Best homeowners insurance in New York in 2021
If you own a home in New York, you may be worried about home damage catching you off guard. Purchasing homeowners insurance could help set your mind and finances at ease. Home insurance is designed to protect your finances in the event of a natural disaster or covered 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 about 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 above average in the 2021 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. However, Allstate does have an above-average complaint index rating with the National Association of Insurance Commissioners (NAIC).
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. But if you like to handle your insurance digitally, Nationwide might not be the right fit. The company received a below-average digital service rating in J.D. Power’s 2021 U.S. Insurance Digital Experience Study.
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. Because NYCM is a smaller company, its website is less developed than some of its competitors. Online home insurance quotes are not available.
Learn more: New York Central Mutual Insurance review
State Farm scored highly in the 2021 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 has historically been able to handle the financial burden of claims. State Farm also offers plentiful online tools and resources for first-time homebuyers. However, the company doesn’t have nearly as many discounts or optional endorsements as some of its competitors.
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 around 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
With knowing the common causes of damage in New York, you might feel more comfortable tailoring your policy to your unique needs. New York homeowners might want to consider these optional coverage types:
- Flood insurance: Flood damage is excluded from standard home insurance policies. New Yorkers may want to consider buying a separate flood insurance policy (although a few companies offer flood insurance as an endorsement to home insurance policies. Homeowners with a mortgage who live in flood zones may be required to purchase flood insurance.
- Identity theft coverage: Commonly offered as an endorsement, this coverage option could help pay for the costs associated with restoring your identity after it is stolen. As we live in an increasingly digital world, identity theft may be more common.
- Personal property replacement cost: Most standard home insurance policies automatically cover your belongings for their actual cash value, which means that depreciation will be removed from any claim payout. Many companies offer a replacement cost option for your personal property, which means that you’ll get the cost to replace your items with similar new items.
Not all companies offer the same endorsements, so figuring out what coverage types you are looking for could help you choose the company that best fits your needs.
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 Insurance Information Institute (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, details about your home, and the types of coverage 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. Coverage for floods and earthquakes 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.