Owning a home in New York can be a huge financial investment and comes with a lot of responsibilities, especially when it comes to buying home insurance, but buying home insurance can help you relax and your finances. The average homeowners insurance cost for a $250,000 homeowners insurance policy in New York is $1,068 per year, according to Bankrate’s 2022 report’s annual premium study.
According to our research, the top homeowners insurers in the Empire State are New York Central Mutual (NYCM), USAA, State Farm, Nationwide and Allstate. There are many things to consider when looking for homeowners insurance in New York. Whether you’re looking for a wide range of insurance options, a financially strong insurer, or reliable customer service, these five carriers could be a good place to start your home insurance search.
Best Home Insurance in New York
Since the cheapest or most popular insurance option isn’t always the best option for your situation, purchasing a New York homeowners insurance quote from multiple carriers can help you find the option that’s right for you. To determine the best home insurance companies in New York, Bankrate considered price, policy options, claims processing, customer ratings, financial strength rankings, and billing processes. The better a company performs in these categories, the higher its overall bank rate score, with a maximum score of 5 out of 5. This is helpful to quickly see if an insurance company qualifies for your home insurance.
Here are some of the top homeowners insurance providers in New York based on our ratings. The five companies also have the best customer service in the industry, according to J.D. Power’s ranking of each carrier’s customer satisfaction ratings.
|Home insurance company||Bankrate Score||Average annual premium for $250K in dwelling coverage||J.D. Power score|
*Not officially ranked with J.D. Power due to eligibility restrictions
New York Central Mutual (NYCM)
As the name suggests, NYCM is a mutual insurance company, which means that policyholders own the company and are not publicly traded. This can lead to many benefits, including a strong focus on customer service. In addition to extensive coverage, the regional carrier offers numerous discounts, including discounts for home workers and seniors. Because NYCM is a smaller company, its website is not as developed as some of its competitors. Online home insurance quotes are not available, so you’ll need to work with an independent local broker.
According to the Insurance Information Institute (Triple-I), USAA is the third-largest home insurer in the country by market share and is competitive in coverage, claims, customer service, prices and discounts. The company even includes home insurance against identity theft in most states. However, USAA is only available to active duty military members, veterans and their eligible immediate family members, so coverage is not available to everyone.
State Farm, the nation’s largest home insurance company, powers us in J.D. Home Insurance Study 2021 due to high customer satisfaction. AM Best’s A++ (Superior) financial strength rating for the company can give you peace of mind that the airline has historically been able to handle the financial stress of claims. State Farm also offers a wealth of online tools and resources for first-time home buyers, as well as an exclusive nationwide network of real estate agents. However, the company doesn’t offer nearly as many discounts or optional endorsements as some of its competitors.
Nationwide offers homeowners a wide range of insurance options. While it’s not the cheapest provider on our list, the company’s average premiums are still well below the New York State average. Nationwide also offers a long list of competitive discounts, including home improvement credits and gated community deals. However, if you’re willing to insure digitally, Nationwide may not be for you. The company was recognized in J.D.’s 2021 U.S. Insurance Digital Experience Study. Power’s ratings for digital services are below average.
Allstate cuts J.D.’s above-average performance in the 2021 Electric Home Insurance Study, a testament to the company’s prioritization of customer service. In addition to AM Best’s A+ (Advanced) financial strength rating, Allstate offers many discounts. For example, you can reduce your premiums by up to 10% simply by switching to Allstate. However, the National Association of Insurance Commissioners (NAIC) rated Allstate above average on its Total Complaint Index, a sign that some policyholders are unhappy.
How much is home insurance in New York?
The median annual cost of homeowners insurance in New York in 2021 is $1,068 per year, and homeowners insurance is $250,000. By comparison, nearby Massachusetts residents pay an average of $1,323 a year and Connecticut residents pay an average of $1,208 a year for the same amount of coverage. One reason for the lower home insurance premiums in New York may be that fewer homeowners are competing for policies in the Empire State, which means less risk for insurers. Although New York is the fourth-largest state in the U.S. by total population, it has the lowest owner-occupancy rate in the U.S. at about 54% due to its large number of apartment buildings.
Home Insurance in New York
New Yorkers need to consider many factors when purchasing homeowners insurance. To learn how to personalize your homeowners insurance, consider the location of your home and the most common causes of damage in your area, as well as the age, size, and condition of your home.
Common Causes of Losses in New York
In 2019, more than 97% of home insurance claims were for some form of property damage. New York is a vast territory, so the cause of damage in one area can be very different from another. However, there are some common causes of wealth loss that apply to most of the state:
- Natural Disasters: New York is prone to many natural disasters, including snowstorms, tornadoes, and hurricanes that can cause major flooding. These severe weather events can cause significant damage to your home and personal property, so much so that 36,000 New Yorkers without flood insurance are eligible for $5 billion in FEMA disaster assistance to help them recover from Hurricane Ida Come here. It is important to note that FEMA assistance funds are not a substitute for adequate insurance coverage and provide only a fraction of the compensation for losses typically covered by a comprehensive policy.
- Vandalism: Vandalism is man-made damage to property or property. Vandalism is more common in major metropolitan areas — New York has many of them. Of the 6,287 crimes reported in the Empire State, 1,731 involved vandalism, damage and vandalism, according to 2020 data from the FBI Crime Data Browser database.
- Burglary: Like vandalism, burglary is more common in larger cities. The FBI recorded 1,048 burglaries and thefts in New York in 2020, but the actual number could be higher. If you live in an area with an above-average theft rate, you may benefit from extended coverage, especially if you own expensive or luxurious items like art and jewelry.
Home Insurance Coverage Options in New York
Once you understand the most common causes of damage in New York, you may be more willing to tailor your policy to your individual needs. The cost of homeowners insurance is an important factor, but New York homeowners should also consider these optional types of coverage:
- Flood Insurance: Standard home insurance does not cover flood damage. New Yorkers should consider purchasing separate flood insurance (although some companies offer flood insurance as a supplement to home insurance. Homeowners with mortgages who live in flood-prone areas may need to purchase flood insurance.
- Identity Theft Insurance: Often offered as an add-on, this insurance option can help cover costs associated with restoring your identity in the event of a theft. As we live in an increasingly digital world, identity theft is a threat to all consumers. Personal Property Replacement Costs: The Most Standard Home Insurance Policy
- Personal property replacement cost: Most standard home insurance policies will automatically cover your property up to its actual present value, which means depreciation will be deducted from any claim payments. Many companies offer replacement cost options for your personal items, which means you will receive a fee to replace the item with a similar new item.
Not all companies offer the same endorsements. Therefore, by determining the type of insurance you are looking for, you can choose the company that best suits your needs.
Frequently Asked Questions
What is the cheapest home insurance in New York?
The cheapest homeowners insurance in New York depends on individual evaluation factors such as where you live, your damage history, and the coverage options you need. Discounts, such as when bundling home and auto insurance, discounts on multiple policies can also be an option to reduce the cost of home insurance. The Insurance Information Institute (Triple-I) recommends obtaining at least three insurance quotes to compare coverage and premium costs.
How do I get home insurance in New York?
You can get quotes from many companies online, or you may need to complete the process over the phone or in person. You will need information such as your name and address, details about your household and the type of insurance you need. It can be very beneficial to work with a local exclusive or independent agent during the bidding process.
Do I need to add term coverage to my policy?
Most standard home contents insurance already includes risk coverage. However, if you live in a high-risk area devastated by natural disasters, you may want to consider additional coverage. Certain areas of New York State require designated tropical cyclone coverage that includes a separate deductible from your standard homeowners insurance. Under Triple-I, the storm deductible is typically 1% to 5% of your residential coverage.
What natural disasters does my homeowners insurance cover?
It depends on the type of policy you have. Most policies automatically cover losses from wind, lightning and fire. However, you may need to review your specific policy with an agent to discuss the risks covered. Flood and earthquake insurance is usually not included in standard policies, but you can choose to purchase them as separate policies or supplemental coverage. Flood policies are available through the federally sponsored National Flood Insurance Program and through a number of private insurance companies that specialize in this coverage.
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