If you own a home in New York, you may be worried about repair costs catching you off guard. Purchasing homeowners insurance could help set your mind and finances at ease. Home insurance is designed to financially protect you and your family in the event of a natural disaster or accident. The average cost of New York homeowners insurance for a $250,000 dwelling is $987 per year, according to Bankrate’s 2021 study of quoted annual premiums.
New York ranks last in the nation in homeownership rates as of 2021, with only 54% of New Yorkers owning their homes. Low rates of homeownership may be due in part to the state’s steep housing costs. Housing may be expensive in the Empire State, but your insurance premium doesn’t have to be. In fact, New Yorkers pay over $300 less on average than the national average home insurance premium of $1,312 per year. Bankrate’s insurance editorial team has analyzed information about some of the best homeowners insurers in New York.
Best home insurance companies in New York
Because the most affordable or most popular insurance options are not always the best suited for your circumstances, shopping around for homeowners insurance quotes in New York from a range of carriers could help you find the options that are right for you. To weigh the best New York home insurance companies, Bankrate considered price, policy options, claims handling, customer service rankings and billing processes.
Here are some of the top New York homeowners insurance companies, based on our assessment. According to J.D. Power, which ranked each carrier’s customer satisfaction, these five companies also have some of the best customer service in the industry.
|Home insurance company||Average annual premium for $250K in dwelling coverage||J.D. Power score|
|New York Central Mutual Insurance (NYCM)||$394||Not rated|
*Not officially ranked by J.D. Power due to eligibility restrictions
Allstate ranks highly in the 2020 J.D. Power Home Insurance Study, showing the company’s prioritization of client relationships. In addition to an A+ (Superior) financial strength rating from AM Best, Allstate offers a range of discounts. You might reduce your premium by up to 10%, for example, just by switching to Allstate.
Learn more: Allstate Insurance review
Nationwide offers a wide range of coverage options to homeowners. While it isn’t the cheapest provider on our list, the company’s average premium is still well below New York’s average. Nationwide also offers a long list of competitive discounts including home renovation credits and gated community deals.
Learn more: Nationwide Insurance review
New York Central Mutual Insurance (NYCM)
As the name suggests, New York Central Mutual is a mutual insurance company, which means policyholders own the company. That comes with a number of benefits, including a focus on customer service. In addition to a wide range of coverage options, this highly rated regional carrier offers excellent discounts, including deals for at-home workers and senior citizens.
Learn more: New York Central Mutual Insurance review
State Farm scored highly in the 2020 J.D. Power U.S. Home Insurance Study thanks to high customer satisfaction. The company’s A++ (Superior) financial strength rating from AM Best could give you peace of mind that this carrier can handle the financial burden from a natural disaster with thousands of claims. State Farm also offers plentiful online tools and resources for first-time homebuyers.
Learn more: State Farm Insurance review
USAA is hard to beat when it comes to coverage, claims, customer service, price and discounts. The company even includes up to $5,000 of identity theft coverage with a home insurance policy in most states. However, USAA is only available to active duty military members, veterans and their immediate families, so not everyone qualifies.
Learn more: USAA Insurance review
How much is homeowners insurance in New York?
The average annual cost for New York homeowners insurance in 2021 is $987 per year for $250,000 in dwelling coverage. That means New Yorkers pay over $300 less than the national average of $1,312 per year for home insurance. In comparison, nearby Massachusetts residents pay $1,307 per year and Connecticut residents pay $1,184 annually, on average, for the same amount of coverage. One reason for New York’s lower home insurance premiums could be that fewer homeowners are competing for policies. New York maintains the lowest percentage of homeowners in the U.S. at just 54%.
Home insurance in New York
When shopping for home insurance in New York, you may encounter several coverage options. To determine how much and what kind of home insurance coverage you need, you may want to look into common causes of loss in the state.
Common causes of loss in New York
Just over 97% of home insurance claims in 2019 were filed due to some form of property damage. New York is large, so the causes of damage in one area could be different from another location. However, there are a few common causes of property losses that apply to most of the state:
- Natural disasters: New York is vulnerable to a range of natural disasters, including hurricanes, floods, blizzards and even tornadoes. These severe weather events can cause significant damage to your home and personal property.
- Vandalism: Vandalism is a type of human-induced damage carried out against property or belongings. Vandalism is more common in large metropolitan areas — of which New York has plenty.
- Burglary: Just like vandalism, burglary may be more common in large cities. If you live in a neighborhood with above-average burglary rates, you may benefit from extended coverage, particularly if you own expensive or luxury items.
- Fire: Fires often cause massive damage. Although fires can happen anywhere, they may be more common in older structures or in homes surrounded by dense vegetation.
Home insurance coverage options in New York
The most common type of homeowners insurance policy is an HO-3 policy. A standard homeowners insurance policy generally includes the following coverages:
- Dwelling coverage kicks in if your home is damaged due to fire, hail, lightning, wind or other covered perils, but often does not include damage caused by flooding, earthquakes or normal wear and tear.
- Personal property covers your personal items, such as clothing, furniture and electronics if they are damaged or destroyed in a covered loss.
- Liability protection keeps you protected in the event that you, a family member or a covered pet injures someone or causes damage to someone else’s belongings.
- Additional living expenses (ALE), also called loss of use, provides coverage for costs incurred when your home is inhabitable due to a covered loss and you must find somewhere else to stay. According to the Insurance Information Institute (Triple-I), ALE typically includes temporary housing, moving costs and grocery or restaurant bills. ALE is usually limited to 20% of your home’s insured value, or a certain timeframe.
The common causes of loss in New York may convince you to explore purchasing separate coverage or endorsements. Endorsements are changes to your standard home insurance policy and can include increasing coverage. Whatever your specific needs, a local insurance agent can help you determine the policy that provides you with the best financial protection.
- Vandalism: If you live in an urban area, your home may be more susceptible to vandalism. To protect your finances, you may want to ensure you have coverage for this kind of damage.
- Weight of ice, snow or sleet: New York is known for its snowy winters. You may want to talk to a local agent about how your policy would cover damage caused by heavy snow or ice.
- Fire, smoke and lightning: Although your standard policy likely automatically covers fire damage, you may want to ensure your coverage is adequate and find out how to protect your home against fires.
- Flooding: If you live on the coast, such as Long Island or parts of New York City, you may be in a flooding zone. You may want to consider additional coverage to protect your finances. The Triple-I recommends all homeowners consider flood insurance, as 90% of U.S. natural disasters involve flooding. Flood insurance is generally sold as a separate policy through FEMA’s National Flood Insurance Program or private flood insurers.
Frequently asked questions
What is the cheapest homeowners insurance in New York?
The cheapest homeowners insurance in New York will vary based on individual factors like where you live, your insurance history, what coverage options you need and what discounts you can get. The Triple-I recommends getting a minimum of three quotes to compare coverages and premium costs.
How do I get homeowners insurance in New York?
You can get a quote from many companies online, or you may need to complete the process by phone or in person. You’ll need information such as your name and address, value of your home, amount of coverage needed and types of coverages you require. Working with a local agent can be very beneficial in the quoting process.
Do I need to add hazard insurance to my policy?
Hazard insurance is already included in most standard homeowners insurance policies. However, if you live in an area at high-risk of damage from natural disasters, you may want to consider opting for additional coverage. Certain areas of New York require windstorm coverage for named tropical cyclones, which includes a separate deductible from your standard homeowners coverage. The windstorm deductible typically runs from 1% to 5% of your dwelling coverage, according to the Triple-I.
What natural disasters are addressed by my homeowners insurance policy?
That depends on the type of policy you have. Most policies automatically cover damage caused by wind, rain and fires. However, you may want to review your specific policy with an agent to discuss what perils are covered. Flood and earthquake coverages are typically not included in a standard policy, but you might have the option to buy them as separate policies or endorsements.
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.