For those who own property in New York, purchasing home insurance may be beneficial to preserve the value of your investment in your home. The typical cost of home insurance in New York is $1,944 per year for a $250,000 home with a coverage limit of $250,000. However, shopping around and comparing rates can help you find a cheaper insurance option.
To discover the most affordable home insurance in New York, we studied some of the largest companies in the state and assigned the highest rates to the most competent providers. These Scores are derived from metrics like the average annual premiums from Quadrant Information Services, the number of options available, discounts, financial viability and customer satisfaction with third parties. After studying these companies regarding home insurance, we concluded that the most affordable home insurance companies in New York City are NYCM and State Farm.
The most affordable home insurance companies in New York are listed below.
The average rate of bankrate was reviewed by Quadrant Information Services and it was found that New York Central Mutual (NYCM), State Farm and Nationwide are among the most inexpensive home insurance companies in New York City. Other than the average rate, our editorial team for insurance also assessed the financial strength of each company, the options available to them, the rates, and other third parties, such as the 2023 J.D. Power Home Insurance Research.
We utilized this information to give each company a numerical score based on their Bankrate, with the maximum possible score being 5.0. We intend to utilize the New York Homeowner’s Scores to find the appropriate company for them based on their greatest concerns.
| Home insurance company | Bankrate Score | Average annual premium for $250K dwelling coverage | J.D. Power score |
|---|---|---|---|
| NYCM | 2.5 | $623 | Not scored |
| State Farm | 3.2 | $826 | 829/1,000 |
| Nationwide | 3.2 | $1,321 | 812 /1,000 |
| USAA | 3.7 | $1,485 | 881/1,000* |
NYCM
New York Central Mutual (NYCM) has one of the most affordable average premiums on our list, they only write policies in the Empire State. Other benefits may include the potential to save more money with special discounts for retirees, remote workers and renovations. As a leading carrier in its region, NYCM is not considered a part of J.D.’s rating system. Power over the total satisfaction of claims, but a low complaint score from the National Association of Insurance Commissioners (NAIC) for its home insurance product, this indicates that policyholders are generally happy with the quality of service.
State Farm
State Farm is the country’s largest home insurance company by market share, it may be a good option for homeowners who want a strong combination of low rates, exceptional service and customizable coverage. Policyholders may be able to save extra money on their premium by taking advantage of potential discounts for combining premiums and updated roofs. Despite State Farm’s extensive digital tools, it also has numerous local agents in the New York metropolitan area who prefer to conduct their insurance business in person. The State Farm’s policy recommendations are not detailed on the company’s website, but agents can often provide additional information about supplemental coverage types.
Nationwide
Other than the standard options of coverage, Nationwide also offers a few extra add-ons for customization of policies, these additions include coverage for important items and the replacement of roofs with more durable materials. With a variety of available discounts, New Yorkers may be able to lower the National rate of their home purchase, smart features and home improvement. Nationwide had a slight drop below the average for customer satisfaction from J.D. Power, which potential customers may want to discuss with existing policyholders about the quality of service.
USAA
The USAA has a consistently high rating with J.D. Power, but it isn’t eligible for ranking because it only promotes policies for military personnel, veterans, and their family members who are qualified. The policies of the United States Army are intended to provide supplementary coverage for lost uniforms if they are associated with active military or if they are deployed. Other benefits of the American security association are potential discounts for installing a home security system, having a long-term commitment to the association and installing connected devices in the home. Only the USAA sells insurance via online and phone methods, this may be of concern to homeowners who want to purchase insurance directly.
The insurance options in New York for homeowners.
Unlike with car insurance, homeowners insurance is not mandated in New York by law. However, if you have a mortgage, your lender may insist on you having homeowners insurance. Even if your lender doesn’t require a policy or if your home is paid for, many insurance experts recommend having insurance to avoid the high financial consequences of a disaster.
Common homeowner policies include coverage of your home’s foundation, personal items, other homes, medical expenses for guests and liability. Many policies also include a loss of use insurance component, which may contribute to the extra costs associated with being temporarily moved away from your home by a covered event.
Other than the standard types of coverage, New York homeowners may want to consider supplemental policies or endorsements that would provide more extensive coverage. Some frequently-used options include:
- Flood insurance: The damage caused by floods is not covered by standard homeowners insurance, but it can be the most devastating disaster. Because many parts of New York are vulnerable to flooding, you may want to discuss this topic with an insurance professional about it. If you live in a flooded area and have a mortgage, your mortgage provider will most likely require you to have flood insurance before purchasing your home.
- Valuable items include: Your basic policy likely includes protection against theft or damage to your possessions to a certain degree. Costly collections, such as jewelry, art, or electronics, may need to be extra covered. This type of coverage is sometimes called a valuables floater or personal articles endorsement, it also typically covers your items for a “mystery” that involves them being lost.
- Identity theft insurance: If you are victim of identity theft, this policy may pay for the monetary loss and provide various identity restoration services. It may also pay for services like credit monitoring, fraud experts, an expense account for court costs and a replacement for your Social Security card and driver’s license.
Home insurance discounts in New York’s Central Park
Discounts can be one of the most effective tools a homeowner can utilize to get a low cost home insurance. Almost all insurance companies have at least one of these, and they may greatly affect the cost of coverage. Here are some reductions that may be applied to the NYC homeowner’s budget:
- Bundling: If you have a vehicle, it may be beneficial to purchase your auto insurance from the company that provides homeowners insurance as well. Many insurance companies offer a discount on both the premiums for home and auto insurance when combined. You may also receive a discount if you have other insurance types, such as boat or RV insurance, with the same company.
- Green home: If your home is constructed with environmentally friendly materials, it will rely on renewable energy sources, such as solar, and will have a lower insurance cost as well.
- Protection devices: If you have specific protective measures in place, such as a security alarm, sprinklers, or a specific smart home technology component, you may be eligible for a discount on your homeowners insurance from a particular company.
- Claim-free: If you can avoid filing a claim for a set number of years, typically three to five, you will receive a discount.
Discounts can be utilized to lower the cost of home insurance. However, it’s important to recognize that some discounts have a greater impact on savings than others. For instance, claims-free discounts and bundling discounts are often the most significant reductions. Having your insurance information with you may help you recognize what discounts you can receive.
