Though the majority of New York City residents are renters, nearly 33% are homeowners. As of 2021, homes in this city had a median home value of $745,200, which is much higher than the national average. The high median home value in New York City helps to contribute to higher average homeowners insurance costs. The average cost of homeowners insurance nationwide is $1,383 per year for $250,000 in dwelling coverage, while homeowners in New York city pay an average of $4,230 per year for a policy with the same coverage. That’s more than three times the national average cost of home insurance.
To help cut down on the high average costs, homeowners in New York City might be searching for the best cheap home insurance companies they can find, and Bankrate may be able to help. 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. While living in NYC can be pricey, the insurance companies outlined below offer robust coverage at affordable average rates, and may be able to help homeowners better afford good coverage to help protect their investment.
Best cheap home insurance companies in New York City
Bankrate reviewed average rate data from Quadrant Information Services, and what we found was that New York Central Mutual (NYCM), State Farm and American Family offer some of the cheapest rates on average. In addition to the average rate data, our editorial team also analyzed each company’s financial strength ratings, coverages, discounts, and other third-party assessment information, including the rankings from the 2022 J.D. Power Property Claims Satisfaction Study.
We used this information to issue each company a Bankrate Score, with a maximum score of 5.0. Homeowners in New York City who are looking for the best cheap homeowners insurance for their needs can use these same data points to help find the right company for them based on the factors that matter most.
|Home insurance company||Bankrate Score||Average annual premium for $250K dwelling coverage||J.D. Power score|
|American Family||4.1||$1,206||868 /1,000|
*Not officially ranked by J.D. Power due to eligibility restrictions
New York Central Mutual not only offers the cheapest average rates on our list, but also offers a wide range of policy options to New York City residents, including auto, home and commercial insurance. Homeowners can also opt to customize their home insurance coverage with add-ons like valued possessions, equipment and appliance breakdown and utility line expense coverage. NYCM also offers a range of discount opportunities, including discounts for homeowners who work from home, discounts for homeowners who are retired or have a newly purchased home, and discounts for having fire and water mitigation measures in place. And while this state-specific carrier did not rank with J.D. Power, which was likely due to its smaller size, it received our highest Bankrate Score of 5.0.
Learn more: NYCM Insurance Review
State Farm has provided insurance products since 1922. Homeowners who insure their homes with State Farm can get standard and additional coverage options, including add-ons to help protect their hobbies, keepsakes, and home and garden equipment. In addition to offering a range of coverage options, this company also ranks well with J.D. Power and earned a high Bankrate Score. However, discount opportunities with State Farm may be limited compared to many of its competitors. Still, the average annual rate for $250,000 in dwelling coverage from State Farm is significantly lower than both the New York City average and the national average, so there may be opportunities to get cheap homeowners insurance coverage, even without the discounts.
Learn more: State Farm Insurance review
American Family also offers low average annual rates to homeowners in New York City. With an average annual rate of $1,206 for $250,000 in dwelling coverage, this insurance company’s rates are significantly lower than the citywide and nationwide average. Plus, you may be able to save as much as 23% when you bundle home and auto coverage with this company. In addition to bundling discounts, homeowners can tailor their American Family policies with optional coverage, like matching siding protection, credit theft protection, sump pump coverage and hidden water damage coverage. However, while American Family earns a 4.1 Bankrate Score, it was ranked below the industry average by J.D. Power for property claims satisfaction.
Learn more: American Family Insurance Review
Nationwide offers low average rates on homeowners insurance when compared to the state and city average, which could make it worth a look if you’re searching for the best cheap homeowners insurance option in New York City. In addition to standard coverage options, Nationwide offers a few add-ons for policy customization, including coverage for earthquakes, water backup, identity theft and valuables. And while other companies on this list offer slightly cheaper average rates, Nationwide offers several possible discounts that may help you save even more money on your policy. This includes a claims-free discount and a discount for owning a home in a community that has certain security measures, like security guards, residence cards or key-lock devices.
Learn more: Nationwide Insurance review
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 who qualify for membership with USAA may want to consider this company for a home insurance 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
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.
- New home: Some insurance companies offer discounts for purchasing a new home construction or for owning a home that was built within the last few years.
- Protective devices: If you have certain protective measures in place, like a security alarm, sprinklers or certain smart home technology features, you could qualify for a discount on your homeowners insurance policy from certain companies.
- 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
Bankrate utilizes Quadrant Information Services to analyze 2022 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.