Home Insurance in New York


UPDATED: DEC 2020 | 3 MIN READ

High property values, damage from nor’easters and hurricanes, and a high population density all contribute towards the higher than average homeowners insurance premiums in the state of New York. But you may be surprised to discover that it’s actually not that expensive to insure your home as you might think it is. New York ranks number 15 in the Country Inn, just below Minnesota but a bit above Missouri. The higher rates of education and income may have something to do with this, as well as the fact that the majority of homes in New York are located in rural, Inland areas that don’t suffer as many destructive perils as the big city. 

  • Fun fact – Do you want a slice, or a whole pie? The iconic New York style pizza was first introduced to the state back in 1905. This delicious, cheesy delicacy is so popular that in New York City alone, there are more than 1,600 pizza-centric restaurants. 

Average Rates in New York

Many people – especially those who live and own homes in New York – may not be surprised to learn that it is in the top 15 of most expensive states when it comes to annual homeowners insurance premiums. Your typical New York homeowner is paying around $1,309 per year for adequate coverage. When you compare that to the national average of $1,211, that’s moderately more expensive. Minnesota, surprisingly, is more expensive – by only about $41/year. Missouri homeowners, conversely, are saving $24/year compared to homeowners in New York. 

New York is one of the big cities in the US where renters surpassed the number of homeowners. That explains why the average annual premium for renters insurance is $194, compared to the national average of $180. 

New York Legal Insurance Requirements

New York is one of the few exceptions when it comes to mold and homeowners insurance policies. Most states have adopted mold limitations which liberate homeowners insurance companies from having to pay out claims on mold damage – unless that damage is done by a covered peril, that is. Make sure you look at your New York homeowners insurance policy closely and ask questions about mold damage and what your policy does and does not cover. Other than that, New York state follows all of the other typical rules and regulations that other states do for homeowners insurance, such as only requiring you to purchase a policy if your mortgage lender requires it. 

Common Risk Factors in New York

There are over 75,000 single family homes that are at risk of hurricane damage in New York alone. Lots of standard homeowners insurance policies cover wind damage, but things like flooding and other storm-related damages may require you to purchase a separate insurance policy, including coverage from the National Flood Insurance Program. Some standard homeowners insurance policies may offer coverage for Hurricane related damages if you are willing to pay a separate hurricane deductible, which is usually a considerable expense. Damage from hail and power outages may also be a concern, but homeowners insurance policies don’t always necessarily cover these perils in the state of New York. Be sure to ask your insurance agent for more information on what your policy doesn’t does not cover. 

The FAIR program is a national insurance program to help homeowners living in high-risk areas get coverage if they have been rejected by regular homeowners insurance companies. It is managed on a state-by-state basis. In New York, the FAIR program is managed by the New York Property Insurance Underwriting Association. If you’re having trouble finding coverage, contact them for more information. Just keep in mind that these policies are usually considerably more expensive than typical coverage, so you should do everything you can to find a policy in the Standard Market before you choose this last resort option. 

Insurance Demographics/Statistics in New York

So far we’ve discussed average rates, legal requirements, and some of the biggest environmental perils that New York homeowners face today. But what other factors are at play when it comes to your homeowners insurance premiums? As it turns out, there are several. And we’re going to break down those numbers for you right here in this statistical summary. 

  • Home Values – Average home values are around $335,502 in New York. This is around $75,000 more expensive than the national average. This might be responsible for a significant increase in your annual premiums, since you will have to purchase more coverage in order to secure your home. 
  • Crime: Much like home values, the difference between New York crime rates and the national average is pretty vast. For most homeowners, the chance of being a victim of property crime across the nation is 1 in 43. In New York, that chance is 1 in 69, which are pretty nice odds that your home and property will be safer from burglars and vandals than you would be in other parts of the country. 
  • Average Income: The higher your income especially when compared to the averages in your area – the more likely your insurance company is going to trust you with financial responsibility and offer you a lower premium in return. In New York, the average annual income for a single-family household is $72,108. This is around $7,000 more than the national average. And if you are making more than your state average – or even the national average – you’re that much more likely to get a lower insurance rate.
  • Education –  What about your education level? As it turns out, New York homeowners are a little above the national average – 36% have a bachelor’s degree, instead of the national average of 32% of homeowners who have earned a bachelor’s degree or higher. And the more education you have, in a roundabout way, the more likely you are to be financially responsible. As with a higher income, a higher education gives your homeowners insurance company an incentive to offer you a lower premium. 

Where To Purchase Home Insurance in New York

We personally recommend shopping around online if you’re looking for a better deal on your current homeowners insurance policy. And we recommend doing so every year when your policy is coming up for renewal. We understand that there are rewards and benefits associated with staying loyal to a single company for many years – however, the insurance industry is an ever-changing landscape, and you could be overpaying by hundreds if not thousands of dollars by not at least shopping around on a regular basis.

So where should you start? You can ask family and friends. You could flip through your local Yellow Pages and call insurance offices in your area, one by one. But if you’re like most people, that’s going to take a lot of time and energy that you don’t have. So let us do all the work for you, and start saving hundreds of dollars per year off your home insurance premiums!

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