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Looking for home insurance in the Empire State? The average monthly cost for home insurance in New York is $192. Insurers like Nationwide, Kingstone, NYCM, Velocity Risk, and Amica are some of the best insurers in New York. But it’s important to keep in mind that the best insurer for you will be the one that can provide the coverage you need for a price you can afford.
New York homeowners insurance has several aspects you should know about. For instance, some counties require a separate deductible for hurricane damage. New York City’s five boroughs also have a different rating structure than other areas of the state.
Table of contents
- Best home insurance companies in New York
- How much is homeowners insurance in New York?
- What are the cheapest home insurance companies in New York?
- How much homeowners insurance do you need in New York?
- What are some of the biggest risks when owning a home in New York?
- How can you save money on homeowners insurance in New York?
- Average home replacement cost in New York
- New York home insurance FAQs
Best home insurance companies in New York
Many quality home insurance companies serve homeowners in New York, including both nationwide insurers and local companies. Finding the best home insurance company for you involves finding the coverage limits, premium costs, and customer service assistance that you need to insure your home to your desired level.
Below is a selection of some of the best insurers in New York based on certain criteria so you can find an agency to match your needs.
Best large insurer: Nationwide
Nationwide was founded in 1926 as an auto insurance company and began selling property insurance in 1934. It received a 816/1,000 score in J.D. Power’s 2022 U.S. Home Insurance Study for Overall Customer Service Satisfaction.
Homeowners pay an average of $108 per month for coverage.
Earned an A+ from A.M. Best
Some policyholders can bundle coverages for discounts
Insurance products available nationwide
Water backup coverage is listed as an optional feature for New York homeowners insurance
Nationwide’s J.D. Power score of 816 is below some major competitors
As a national insurer, it lacks the boutique service some may be looking for
Best insurer for cheap rates: Velocity Risk
Velocity Risk Insurance Underwriters is based in Nashville, Tennessee. It offers insurance products in New York and other select states along the Atlantic Coast. Customers pay an average of $91 per month for Velocity Risk coverage.
The cheapest average monthly cost for homeowners in New York
New York homeowners may be eligible for discounts not available in other states
Coverages protect against common coastal problems like water backups, mold, rain, wind, and hail damage
Doesn’t offer auto insurance, limiting bundling possibilities
Earthquake coverage isn’t available in every state
Renters insurance isn’t available
Best for storm coverage: Amica
Founded in 1907, Amica Mutual began issuing homeowners insurance in 1956. Amica also enjoys the highest rating on J.D. Power’s 2022 Home Insurance Study Overall Customer Satisfaction Index.
Only HO-3 and HO-5 policies available
Perks and coverage options depend on state
No opportunity to work with a local agent
Best insurer for high-value homes: Kingstone
Kingstone is a New York-based insurer serving the northeastern United States. Founded in 1886, it offers homeowners insurance for high-value homes, as well as coastal, seasonal, and secondary homes. Customers pay an average of $245 per month for Kingstone coverage.
A deep knowledge of high-value residential insurance needs
Homeowners can add a personal umbrella policy and canine liability policy to home insurance
A+ Better Business Bureau rating with very low complaints
Prospective customers will need to contact Kingstone directly to learn more specific details about their coverage limits and availability
A.M. Best recently downgraded the company’s financial strength rating from a B+ to a B
Some of the highest average monthly premium costs in New York
Best regional insurance company: NYCM Insurance
New York Central Mutual Insurance Company, or NYCM, operates in Central New York and offers different insurance products, including homeowners insurance. It’s been acknowledged for having affordable standard homeowners insurance policies and has received awards for its customer service.
Founded in New York in 1899 and only operates within the state, making it hyper-localized
Awarded No. 1 in Customer Satisfaction by J.D. Power in a 2022 U.S. Auto Insurance Study
Offers discounts for bundling home insurance with another policy, as well as for working from home, owning a home in a gated community, and being claim-free for five years
Only offers umbrella policies in addition to basic policies, which means a homeowner would need to find a different insurer for extended or optional coverages
Homeowners can’t file a claim on the NYCM app
New York only, meaning if you move out of state, you’ll need to find a different insurer
Insurify’s team of data scientists analyze millions of home insurance quotes, and weigh publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.
How much is homeowners insurance in New York?
The average monthly homeowners insurance rate across the state of New York is $192. However, several factors influence individual quotes, including the level of coverage you need, the location and age of your home, and any secondary coverages that you add to your standard policy.
How your policy choices affect home insurance rates in New York
Below is a list of key components that can affect the rate of your policy.
Your policy form
A special form policy, also referred to as an HO-3, is the most widely purchased home insurance policy. Many lenders also require HO-3 policies because they cover all risks and losses that affect the home, with the exception of specifically excluded perils, such as floods.
A peril is an unexpected or accidental event or circumstance that causes damage to your property or possessions. Homeowners insurance policies typically cover a list of perils, which may include fires, lightning strikes, water damage, theft, and vandalism. Some policies will specifically name perils that are either fully covered or not covered in the policy.
Different home insurance policies cover perils differently, and what they do and do not cover will influence the price of your policy. For instance, HO-1 policies cover a number of listed perils; however, HO-2 policies cover all perils included in an HO-1, plus additional perils. HO-5 policies are even more comprehensive, offering protection for personal possessions.
The following graphic illustrates the 16 most commonly covered perils in home insurance.
HO-3 policies are more common than HO-1 and HO-2 policies because they’re more comprehensive in their covered perils. HO-5 policies aren’t as common as HO-3s because a homeowner can also obtain the same personal possession coverage by purchasing a “Special Personal Property” endorsement.
You should always check which perils a home insurance policy covers before purchasing the policy. For instance, most policies cover damage from storms or hurricanes, but some homes in New York are also subject to a separate hurricane deductible or windstorm deductible.
Your coverage level
The level of coverage you select will influence your premium amounts, regardless of whether you opt for a higher deductible than required. Additional coverage or higher coverage limits will cost the insurer more money in the event of a claim; as such, your premiums will rise to help offset the insurer’s cost.
For example, an actual cash value (ACV) policy reimburses you for the value of the damaged property, minus depreciation and your deductible. A replacement cost value (RCV) policy reimburses you for the full value of the damaged property, including depreciation, minus the deductible.
Because the insurer will pay more to fully replace your damaged property with an RCV policy, these premiums typically cost more than premiums for ACV coverage.
Aside from paying your monthly premium to maintain your home insurance, you’ll also be responsible for paying a deductible when filing a claim. A deductible is a set amount that you must pay out of pocket before your insurer pays toward the damages.
For instance, if your deductible is $250, you’ll need to pay that amount first, then the insurer will pay for any covered damages.
Higher deductibles usually result in lower premiums because you’re taking on more financial responsibility. Lower deductibles usually result in higher monthly premiums because you’re asking the insurer to cover a higher percentage of the claim costs.
How location affects home insurance rates in New York
Location is a major factor influencing home insurance rates in New York. Although many homeowners expect premiums to vary from state to state, some are surprised that rates can be drastically different in neighboring ZIP codes.
Homes near New York’s coast are increasingly at risk of storm damage, which is why many insurers assess separate windstorm deductibles for those homes.
Theft, such as home burglaries, may be more prevalent in larger cities. For instance, the FBI’s UCR for 2018 and 2019 shows that burglaries are more common in Buffalo and Rochester than in Utica and Albany.
New York City’s five boroughs each have a separate tier rating under a single protection classification, while other cities in the state are assigned protection classification based on the level of fire protection in the area.
As you can see in the chart below, even average monthly quotes between Staten Island and the Bronx, two boroughs within New York City, are significantly different.
|City||Average Monthly Quote|
What are the cheapest home insurance companies in New York?
Velocity Risk, Liberty Mutual, and Nationwide are the cheapest providers of homeowners insurance in New York, according to Insurify data. The average monthly quote for homeowners insurance in New York is $192. Velocity Risk, Liberty Mutual, and Nationwide have average monthly quotes of $91, $99, and $108, respectively.
Keep in mind that your specific coverage needs may result in a more expensive quote. Factors like your home’s location and its potential for theft, vandalism, and environmental damage will influence your premium costs.
|Insurance Company||Average Monthly Quote|
|Midvale Home & Auto||$202|
How much homeowners insurance do you need in New York?
New York state has no legal requirement for homeowners to insure their homes. However, if you take out a mortgage on your home, the lender will usually require you to purchase a homeowners insurance policy with certain coverage minimums.
Even when you meet the lender’s minimum requirements, you may still want a higher level of coverage depending on your needs. For example, you may choose to purchase additional coverage in the event of a flood or to safeguard specific valuable possessions.
Before purchasing a plan, it’s important to understand exactly what is covered, what isn’t covered, and the limitations of those coverages. Due diligence can help prevent unexpected surprises or costs if you file a claim.
Although each insurer is different, many homeowners insurance policies have common standard components designed to protect your home and possessions against a variety of perils and accidents.
What home insurance coverages should you buy in New York?
If you’re purchasing a standard homeowners insurance policy in New York, many policies will include the following coverages:
Dwelling: Dwelling coverage refers to coverage for damage to your home. This coverage typically covers perils, such as fire, hail, and lightning.
Other structures: Although the walls and roof of your home are covered under dwelling, that coverage doesn’t include things like your detached shed or fence. Those structures would be covered in the “other structures” category.
Wind/hail/hurricane damage: Because New York is subject to damage from severe storms, many insurers cover these damages. However, keep in mind that they may charge a separate deductible for these coverages and that a flood is typically not a covered peril.
Personal property: While dwelling coverage protects the structure of the home, personal property coverage protects your assets. This coverage helps you repair or replace personal belongings that are damaged or stolen.
Personal liability: Personal liability protects you from lawsuits resulting from negligence on your property. This includes coverage for injury to both person and property damage.
Additional living expenses: Also called loss of use coverage, this reimburses you for expenses resulting from having to leave your home due to damages that make it uninhabitable.
What optional home insurance coverages should you buy in New York?
The New York State Department of Financial Services lists a number of optional or additional coverages that homeowners may want to consider. Though they’re not required, because these events may not occur, it’s important to understand that a homeowner will be responsible for any damages not covered in their standard policy.
These optional coverages include:
Flood insurance: Standard homeowners insurance rarely covers damages resulting from floods or mudslides. You can purchase separate flood insurance policies from the National Flood Insurance Program, as most New York areas participate in the NFIP.
Earthquake coverage: Many older homes in New York may have been constructed prior to standards set to protect property in the event of an earthquake. Some property insurers don’t offer this coverage, so you may need to find a separate insurer.
Water backup endorsement: This endorsement covers events like sewer backups and sump pump failures. Keep in mind that flood insurance typically doesn’t cover water backup events, even though both damages result from water.
Workers’ compensation coverage: If you hire someone to work for you at your property, workers’ compensation insurance may apply to any employee working less than 40 hours a week pursuant to the New York State Workers’ Compensation Law. Keep in mind that some employees are exempt from coverage under this law.
How much home insurance coverage should you have in New York?
Ultimately, your coverage level is up to you. As long as you meet your mortgage lender’s insurance requirements, you theoretically don’t need to purchase additional insurance. However, more comprehensive coverage may help safeguard your finances, your property, and your possessions against risks.
Everything from the value and location of your home to environmental risk and human-created hazards should influence the insurance policy you choose. Keep these points in mind when considering the extent of coverage you might want to purchase:
Home’s age and construction
While most people know that wood homes are at a higher risk of fire damage, some homeowners don’t consider the home’s age and construction methods when determining coverage policies. For instance, the actual cash value and replacement cost value may be significantly different, especially if the home needs to be rebuilt to a contemporary code.
Flood zone proximity
Even homes not on the coast of New York may be subject to flood risks from rivers, dams, lakes, or other bodies of water. This coverage is optional, though it may be a practical choice for many homeowners.
Winter weather hazards
Although many standard insurance policies do cover damages related to winter weather, homes in areas of extreme winter conditions may benefit from extended coverage policies.
For example, Syracuse, Rochester, and Buffalo had three of the seven highest snowfall averages over a 30-year period. This heavy snowfall could result in a higher likelihood of roof damage or slip-and-fall accidents on your property.
With so many policy options, homeowners may feel overwhelmed. Even though no single home insurance policy will work for every homeowner, you can find policies designed to meet the specific needs of your home’s location, construction, and risk factors.
It’s always a good idea to compare quotes from at least three different insurers before settling on a policy that fits your needs. When comparing quotes, make sure you’re comparing similar, if not exact, policies so you can evaluate them on a one-to-one basis.
Check Out: 10 Best Home Insurance Companies
What are some of the biggest risks when owning a home in New York?
Homes in every state are subject to perils, but some states are more at risk than others. For example, New York City is the country’s metropolitan area most at risk for storm surge and hurricane wind damage, according to the Insurance Information Institute.
The biggest risks when owning a home in New York include:
Storm surge/hurricane winds: Exposure to storm damage has increased steadily over the last 30 years. Some insurers may provide coverage for hurricane or wind damage, though you may be subject to a separate deductible fee when filing a claim.
Flooding: Flooding is not covered in most standard policies. Keep in mind that while damage from snow may be covered, damage from melting snow is considered flood damage. Some homes in New York are required by federal law to obtain flood insurance, which you can purchase through the NFIP.
How can you save money on homeowners insurance in New York?
Here are some ways you can save on homeowners insurance costs in New York.
Bundle multiple policies
Many insurers that offer multiple types of insurance coverage offer lower overall rates when you combine a homeowners insurance policy with another policy. This option can help you lessen your monthly expenses while still ensuring you have the coverage you need.
Learn More: Bundle Home and Auto Insurance: Save With Discounts
Make your home more theft/disaster resistant
Increasing your home’s level of safety and security can lead to lower premiums. Insurers may offer discounts for actions like installing hurricane shutters, modernizing electrical systems, and installing smoke detectors or burglar alarms. These help mitigate the risk of damage, which lessens the likelihood of you filing a claim.
Check Out: Home Burglary Protection and Prevention
Seek out additional discounts
Each insurer may offer premium discounts for policyholders who maintain a good credit rating or an active policy with the insurer for a number of years. Other discounts may include being a member of an organization or association. Retired policyholders may get a discount as well because their increased presence at home mitigates certain threat risks, like burglary.
Keep Reading: Top 12 Home Insurance Discounts and Savings
It’s wise not only to shop around when choosing a homeowners insurance policy but also to compare policies every few years. Premium rates, discounts, and eligibility requirements may change from year to year, which means you may qualify for a lower premium without reducing your coverage.
Using a comparison-shopping tool makes it easy to find the best rates.
Learn More: 10 Best and Worst Sites to Compare Home Insurance Quotes
Average home replacement cost in New York
The replacement cost of a home is simply the cost required to rebuild the home using the same materials. A policy with replacement cost coverage is advantageous because building costs will likely increase in the years after a homeowner purchases a home.
Although having a replacement cost policy will likely increase your premiums, it provides more financial protection in the event of a claim. With an actual cash value policy, you’d only be covered for the market value of the home or the current value of the damaged items due to depreciation.
The table below demonstrates that the average cost to rebuild a home varies drastically by city. New York homeowners should consider these ranges when selecting a homeowners insurance policy.
|City||Average Home Value|
New York home insurance FAQs
Before choosing a homeowners insurance policy in New York, be sure to understand the different types of policies, their limitations, and the average monthly premiums.
The average monthly cost of homeowners insurance in New York is $192. However, standard policies don’t cover every potential threat to your home. For example, your monthly premiums will likely increase if you add on secondary coverage like flood insurance.
Additionally, homes located in the five boroughs of New York City, coastal areas of Westchester County, and Nassau and Suffolk Counties may be subject to a hurricane deductible.
Compared to 13 other states, including Florida, California, Texas, and New Jersey, New York’s average homeowners insurance is cheaper. The average monthly cost in New York is $192, while the average of the 13 other states is $211.
Prices in New York may be cheaper than in other states due to its lack of environmental threats; for example, California has a higher risk of earthquakes and wildfires than New York, which means it’s more likely that homeowners in California will purchase additional insurance for these threats.
Actual cash value policies provide reimbursement for the current value of an item or structure; that is, the original value minus its depreciated cost. A replacement cost policy covers recoverable depreciation, which means a homeowner would receive the actual cash value for the item or structure, plus the depreciated value, to fully recuperate the cost of the damages.
Extended replacement cost policies extend your dwelling coverage by as much as 50% over the original amount the home was insured for. These extended policies are useful in the event that building costs exceed the dwelling coverage limit based on the home’s calculated replacement cost.
No, New York doesn’t legally require homeowners to purchase insurance. However, mortgage lenders will likely require it as a condition of your loan. Even if you’re not financing your home purchase, homeowners insurance is still a wise investment.
In the event of a total loss, your homeowners insurance policy can act as a primary funding source for rebuilding your home. In the event of an accident, such as a neighbor slipping and falling on your property, it can provide you with the liability coverage needed for any legal actions that follow.
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- AM Best. "Amica." Accessed February 10, 2023
- Better Business Bureau. "Kingstone." Accessed February 10, 2023
- AM Best. "Kingstone." Accessed February 10, 2023
- Federal Bureau of Investigation. "Crime in the United States." Accessed February 10, 2023
- New York State Department of Financial Services. "Understanding what affects the cost of insurance." Accessed February 10, 2023