Cheapest homeowners insurance in New York

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Buying and owning a home is one of the biggest financial transactions and investments you’ll ever make. That’s why it makes sense to safeguard your property with the right homeowners insurance policy. Problem is, homeowners insurance can be costly, especially if you have a more valuable home or are located in an area where more threats and perils exist.

Finding the cheapest homeowners insurance in New York usually takes plenty of leg work and getting quotes from at least three homeowners insurance companies. You can save thousands of dollars on New York home insurance by shopping around and finding the cheapest home insurance.

Let’s look at how much homeowners insurance costs in the Empire State, highlight the cheapest insurers and offer tips on finding the cheapest homeowners insurance. 

How much is New York homeowners insurance?

The average homeowners insurance cost in New York is $1,840 for $300,000 dwelling and $300,000 liability coverage with a $1,000 deductible. Experts recommend you have at least $300,000 liability coverage to protect your home against a lawsuit. 

New York’s average is $465 less than the national average of $2,305. However, you can pay much more or much less for home insurance depending on where you live. 

Cheapest homeowners insurance companies in New York

New York Central provides the cheapest homeowners insurance rate of $1,045 per year, which is just $87 per month. Read on to know more which companies offer cheap home insurance in New York.

Cheapest homeowners insurance in New York by city

As per insure.com analysis, the city with the cheapest homeowners insurance rate is Rochester with an annual premium of $1,548 which is $129 per month.

Here are the cities with the cheapest average homeowners insurance rates in New York:

New York City, the Upper East Side, Upper West Side and Lower Manhattan have the highest average home insurance rates. One reason for the high costs is that housing is more expensive there than in other parts of New York City. 

Other factors that play a role in your home insurance costs are the claims history — for the area, your home and you. Your rates will likely increase if your neighbors file many claims. 

You can’t choose your neighbors and you can’t control what they do. All you can do is make sure to take care of your house so that you limit claims. 

Home insurance rates vary from one city to another. But with Insure.com, finding the right home insurance policy is easy. Learn more about homeowners insurance costs for different cities below.

Best homeowners insurance companies in New York

If you’re looking for the cheapest homeowners insurance in New York, there are a few insurers that stand out.

New York Central, Nationwide and Automobile Insurance Company have the lowest average homeowners insurance rates in New York.

Here is average homeowners insurance costs in New York for a policy with $300,000 dwelling coverage and $300,000 liability protection with a $1,000 deductible. 

Now, let’s take a look at the three cheapest home insurance companies in New York. 

New York Central Mutual (NYCM) Insurance

• Headquarters: Edmeston, New York
• Founded: 1899
• Contact: 800-234-6926, NYCM.com
• Available: Throughout New York State
• Discounts available: Multi-policy, claims-free (10%), green home (5%), home buyer, work from home (5%), retirement, gated community, protective device
• Other types of insurance offered: Auto, mobile home, umbrella, business
• Better Business Bureau rating: A+
• A.M. Best rating: A+
• JD Power rating: Above average (in New York)

NYCM is a property and casualty insurance company located in central New York that employs more than 800 insurance professionals and writes policies for over 490,000 customers. The company has three branch office locations — in Shelburne, Amsterdam and Buffalo.

Policy quotes can also be given over the phone. 

NYCM’s standard policy commonly includes coverage for the dwelling, other structures, personal property, liability and medical payments to others. Its website says that you can save up to 35% on its homeowners policy via a variety of discounts available.

Nationwide

• Headquarters: Columbus, Ohio
• Founded: 1926
• Contact: 877-669-6877, Nationwide.com
• Available: In all states except Alaska, Hawaii, Florida, Louisiana, Massachusetts, New Jersey and New Mexico
• Discounts available: Multi-policy, protective device, claims-free, home renovation credit, roof rating, gated community
• Other types of insurance offered: Auto, motorcycle, life, umbrella, dental, identity theft, travel, business
• Insure.com score: 4 out of 5 stars
• Better Business Bureau rating: A+
• A.M. Best rating: A+
• JD Power score: Slightly below average (808 out of 1,000)

Nationwide’s homeowners insurance policies typically include coverages for dwelling, personal property, liability, additional living expenses and medical payments to others. 

We found that Nationwide’s average bundle rate saved customers 25%, which is more than other major carriers surveyed in our rate analysis. 

Nationwide also makes it easy to get quotes and file an insurance claim online. And as a standard coverage inclusion, this insurer will rebuild your home at current building code requirements.

Automobile Insurance Company of Hartford (Travelers)

• Headquarters: Hartford, Connecticut
• Founded: 1864
• Contact: (800) 842-5075
• Available: In all 50 states
• Discounts available: Multi-policy (up to 12%), claims-free, home buyer, protective device, green home (up to 5%)
• Other types of insurance offered: Auto, renters, condo, travel, umbrella, landlord
• Insure.com score: 4 out of 5 stars
• Better Business Bureau rating: A+
• A.M. Best rating: A++
• JD Power rating: Below average (score — 808 out of 1,000)

Automobile Insurance Company of Hartford is a subsidiary of Travelers, offering similar policies, coverages, discounts and prices as its parent company. 

A standard homeowners policy includes coverage for the dwelling, other structures, personal property, liability and loss of use. 

We ranked Travelers the Best Home Insurance company for price in our 2021 review of the best Home Insurance Companies. This insurer boasted the lowest rates for coverage among those surveyed. Additionally, they had a low level of complaints filed with state regulators. 

Nine in 10 customers polled said they expected to renew with Travelers, while two in three indicated they would recommend homeowners insurance from Travelers to friends.

How much does flood insurance cost in New York?

The average cost of flood insurance is $1,273 annually in New York. That figure is based on dividing the number of policies and the total policy cost from the National Flood Insurance Program (NFIP).

That doesn’t mean all New Yorkers pay $1,200 or more for flood insurance. If you aren’t near the coast and not in a flood zone, you could pay much less for flood insurance. A property in a flood zone has higher rates than a home not considered a flood risk. However, homes not in flood zones can still be at risk of flooding. About 20% of flood insurance claims come from properties that are considered low or moderate risk.

Flood insurance isn’t typically part of home insurance policies. Instead, you need to get a separate flood insurance policy. You can buy a flood insurance policy through the NFIP or an insurance company that works with the NFIP. The Insurance Information Institute estimated that 60 private insurers offer Write Your Own flood insurance policy. 

NFIP policies provide flood coverage for $250,000 structural coverage and $100,000 personal property. If you need more coverage, you can check with private insurers to see if they can offer you more coverage. 

New York had the 12th highest flood damage claims in 2020. The Federal Emergency Management Agency estimated New York saw $11.1 billion flood insurance claims. 

The NFIP said New York has 202,295 flood insurance policies that total more than $250 million. New York’s average flood insurance premium is fifth most expensive in the U.S. — behind only Vermont, Connecticut, Rhode Island and Massachusetts. 

If you’re interested in flood insurance, check with the NFIP to get a quote. Or you can start by checking with your home insurance company to see if it offers flood insurance policies. 

Unlike homeowners insurance rates, which vary based on company, NFIP premiums are standard, so you won’t have to shop around and compare multiple insurer premiums unless you want expanded coverage.

How much do claims impact homeowners insurance premiums?

Filing a claim can make your homeowners insurance rate skyrocket. Here are the top average home insurance percentage premium increases based on claims:

• Filing a second fire claim — 60%
• Filing a second theft claim — 55%
• Filing a second liability claim — 52%
• Filing a second water damage claim — 50%
• Filing a second medical claim — 34%
• Filing a second weather claim — 29%
• Filing a fire claim — 29%
• Filing a theft claim — 27%
• Filing a liability claim — 25%
• Filing a water claim — 25%
• Filing a medical claim — 18%
• Filing a weather claim — 17%

You want to be careful about only filing a home insurance claim when you actually need it. For instance, if your front door gets damaged during a break-in, but nothing else is taken, you may want to pay for the damage yourself. Why? Because filing a claim will likely lead to higher home insurance rates. Plus, you have to pay a deductible when you file a claim. These are often $500 or $1,000. 

Replacing a damaged door likely will cost less than your deductible. In that case, you can pay for a new door and not file a claim and see your home insurance rates rise. 

What to do if you can’t find homeowners insurance in New York

If you can’t find a home insurance company to cover your home, you can check with the New York Property Insurance Underwriting Association about a fair plan. 

These plans offer similar coverage to standard home insurance. A FAIR Plan protects against covered perils, including fire, theft, explosion and vandalism. 

One major drawback to a FAIR Plan is that it’s more expensive than standard homeowners insurance. However, if no home insurance company will cover your property, a FAIR Plan could be your only option. 

How to get the cheapest homeowners insurance in New York

Finding the cheapest homeowners insurance requires shopping around and using best practices.

It’s wise to do your homework, get quotes from different insurers and ask plenty of questions, the experts agree.

“The price you pay for your homeowners insurance in New York can vary by hundreds of dollars, depending on the insurance company you buy your policy from,” says Mark Friedlander, director of Corporate Communications for the Insurance Information Institute in St. Johns, Florida.

Brian Martucci, the Minneapolis-based finance editor for Money Crashers, says every insurance company uses a unique, highly proprietary and very closely guarded algorithm to assess policyholder risk and calculate premiums.

“Because each company’s algorithm is different and because each insurer has a different appetite for risk, premiums can vary widely for the same policyholder and property,” Martucci says.

You don’t need to understand the details of how these algorithms work, of course. “But it’s important to know that sourcing as many property insurance quotes from as many different carriers as possible is the most reliable way to ensure you get the lowest offered premium,” adds Martucci.

Also, take the time to visit the National Association of Insurance Commissioners’ consumer search index to investigate possible complaints against insurance companies you may be considering.

“And check consumer reviews online and company websites to get a better idea of price ranges and benefits. Check the financial stability of the insurance company you are considering, too, from major rating companies like Standard & Poor’s and A.M. Best,” advises Friedlander.

To decrease insurance premiums, follow proven best practices.

“Bundle multiple policies with the same insurer. You’re virtually guaranteed to save by, for example, getting a homeowners insurance policy, auto insurance policy, umbrella policy and other types of insurance policy all with the same company,” Martucci notes.

Additionally, aim to pay more out-of-pocket upfront in the form of a higher deductible. The higher it is, the lower your premium.

“Most homeowners insurance companies recommend a deductible of at least $500. But if you can afford to raise that deductible to $1,000, you may save as much as 25 percent,” says Friedlander. “Remember, however, that if you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage. For instance, in New York State, you may have a separate windstorm deductible for hurricanes.”

Work to improve your credit, as well.

“Most insurance companies will quote you a premium after factoring in your credit score,” says Jeanne Kelly, the New York City-based owner of The Kelly Group Credit Coaching. “Be sure to review your three free credit reports before shopping for insurance to make sure everything is accurate. You might also want to lower your credit card debt before applying for insurance, as balances comprise 30 percent of your credit score.”

Last, don’t overpay for coverage you don’t need.

“For example, the land beneath your house isn’t at risk from theft, windstorm, fire and other perils covered in your homeowners policy. So don’t include the land’s value in deciding how much insurance to purchase or you’ll pay a higher premium than you should,” cautions Friedlander.

Erik Martin

Contributing Researcher

 

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Erik J. Martin is a Chicago area-based freelance writer whose articles have been published by AARP The Magazine, The Motley Fool, The Costco Connection, USAA, US Chamber of Commerce, Bankrate, The Chicago Tribune, and other publications. He often writes on topics related to insurance, real estate, personal finance, business, technology, health care, and entertainment. Erik also hosts a podcast and publishes several blogs, including Martinspiration.com and Cineversegroup.com.

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