NEW YORK STATS
On average, New Yorkers are paying $2,064 every month on homeownership costs. There are 8.3 million houses in the Empire State, 54% of which are occupied by owners.
- Population: 19,542,209
- Average value of homes that’s occupied by owners: $293,000
- Households: 7,302,710
- Average household income: $62,765
- High school grad or higher, percent of people age 25 years +: 86%
- Average travel time to work: 33 min
The average premium amount was sourced from the latest data of the Insurance Information Institute, and the statistical data from the U.S. Census Bureau.
Over the last decade, most states in the northeast have experienced extreme weather conditions. Hurricanes such as Superstorm Sandy and Irma have caused great damage. In addition, the states experience alternating cycles of heat waves and snowfall. Unfortunately, these events are part of the reasons why New York’s average home insurance premiums are higher than the national average.
New York’s premium rates are high. The rates are a little over one hundred dollars more than the average annual national premium. New York homeowners insurance is ranked 15th most expensive out of 51 states. The insurance rates in New York depend also on credit scores and the size and value of the home. The age of the home also determines the premium that will be charged for it.
Home insurance in New York
Generally, living in New York is quite expensive; home insurance premiums would therefore not be an exception. In 2016 (latest available data), an average New York resident pays about $1,309 in home insurance premiums per year according to Insurance Information Institute (III). The national average is $1,192 in the same year. The implication is that New York’s homeowners insurance average premium is $117 higher than the national average. The monthly average home insurance premium for NY residents amounts to $109.
In New York, just like all over the USA, rates continue to rise. The New York state has also put in place laws to protect homeowners. Homeowners can therefore get coverage from only legit insurance companies.
Average New York Home Insurance Premiums
|National annual average||$1,192||$1,173||$1,132|
Our best homeowners insurance providers in NY by market share
To find the best home insurance companies, the first thing checked is the company’s market shareholdings in the home insurance sector in New York provided by III. The financial strength, quality of customer service, independent ratings along with response time to claims are also reviewed. The quality of customer service is judged by JD Power and Consumer Reports.
Allstate controls the majority of the market share of homeowners insurance in New York at about 14.3 percent. Allstate also leads in quality customer service all over New York. The company operates a crystal-clear policy on information delivery. In addition, Allstate has very helpful tools for homeowners. Particularly, the Common and Costly Claims finder helps homeowners to be aware of the home’s cover based on every unique zip code.
Allstate also goes beyond what other ordinary home insurance companies offer. The company offers a welcoming discount to clients and normal discounts for regulars. All these add up to more than a 30 percent total discount slashed out of the normal annual premium. Of all the companies we studied in New York, Allstate led the pack in discounting.
Customer care reports show that Allstate’s reputation for claims response is quite impressive. Customers are happy with the claim’s compensation. The customer service resources are also helpful to homeowners needs.
AM Best gives an A+ (Superior) in State Farms’ financial strength. A 3 (About average) out of 5 Power Circles Rating from JD Power shows that State Farm is truly committed to giving good and reliable services to homeowners.
State Farm is quite a popular homeowners insurance company not just in New York but also nationally. It controls a little over 13 percent of the total home insurance market share in New York. In addition to perfect management of claims, it also has an inclusive coverage policy. State Farm will do exactly as asked. They deliver in times of calamity.
Understanding homeowners insurance is not easy. Insurance in general, and how its policies work is quite complex. Ignorance might cost a homeowner a lot of money if the untimely event comes of filing a claim. It is therefore something many people appreciate when State Farm introduced helpful educational materials. The materials are available online and help first-time customers to familiarize themselves with various home insurance policy coverages offered. Once they understand, they can make informed decisions.
Apart from a home calculator and a learning center, State Farm also has a modern quote tool. Across all spheres, State Farm has scored 3 (About average) out of 5 Power Circles Rating in JD Power’s 2018 U.S. Home Insurance Study. The 2018 study assessed all aspects of an insurer’s offerings from policy coverage, affordability, and accessibility, averaging out the scores with an overall customer satisfaction score. State Farm’s score means that the company has fair prices, a manageable policy, and strong continuous customer support. Other customer reviews indicated that homeowners have fair payouts and claims are handled smoothly. AM Best’s rating of A++ (Superior) showed that the company has a lot of financial potentials.
Chubb controls a little more than 11 percent of the total homeowners insurance market share in New York, finishing third behind Allstate and State Farm. Just like other top performers, Chubb offers exceptional services. The company has unique options that other institutions may not be able to offer.
To start, Chubb has an excellent strategy. For example, an agent sent by the organization visits homeowners door to door. The agents explain and help the homeowner to understand the coverage and how much they might need. Chubb’s policy may cover furs, fine art, and expensive jewelry.
Chubb is also a pioneer in providing flood insurance. With Chubb, flood insurance is inclusive of the home insurance policy. Chubb is also ready to provide up to $15 million for property coverage. It is therefore advisable for people who have expensive homes in flood-prone areas to take this form of homeowners insurance.
AM Best showed that Chubb has a strong financial strength, with their highest rating A++ (Superior). The company got a 3 (About average) out of 5 Power Circles Rating from JD Power. The good reviews show that Chubb is a good home insurer that NY residents rely on.
New York Home Insurance Companies: Market Share and Summary of Ratings
|Rank||Insurer||Market Share %||AM Best||S&P||JD Power|
|6||National General Holdings||4.0||A-||NR||NR|
|9||American International Group (AIG)||3.1||A||A+||NR|
Source: Insurance Information Institute, AM Best, S&P, JD Power
Home insurance premiums vary across New York, depending on where you are and the risks associated with your area, the age of your home and other factors. A recent study showed that homeowners in the 10 largest cities in New York pay up to 22 percent more premiums than the other smaller cities. Generally, life in New York is expensive and home insurance is not an exception.
It has also been observed that higher premiums in New York cause a rise in the price of premiums all over the nation. When the premiums rise in New York, other states are likely to follow suit. That’s because New York is one of the big cities that drive the country’s economy.
Most companies in New York do not offer flood and earthquake coverage with a home insurance policy. It is therefore necessary for homeowners to make an addition, especially if they live in high-risk areas.
How to find the right coverage
Investing in a home is one of the most important financial decisions that anyone can make. There are many people who are trying to find the right home in their area of the country. A home is usually the largest and most important investment that anyone owns. With that being said, protecting this investment is a wise financial move. There are many people who do not spend enough time looking for the right home insurance coverage.
If something happens to your home, you will want to have insurance that helps pay for the cost to repair the damage. Here are some tips on finding the right home insurance coverage in New York.
Look past the cost
There is an inverse correlation between the cost of insurance coverage and the actual benefits that you receive. Instead of beginning with looking for ways to save money on insurance, you should start with the coverage that you need to protect your home. There are some people who end up costing themselves more money over time by choosing cheaper coverage.
The cost of your insurance coverage is only the monthly premium that gets added to your mortgage payment. If your plan has a high deductible, you could actually end up paying more money for a plan that costs less every month. If you have an old home, or if you live in an area with a lot of bad weather, it makes more financial sense to pay for better coverage. In New York, the winters are harsh and can damage homes. It only makes sense to get a quality coverage option that will help protect you financially.
Do your research
If you want to make a good financial decision, you need to conduct thorough research. There is a lot of information available online on different home insurance options in New York.
Before signing up for a plan, you need to compare several different options. The main variables to consider are premium and deductibles. However, you also need to look to see if things like flooding are covered in your plan. The vast majority of states require additional flood insurance to get paid for flood damage. Make sure to check this when looking for New York homeowners insurance in your area.
Instead of viewing home insurance as an expense, view it as an investment to protect your home. Finding the right New York home insurance may take some time, but it is worth it if something happens to your home. Use our free comparison tool that will provide you with a list of home insurers in your area instantly to get started.
Insurance Information Institute
For more assistance, please contact your local state department of insurance:
New York Department of Insurance
- Question Form