Best cheap homeowners insurance in New York City
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For property owners in New York City, buying home insurance may be a smart move to protect your investment in your home. The average cost of home insurance in New York City is $1,944 per year for $250,000 in dwelling coverage. However, shopping around and comparing rates may help you find cheaper coverage.
To find the best cheap home insurance in New York City, Bankrate reviewed some of the largest companies in the state and assigned the top carriers a Bankrate Score. These Scores are calculated based on criteria like average annual premiums, coverage options, discounts, financial strength and third-party customer satisfaction ratings. After analyzing these insurance companies, Bankrate determined that the best cheap home insurance companies in New York City include 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 cheapest home insurance companies in New York City. In addition to the average rate data, our insurance editorial team also analyzed each company’s financial strength ratings, coverage options, discounts, and other third-party scores, like those from the 2022 J.D. Power Home Insurance Study.
We used this information to issue each company a Bankrate Score, with a maximum score of 5.0. We hope that homeowners in New York City may be able to use these Scores to find the right company for them based on the factors that matter most to them.
|Home insurance company||Bankrate Score||Average annual premium for $250K dwelling coverage||J.D. Power score|
|American Family||3.1||$1,206||842 /1,000|
*Not officially ranked by J.D. Power due to eligibility restrictions
New York Central Mutual (NYCM) offers one of the cheapest average premiums on our list and only writes policies in the Empire State. In addition to low rates, homeowners may be able to save more with potential discounts for retired homeowners, remote workers and renovations. As a super-regional carrier, NYCM is not rated by J.D. Power for overall claims satisfaction, but it earns a low complaint index from the National Association of Insurance Commissioners (NAIC) for its home insurance product, indicating that policyholders are generally satisfied with the level of service.
Learn more: NYCM Insurance review
State Farm is the largest home insurance company in the U.S. by market share and may be a good choice for homeowners looking for a strong balance of low rates, great customer service and customizable coverage. Policyholders may save extra on their premium with potential discounts for bundling and updated roofs. Although State Farm has a set of robust digital tools, it also has many local agents in the New York City area for shoppers who prefer to conduct their insurance business face-to-face. State Farm’s policy endorsements are not discussed in great detail on the carrier’s website, but speaking with an agent may provide more insights into optional coverage types.
Learn more: State Farm Insurance review
American Family, commonly known as AmFam, may be a great company for homeowners who value customer service. The carrier earned one of the top scores for customer satisfaction from J.D. Power. As a regional carrier, AmFam’s digital tools are not as robust as some larger competitors, but it does offer 24/7 customer support services and local agents for in-person policy management. Homeowners may be able to build a more robust AmFam policy with coverage for hidden water damage, siding protection and equipment breakdown. Potential savings may be available for long-term and generational policyholders, renovated homes, paid-in-full and more.
Learn more: American Family Insurance review
In addition to standard coverage options, Nationwide offers a few add-ons for policy customization, including coverage for high-value items and roof replacement using stronger materials. With a wide range of available discounts, New Yorkers may be able to lower their Nationwide rates with a new home purchase, smart home features and home renovation. Nationwide did score slightly below the segment average for customer satisfaction from J.D. Power, so potential customers may want to speak with existing policyholders about the level of service.
Learn more: Nationwide Insurance review
USAA consistently scores highly with J.D. Power, but it is technically ineligible for ranking as it only writes policies for military members, veterans and their qualified family members. USAA’s policies offer complimentary 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 potential discounts for installing a home security system, being a long-term customer and installing connected home devices. USAA only sells policies online and over the phone, which may be an issue for homeowners who prefer to buy insurance in person.
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 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 insurance experts recommend having coverage in place to avoid high financial consequences in the event of a disaster.
Basic homeowner policies cover your home’s structure, personal belongings, other structures, guest medical payments and liability. Many policies also include loss of use coverage, which may help pay additional costs that result from being temporarily displaced from your home by a covered event.
In addition to standard coverage types, New York City homeowners may want to consider endorsements or additional standalone policies for more robust coverage. Some common options include:
- Flood insurance: Flood damage is not covered by standard 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 likely 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.
- Identity theft coverage: If you become the victim of identity theft, this policy may cover monetary losses and pay for various identity restoration services. It may also pay for things like credit monitoring, fraud specialists, reimbursement for court fees and reimbursement for replacing your Social Security card and driver’s license.
Home insurance discounts in New York City
Discounts may be one of the best tools a homeowner has for obtaining cheap home insurance. Almost all insurers offer at least a few of these and they may 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 carry other types of insurance policies, like boat or RV insurance, with the same company.
- Green home: If your home is built with sustainable materials, relies on renewable energy sources, like solar, or is LEED certified, you might qualify for a cheaper home insurance premium.
- Protective devices: If you have certain protective measures in place, like a security alarm, sprinklers or certain smart home technology features, you might 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.
Taking advantage of discounts may help you get a lower home insurance premium. However, keep in mind that some discounts have a greater savings potential than others. For example, claims-free discounts and bundling discounts often lead to the most significant savings. Checking with your insurance agent may help you identify what discounts you may be eligible for.
Frequently asked questions
There is no single company that offers the best policies in New York for everyone. Homeowners across the Big Apple may have different priorities when it comes to home insurance. To find the best company for you, you may want to narrow down a list of carriers that meet your needs and compare quotes from them to see which might offer you the best rate for the coverage you need.
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 homeowners in many other states. However, if you’re a homeowner in New York City, the cost of your homeowners insurance policy will likely differ from the average. This is because your rate is based on several factors, including your claims history, credit history, certain characteristics of your home and your coverage selections.
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. These endorsement 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.
If you live in a co-op in New York City, your insurance needs will likely vary based on the structure of the building and the design of the co-op. The co-op board will likely have a policy that protects common areas, like lobbies, elevators, and other shared spaces. In addition to that, you might choose to purchase a policy, typically condo insurance, that covers your liability, personal belongings, loss of use, medical payments and any structural elements not covered by the broader building policy. If you’re looking for insurance in a co-op, you might want to speak with a licensed insurance agent about your unique coverage needs.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and homes in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 may be different.
Rates are determined based on 2022 Quadrant Information Services data.
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.