Best cheap homeowners insurance in New York City

Although it can feel like everything in the city is more expensive, there are still ways to find cheap home insurance in New York City, New York. The average cost of home insurance in New York City is $1,944 per year for $250,000 in dwelling coverage. Shopping around for the right coverage at an affordable rate can take time, but Bankrate’s done the research to help New Yorkers find a great price.

Bankrate uses multiple factors to determine the companies with the best cheap home insurance in New York City. Factors include average annual premiums, coverage offerings, available discounts, the company’s financial strength and third-party rankings for customer satisfaction. Bankrate has found that the companies with the cheapest homeowners insurance in New York City are NYCM, State Farm and American Family.

Best cheap home insurance companies in New York City

Bankrate reviewed average rate data from Quadrant Information Services, and found that New York Central Mutual (NYCM), State Farm and American Family are some of the best cheap home insurance companies in New York City. In addition to the average rate data, our editorial team also analyzed each company’s financial strength ratings, coverage options, 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 according to their priorities.

*Not officially ranked by J.D. Power due to eligibility restrictions

NYCM

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, such as working from home, being a retiree, a new home purchase and 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

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

American Family also offers homeowners cheap home insurance 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

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. With a wide range of available discounts, New Yorkers may be able to lower their Nationwide rates even more. 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. Although Nationwide is above average for property claims satisfaction, it ties with American Family for the lowest Bankrate Score in our New York City list.

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 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 warrant additional coverage. This type of coverage, sometimes called a valuables floater or personal articles endorsement, also typically 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

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    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 home insurance companies in New York to see which one gives you the cheapest insurance rate combined with the coverage you need.

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    How much does home insurance in New York City cost?

    The average cost of home insurance in New York City is $1,944 per year for $250,000 in dwelling coverage. That means New York homeowners pay much higher rates on average than the rest of the state or nation. However, if you’re a homeowner in New York City, the cost of your homeowners insurance policy will likely differ from the average, as your rate is based on several factors, including your claims history, certain characteristics of the home and your ZIP code.

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    How much home insurance do I need in New York?

    The amount of homeowners insurance you need in New York City will vary based on your unique situation. For starters, most homeowners need at least enough dwelling coverage to cover the cost of rebuilding their homes if they were destroyed by a covered peril. That amount will be based on your home’s valuation and the characteristics of your home. You can also opt to increase the coverage or customize your policy if you want to make sure your home is completely covered. The personalization options vary by company, but can be used to broaden your protection, and may include coverage for water backup, valuables, utility lines or equipment breakdowns.

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    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 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.

Bankrate Score

Bankrate Scores are calculated on a five-point scale and primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best home insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moody’s had the most impact on the companies’ Bankrate Scores. As price is a common consideration for homeowners, we analyzed quoted premiums based on 40-year-old male and female homeowners with a home policy with $250,000 in dwelling coverage. This profile, assessed across nearly 35,000 ZIP codes in the U.S., provided a basis on which homeowners may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.