Home insurance costs in New York 2021

Home insurance costs in New York

 

The State of New York is heterogeneous: whether you live in a metropolitan center or in a suburb, near the coast, in a rural residence, or in a mountain region, your home will meet very different needs, and be exposed to several risks.

Due to its position, New York receives lots of storms coming from the Ocean but is somewhat shielded by the continent, so while there is the frequency of windstorms of any sort, few of them have been and are going to be severe: hurricanes, nor’easters, and tornadoes can cause great harm and large losses to houses anyway, because of direct wind action. They also bring heavy rains and floods, that can involve residences miles away from the coast; in the winter, snow becomes also an issue.

The incidence of these phenomenons in diverse regions of NY reflects on the costs of homeowners insurance: we found an average premium through the State of $988 a year*. We obtained our quotes from top-rated companies: Allstate, Amica, Chubb, Farmers, Erie, Farmers, Liberty Mutual, Nationwide, NYCM, Progressive, Statefarm, Travelers, and USAA. All these (except for NYCM, which is a local company) have a good to excellent overall customer satisfaction, assessed by J.D.Power, a premier dedicated institution. They also have the financial strength to properly support you during possible hard times: this results from evaluations of AM Best and Better Business Bureau, who are specialized in the insurance industry. The National Association of Insurance Commissioners (NAIC) last report shows relatively low complaints about the mentioned insurers in proportion to the number of policies written.

 

If you want to go into major details, in the table next are shown premiums for ten among the most populous cities of New York State, where you can see how they compare to the State average.

All premiums are calculated on a $1, 000 deductible, and $300,000 of liability coverage. Mind we have not considered the value of the houses, but their dwelling coverage which refers to home replacement cost: premiums take into account the price to repair or rebuild your house in case of damage or loss.

Metropolitan residences typically cost more to insure, because of risk factors as crime rate, severe weather exposure, and issues of liability. Even in the same city, you may find your rates changing, depending on the district; age and level of protection of the house, proximity to the seabord, as well as the credit history of householders are determinant on the cost of a policy.

 

City Dwelling coverage Square ft Premium
New York City.
$265,000
1,750
$1,370
Rochester
$310,000
1,505
$940
Yonkers
$310,000
1,800
$1,145
Syracuse
$260,000
1,490
$985
Albany
$365,000
1,590
$755
Cheektowaga
$310,000
1,930
$705
Mount Vernon
$255,000
2,500
$1,155
Schenectady
$250,000
1,455
$805

 

 

What kind of coverage do you need in New York State?

 

The territory as a whole is in part affected by winds and floodings, as you approach the coastal side. Any standard homeowners insurance covers most of the common hazards you will face a lifetime in New York, including wind, hail, snow, fire, thunders, and others non weather-related perils, up to a number of sixteen. However, the type and extent of coverage will vary upon the company you choose, and there are some constant exclusions that need to be addressed in their specific.

Wind is a named peril in a basic policy, like H0-3. That means you will be covered against windstorms, regardless of their form and intensity. If you live in the five boroughs of New York City, counties of Nassau and Suffolk, or coastal areas of Westchester, most insurers will require you to pay an extra deductible for hurricanes, which can range from 1 to 5% of your home insured value, or be a flat sum, depending on the insurance company; in order for this deductible to be applied, a hurricane must be reported to cause damage to houses, named and categorized (Irma, to give you an example). Homeowners who can’t get elsewhere their policy, due to their risk profile or financial issues, can turn to the FAIR plan offered by the New York Property Insurance Underwriting Association, which provide ‘’extended coverage’’ for windstorms of every type. Residents in the south and north shore of Long Island, and within some distance from the coast, Brooklyn, Queens, Staten Island and in part of Bronx and Westchester, can be assisted from the Coastal Market Assistance Plan, run by the New York Property Insurance Underwriting Association (nypiua.com), to get insurance for their homes.

Storm surges also bring floodings. Tornadoes can cause flash floods, in areas near the rivers. Standard policies almost never cover flood, and you will need separate flood insurance, if you are at concrete risk, also given that most mortgage lenders will require it. You will have to discuss the necessity with your insurer, who will provide you this coverage if adhering to the National Flood Insurance Program (NFIP); otherwise, you can find a specialized private company by yourself. One of the other choices is up to how comfortable you are with prices and coverage limits: typically, you will find more flexibility with a private insurer, yet the most reliability with NFIP. The cost of flood insurance will vary a lot, even in different cities of the same county, depending on risk: across the State, an average premium for flood coverage exceed $1,000, but it will cost you alike only if you live in a high-risk zone, otherwise, for moderate to low risk it can be respectively around $700 and below $350 yearly.

Hails through leaky roofs can also be responsible for small floods, but this will be covered by the standard policy because hail is the root cause and is a named peril.

Snow and ice are common issues in winter. Their melting can trigger moisture and minor floods; roofs can be damaged from excessive weight; a visitor can slide in an icy floor in front of your home entrance, requiring adequate liability coverage. Fortunately, these perils are included at a basic level of insurance

 

How can you save on home insurance in New York?

 

Premiums are set by insurers by weighing several parameters, that have to do with the risk associated to your home, and belongings suffering damages or a loss. You can take action on some factors, some of which are house-intrinsic, while others are purely financial.

  • Retrofit of refurbishing your home over time: age and roof of the building play a great role in this context. If your house is old, especially dates to over forty years, it is considered to bear a major likely to be damaged or destroyed, is more expensive to repair or rebuild, thus costlier to insure. This also applies to roof: newer materials are usually the best, more suitable to resist high winds that might blow them away, to heavy rains, to the weight of snow, and against thunders. Your insurance company will know which risk your house is most exposed to; check also the roof expiration date and existing cracks, then evaluate to repair or replace it. To sum, renewed house + upgraded roof= lower premium.
  • Wind and hail mitigation measures: insurers in New York State are required by law to offer discounts to homeowners who make their property prepared for hurricanes and other windstorms, like using laminated glass for windows and doors, or installing shutters.
  • Flood mitigation: sealing your roof deck, filling any gap around the entrances of the house, and ultimately elevation of the building are the best steps.
  • Prevent fire: there is always the possibility for a fire to develop, being environmental or arsons. Let your insurer know that you have a fire hydrant within reach, plus a smoke alarm installed, and don’t have wooden components inside the house. This is usually done through an appraisal.
  • Defend against crime: having alarms and anti-theft devices will lower your premium, especially if you own a high-value property, or living in some quarters of New York City, or Buffalo for instance.
  • Do not hold aggressive pets: dog bytes are common issues, and insurers want to avoid settling liabilities issues. Therefore, in case you have them, you will get higher premiums.
  • Avoid unnecessary claims: every claim you make will impact by a percentage the amount of premium you will pay in the future, even with other insurers, for a period of five up to seven years.
  • Review your credit history and improve the credit score: your financial profile is a measure of how able you will be to handle house-related issues and to pay in-time your rates. Aim to stay in the range of 670-739 to get standard optimal rates for your policy; if you can do better, you will obtain cheaper insurance.

If you are a new homeowner, there are more general guidelines to follow, that are more immediate actions you can take:

  • Get quotes from multiple insurance companies, compare them, and find a better price for the service you need: it is a long-term investment. Be sure that saving won’t mean sacrificing the limits of coverage for your house.
  • Choose a high deductible: if you are willing to take the risk, paying more out of your pocket when a claim is settled, then this is a quick adjustment to your premium.
  • Bundle home and car insurance together: nearly every company has this option, which you can make you save up to 25%, and in some cases 30%. Be aware of the bundled policy specifications: what is covered, what is not, and the amounts of coverages.
  • Stay with the same insurer, above all in your first years of contract: new homeowners who are loyal nearly always get benefits on their premiums.

Use our calculator to find how much a policy will cost per year, and the amount of coverages for your home, without leaving personal data. See how you can modify the premium by changing deductibles, and you will be more ready to go through the process of getting quotes. It is recommended to compare at least two options: choose among the best rated and most established insurance companies.

*Methodology: we aggregated and averaged multiple quotes for every city of the State, assuming a 35 years old individual, married, with a good credit score. Our effort is to keep data always updated and the most accurate possible, so as to satisfy at best the consumer’s expectations.