City

All five companies selected below offer some of the cheapest homeowners insurance in New York, according to Bankrate’s research. Additionally, each one has average premium costs less than New York City’s average cost of homeowners insurance as determined by 2021 rate data from Quadrant Information Services. Our insurance editorial team also reviewed J.D. Power customer satisfaction scores, which are based on the experiences of more than 11,000 homeowners. Each carrier selected is a leader in at least one important selection criteria: a customer service rating, cheap price or a wide array of available discounts.

Home insurance company Average annual premium for $250K dwelling coverage J.D. Power Customer Satisfaction score
State Farm $808 835/1,000
Main Street America $1,072 Not rated
Nationwide $1,176 812/1,000
USAA $1,308 882/1,000
Travelers $1,703 800/1,000

State Farm

State Farm has provided insurance products since 1922. The carrier has a respectable ranking from J.D. Power, as well as the highest financial strength rating possible, A++ (Superior), from AM Best, which monitors the financial health of insurers. Although State Farm offers fewer discounts for homeowners than some competitors, it is the cheapest homeowners insurance company of any of our chosen insurance companies, meaning you are likely to get solid coverage for a low price.

Learn more: State Farm Insurance review

Main Street America

Main Street America has also been around for nearly a century, founded in 1923 and offering a wide range of products. Main Street America’s homeowners insurance provides all the standard coverage options, plus a robust portfolio of extras, including its “Homeowners Elite Program,” which extends coverage levels, such as adding replacement cost coverage and living expenses following a covered loss. However, Main Street America’s homeowners insurance complaint index with the National Association of Insurance Commissioners (NAIC) is 2.13, which means that the NAIC receives over twice as many complaints about Main Street America compared to the baseline.

Nationwide

Like most insurance companies, Nationwide’s coverage options can protect your home against theft, fire, weather damage and other losses. Optional coverage includes sewer backup and flood insurance, which is not part of a basic homeowner policy. Nationwide’s average prices are reasonable, and the carrier offers several 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. Unfortunately, Nationwide does not offer homeowners coverage for mobile or manufactured homes.

Learn more: Nationwide Insurance review

USAA

USAA scores highly with J.D. Power, highlighting the company’s focus on meeting the needs of its policyholders swiftly and efficiently. However, the company is not eligible for the official J.D. Power ranking as it only sells policies to a limited group — members of the U.S. military, veterans and qualified family members. Homeowners within that demographic may want to make USAA their first choice for a quote. USAA’s policies offer replacement value coverage and special perks for active military, such as coverage for uniforms following losses related to active duty or deployment. USAA also has discounts for being claim-free, bundling and having a security device at your home.

Learn more: USAA Insurance review

Travelers

Although Traveler’s average rate for NYC homeowners is the least cheap homeowners insurance company on our list, it was still below the average for the city, so it could still be a good choice for homeowners on a budget. 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 the Leadership Energy and Environmental Design organization (LEED). The carrier’s average rate could be partly due to its wide range of coverage options, including a jewelry floater, identity fraud and green home coverage.

Learn more: Travelers Insurance review

New York City home insurance options

Unlike car insurance, homeowners insurance is not legally required in New York. However, if you have a mortgage, your lender will very likely require you to carry a homeowners insurance policy. Even if your lender does not require a policy or if your home is paid off, many people prefer to have coverage to avoid facing high financial consequences if a disaster should come to your home.

Basic homeowner policies cover your home, personal belongings, other structures and liability coverage after covered claims. Many policies also include loss of use coverage, which helps pay costs if you are temporarily displaced from your home after a covered event.

Here are some other optional coverage types available:

  • Flood insurance: Flood damage is not covered by homeowners insurance. Because many areas of NYC are at risk for flooding, you may want to talk to an insurance agent about this coverage. If you have a mortgage and live in a flood zone, your lender will likely require you to have a flood insurance policy before buying your house.
  • 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. This type of coverage, sometimes called a valuables floater or personal articles endorsement, also covers your items for “mysterious disappearance,” which essentially means the item was lost.
  • Water backup and sump pump discharge: A basic policy covers some types of water damage, but if water damage comes from the backup of a sewer or drain line or a sump pump overflow, you may need additional coverage to be able to file a claim.

Home insurance discounts in New York City

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 discounts that may be available to NYC homeowners:

  • Bundling: If you own a vehicle, it may make sense to purchase your auto insurance from the same company as your homeowners insurance. Many insurers offer a discount on both premiums when home and auto insurance are bundled. 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: Smoke detectors, sprinkler systems and alarms could earn you a discount, especially if they are directly linked to your local fire department.
  • Claim-free: 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 offers the best policies for everyone. Each person’s situation is different and so is each insurance quote. You may want to compare several of the best homeowners insurance companies in New York to see which one gives you the cheapest insurance rate combined with the coverage you need.

How much does home insurance in New York City cost?

The average cost of homeowners insurance in New York City is $1,721 per year for a policy with $250,000 in dwelling coverage. This is higher than the cost of homeowners insurance in New York state, which is $987 per year for the same amount of coverage. Your own premium may be different, since it is based on multiple factors, including your claims history and the coverage you choose, as well as the location of your dwelling and its condition.

How much home insurance do I need in New York?

The amount of home insurance you need will vary based on your unique situation. Ideally, you want to have enough coverage to rebuild your home if it was destroyed in a disaster. A licensed insurance professional can help you figure out what the rebuilding cost would be and direct you toward the most important coverage types for you to have.

What risks are not covered by home insurance?

Home insurance offers you the comfort of knowing you are protected from the financial consequences of serious covered disasters and accidents. For example, damages from serious storms, fire, theft, vandalism and injury to guests are typically covered by home insurance. However, some damaging events, like earthquakes and flooding, are not covered with basic policies. You can usually add these coverage types separately. Necessary repairs caused by a lack of home maintenance are not covered.

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
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Edited by
Managing Editor