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Buying or owning a home in New York is no small expense, and homeowners will want to take steps to help protect their investment. It’s impossible for a homeowner to predict when or if their home or personal belongings will sustain damage from a covered loss. With homeowners insurance, however, homeowners in New York can get peace of mind knowing that their investment is protected against expensive damages from wind, fire, theft, vandalism, and other perils. Additionally, most mortgage companies require borrowers to purchase homeowners insurance and maintain coverage for the life of the mortgage.
Finding the right New York property insurance carrier might feel intimidating for homeowners, whether new or seasoned. Luckily, many homeowners can find a policy that works for them by researching the best homeowners insurance in New York. This list of the best homeowners insurance companies can serve as a great jumping-off point for New York residents on the hunt for homeowners insurance.
- BEST OVERALL: State Farm
- RUNNER-UP: Allstate
- BEST CLAIMS PROCESS: Lemonade
- BEST FOR SERVICE MEMBERS: USAA
- ALSO CONSIDER: NYCM Insurance
What to Consider When Choosing One of the Best Homeowners Insurance Companies in New York
It’s recommended that homeowners consider several key factors when shopping for homeowners insurance, whether it’s through a national carrier or one of many local homeowners insurance companies in New York. Homeowners will want to take into account the coverage options, the available coverage amounts, and the cost of a policy when choosing insurance. Additionally, homeowners may want to look at the customer service reputation of a company through homeowners insurance reviews to get an idea of how easy the company is to work with.
Coverage Amount
The coverage amount on a homeowners insurance policy is the maximum payout a policyholder can receive after filing a claim (less the deductible). Other factors can determine how much money a homeowner might receive after filing a claim, including whether the policy has replacement cost coverage or actual cash value coverage. Additionally, homeowners will want to consider their policy limits and whether they have items that require additional coverage. A policy with too little coverage could leave a homeowner paying for repairs out of pocket, especially if they have a policy with actual cash value coverage, which accounts for depreciation.
Homeowners can generally figure out how much homeowners insurance coverage they need by considering the value of their property and personal belongings. For example, a small, older home with hand-me-down furniture will not need as much coverage as a brand-new luxury home filled with expensive furnishings.
Policy Options
Although homeowners insurance companies all have standard policies, homeowners can usually customize their coverage as needed through endorsements or riders, which are additions to a standard policy. Homeowners will likely pay an extra cost to add an endorsement or rider to their coverage. The endorsement, in turn, often expands coverage or increases the coverage limit on the policy.
For instance, a homeowner might have an expensive jewelry collection. Their standard homeowners policy could limit coverage for jewelry to $1,500. By adding an endorsement, a homeowner can increase this limit to a specific amount that’s adequate to cover their jewelry to help repair or replace it if it’s stolen, damaged, or destroyed by a covered event.
Insurance Premiums
Insurance premiums are the cost a homeowner pays an insurance company in exchange for coverage. Many homeowners pay their premiums monthly as part of their mortgage payment; the lender then keeps the premiums in an escrow account and pays the insurance company annually when it’s time to renew the policy. While it’s tempting for some homeowners to look for the cheapest homeowners insurance in New York, it’s generally not recommended to choose a policy based on price alone. Instead, many New York homeowners find comparing several homeowners insurance quotes helps them get a policy that combines the value they want and the coverage they need.
The exact cost of a homeowners insurance policy varies based on a number of factors, including:
- Location of the home;
- Year built and construction materials;
- Policy deductible;
- Coverage amount and policy options; and
- Additional risks such as dogs, wood stoves, or a pool
- The presence of any safety devices, such as smoke detectors or an alarm system
Quote Process
It’s recommended that New York residents get several homeowners insurance quotes when shopping for coverage. The process of getting quotes can also help homeowners size up an insurance company’s customer service. Many homeowners want to work with a company that has friendly and efficient customer service. While gathering quotes, homeowners can see how easy it is to work with a company. An insurer that only offers quotes through a complicated phone process, for example, may be difficult to work with if the homeowner needs to adjust their policy or file a claim. On the other hand, a company offering quotes for homeowners insurance online, over the phone, and through a local agent may be more flexible and therefore easier to work with.
Claims Process
Like the quote process, knowing the claims process of an insurance company can help homeowners choose the right provider for their needs. Some homeowners insurance agencies, for example, have online portals or mobile apps that let customers file claims 24/7. This option could be appealing to tech-savvy homeowners who value convenience.
Providing a smooth claims process is an essential part of the best homeowners insurance in New York. It’s common for homeowners to file claims after an accident or stressful event, such as a fire in their home. Knowing they can file their claim easily and that the insurance company will process it quickly can be valuable in such situations.
Deductibles
An insurance deductible is the amount a homeowner is responsible for when they file a claim. For example, say a homeowner has a $1,000 deductible on their Long Island homeowners insurance. A hurricane off the coast causes wind damage to their home, which is covered by their insurance policy. The total repair cost is $10,000, so the insurance company will pay the homeowner $9,000, leaving the homeowner responsible for paying $1,000 out of pocket for the repairs.
Deductible amounts can affect the cost of a homeowners insurance policy. In general, homeowners who choose a higher deductible will see lower premium costs. Conversely, homeowners who want a lower deductible will likely pay a higher rate for coverage. When shopping for homeowners insurance, New Yorkers may want to consider how much of a deductible they could afford to pay when making a claim before they choose a policy.
Additional Policies
A standard homeowners insurance policy doesn’t cover every type of accident or peril. Homeowners at risk of specific perils may want to look at additional policies or coverage they could need. For instance, standard homeowners insurance doesn’t cover floods. A homeowner in an area prone to flooding may want to look for flood insurance in addition to regular homeowners coverage.
Homeowners in New York may also want to consider other types of insurance as well for their assets. For example, a homeowner who also owns a vehicle may want to have their homeowners and auto insurance policies with the same insurance provider. Many insurance companies even let policyholders bundle home and car insurance for a discount. Homeowners wanting to bundle may want to shop around to find the best home and auto insurance bundles.
Discounts
Home and auto insurance bundles aren’t the only discounts an insurance company might offer. Many insurance providers have multiple discount options for policyholders. Some offer lower rates to homeowners who opt for paperless billing or have safety devices installed in their homes. Others offer discounts for military veterans or public service workers like teachers or first responders.
Discounts and their value will vary among insurance companies. Homeowners looking to lower their insurance rates can usually speak with an insurance agent or customer service representative to find out if they qualify for any discounts.
AM Best Rating
The financial strength of an insurance company can be a good indicator of whether or not the company can pay out insurance claims. A company with poor financial health may not be capable of paying out claims, leaving customers to pay for repairs on their own. Insurance companies with good financial health, on the other hand, can usually pay out claims as expected.
AM Best is an agency that tracks and rates the financial health of insurance companies. The company helps consumers compare the financial well-being of insurance companies using a rating system from A++ (Superior) to D (Poor), with A++ being the highest rating possible. In general, companies with an AM Best rating of B+ or higher may be good options for homeowners to consider.
Not all insurance companies have AM Best insurance ratings; this doesn’t necessarily mean the company’s financials are poor. Instead, the lack of a rating could mean the company hasn’t been rated yet or doesn’t want to pay the fee for a rating.
Our Top Picks
We carefully considered companies that offer a variety of coverage options, endorsements, and discounts, as well as the company’s financial outlook, to find the best homeowners insurance in New York.
Best Overall
State Farm
- Quote process: Online, phone, agent
- Claims process: App, online, phone, agent
- Deductibles: 0.5 percent, 1 percent to 5 percent; $1,000 to $10,000; Hurricane: 2 percent or 5 percent
- Discounts: Multipolicy, protective device, hurricane-resistant upgrade
- AM Best rating: A++
Pros
- Relatively low insurance premiums
- Relatively high water backup coverage available of up to 10 percent of dwelling coverage limit
- Discount for upgrading to hurricane-resistant glass assemblies and storm shutters
- A++ AM Best rating
Cons
- Separate hurricane deductible as high as 5 percent of dwelling coverage limit
Why It Made the Cut: State Farm combines relatively affordable homeowners insurance premiums with the highest possible AM Best rating for financial security. New York homeowners may be happy to know that one of the largest providers of homeowners insurance in the country tends to offer affordable insurance premiums in New York. While the exact premium a homeowner pays in New York will vary based on factors including location and coverage type, the overall lower rates and high AM Best rating of A++ could make State Farm an attractive option for many homeowners. Homeowners with concerns about water damage from backups, such as those living in New York City where there are older sewer lines, might want to look into State Farm’s high coverage for water backup. Through a water backup endorsement, homeowners in New York could potentially receive coverage for up to 10 percent of their dwelling coverage limit. For a high-value home, this could equal a large amount of coverage for a policyholder if a drain or sewer backs up in their home. State Farm has a separate deductible for hurricane damage of up to 5 percent of the dwelling coverage limit, which means homeowners with expensive properties may have to pay quite a bit out of pocket if their home sustains hurricane damage. However, homeowners can counteract some of these potential costs by installing hurricane-resistant materials on their home. New York residents may qualify for a premium discount if they install storm shutters or hurricane-resistant glass assemblies on the windows of their homes.
Runner-Up
Allstate
- Quote process: Online, phone, agent
- Claims process: App, online, phone, agent
- Deductibles: $1,000 to $5,000; 1 percent or 2 percent; Hurricane: 5 percent
- Discounts: Multipolicy, protective device, responsible payment, claim-free, loyalty, new customer, home buyer, automatic payments, early signing, smoke-free
- AM Best rating: A+
Pros
- Ability to bundle multiple policy types
- Extensive and generous discount opportunities
- Claim forgiveness endorsement available
- Wide selection of additional policies available
Cons
- Relatively high insurance premiums
- Separate hurricane deductible as high as 5 percent
Why It Made the Cut: With a long list of discounts available for homeowners, Allstate makes it easy for New York residents to lower their cost of homeowners insurance. Allstate makes the list of the best homeowners insurance companies in New York thanks to its generous discounts and policy options. For example, the Claim RateGuard endorsement lets homeowners file a claim once every 5 years without penalty. That means a homeowner can use their homeowners insurance without fear of a rate increase for making a claim. Allstate may have higher premiums than some other insurance companies in New York, which could make it less affordable for some homeowners. The company also has a hurricane deductible of 5 percent, which means homeowners may have to make repairs out of pocket following a tropical storm. However, Allstate offers a myriad of discount options to help qualified homeowners offset these potentially high costs and significantly lower their premiums. Homeowners with a spotless claims history, for example, may qualify for up to 20 percent savings on their insurance premiums. One of the most popular types of discounts is bundling policies. With a large number of policy options, Allstate makes it easy for homeowners to protect all of their assets—from cars and motorcycles to ATVs and RVs. Allstate also offers life insurance and business insurance. Homeowners who prefer to have all of their policies through one insurance company may want to consider Allstate as a great option.
Best Claims Process
Lemonade
- Quote process: Online
- Claims process: App
- Deductibles: $500 to $2,500
- Discounts: Multipolicy, protective device
- AM Best rating: No rating
Pros
- Instant claim approval possible
- Low $500 deductible option
- Up to 40 percent of unclaimed premiums donated to charity
Cons
- Limited discount opportunities
- No current AM Best rating
Why It Made the Cut: The potential for instant approval of a claim makes Lemonade one of the easiest companies to work with when filing homeowners insurance claims. Lemonade stands out among homeowners insurance companies when it comes to the claims process. While many companies make it easy to file a claim through a mobile app, Lemonade takes the convenience one step further with instant claims approval. Lemonade uses AI software to filter claims for potential fraud or those that are more complicated. If a claim is straightforward and doesn’t require additional human support, the platform automatically approves the claim. Money for approved claims is paid out as soon as possible, and Lemonade states that nearly 40 percent of claims are approved instantly using AI. However Lemonade’s discounts are relatively limited and only include a protective devices discount and a multipolicy discount. Depending on the quoted rate, this could make Lemonade less affordable for some homeowners. However, Lemonade’s deductible options, which are as low as $500, could lower out-of-pocket costs when homeowners submit a claim. With a lower deductible, homeowners receive a larger claim payout, which may be a draw for some homeowners. While Lemonade doesn’t currently have an AM Best rating, it does hold an A rating from financial analysis firm Demotech. This rating suggests that Lemonade’s financials are healthy and it has the ability to pay out claims. Lemonade also uses its premium revenue differently than other insurance companies where leftover premiums are donated to nonprofits. Customers can pick the nonprofits they’d most like the extra premiums donated to, which could be a deciding factor for some homeowners.
Best for Service Members
USAA
- Quote process: Online (for USAA members), phone
- Claims process: App, online, phone
- Deductibles: Unknown
- Discounts: Multipolicy, protective device, connected home, loyalty, claims-free
- AM Best rating: A++
Pros
- Standard replacement cost coverage
- Exclusive contractor network
- A++ AM Best rating
Cons
- USAA membership limited to service members and their families
- Unknown deductible option
Why It Made the Cut: Military service members and their families will likely enjoy the replacement cost coverage that comes standard on USAA policies. Homeowners typically can choose two options for coverage when buying homeowners insurance: actual cash value or replacement cost. Actual cash value coverage takes into account a home or item’s depreciated cost when the insurance company is determining a covered item’s worth. A homeowner who has an actual cash value policy and experiences a loss that destroys the home may not receive a large enough payout to rebuild the home. A policy with replacement cost, on the other hand, covers the cost to rebuild the home at today’s prices, up to the policy limits, without taking into account depreciation. Many homeowners insurance companies require the purchase of an endorsement to add replacement cost coverage, but USAA offers it as standard. Not all homeowners will qualify for USAA policies because coverage is limited to active-duty military members, veterans, and their families, and this could disqualify many homeowners in New York. Additionally, qualifying service members may find the USAA quote process difficult when comparing their insurance options. The company doesn’t provide concrete data on its deductible options, and homeowners will need to have an existing USAA account to get an online quote. However, USAA remains one of the best options for military members and their families. Qualifying homeowners can feel confident in USAA’s A++ AM Best rating, which suggests strong finances. Additionally, USAA uses an exclusive contractor network to help customers find contractors to repair their homes after a covered peril. The network only includes contractors that USAA has vetted and that hold insurance. In addition, homeowners who use a network general contractor receive a 5-year warranty on the work completed.
Also Consider
NYCM Insurance
- Quote process: Phone, agent
- Claims process: Phone, agent
- Deductibles: Unknown
- Discounts: Multipolicy, protective device, home buyer, work from home, retirement, renovation, claim-free, green, gated community
- AM Best rating: A
Pros
- Generous work-from-home discount
- Multiple protective device discounts
- 24/7 claims support over the phone
Cons
- No online quote or claims process
- Unknown deductible option
Why It Made the Cut: New York homeowners who work from home may benefit from the unique work-from-home discount offered by NYCM Insurance. NYCM Insurance offers a range of insurance discounts, including those for homeowners who are claim-free, have protective devices in their homes, and have multiple policies. The most unique discount, however, could be attractive for those homeowners who work from home. The work-from-home discount lets eligible policyholders who work from home at least 20 hours a week save up to 5 percent on their insurance premiums. The low 20-hour threshold also makes it easy for hybrid workers who split their time between a home office and traditional office to meet the requirements. An additional discount of note is the green discount, which applies to homeowners whose home has been certified as “Green” by the U.S. Green Building Council LEED or meets the requirements of the National Association of Home Builders Green Building Guidelines. The protective device discount from NYCM Insurance is also unique from other providers. While many insurance companies offer discounts for using protective devices in a home, NYCM Insurance lets homeowners receive discounts for individual devices. For example, homeowners could receive separate discounts for fire alarms, burglar alarms, generators, and water shut-off systems. Homeowners who install multiple protective devices could see higher discounts on their premiums with NYCM Insurance. NYCM Insurance doesn’t offer online quotes or claims service, meaning homeowners will have to speak with an agent or to a representative over the phone to get a quote or file a claim. This could make it difficult to gauge the deductible options offered by the company. However, many homeowners prefer calling an agent to get a quote, as this gives them a chance to ask questions directly about the coverage or policy limitations and get a more tailored quote than could be provided online. And although homeowners can’t file claims online, NYCM Insurance provides a 24/7 claims support line, which makes it easy for customers to make a claim at any time—even in the middle of the night. Speaking with a human on the claims line could make it easier for the homeowner to file their claim correctly and understand what to do during the claims process.
Our Verdict
State Farm is our Best Overall choice for New York homeowners insurance because of its relatively low insurance rates, high coverage limit on its water backup endorsement, and discounts for hurricane-proof homes. Our Runner-Up pick, Allstate, has an attractive bundling option as well as plenty of other discount options to help lower monthly premiums.
How We Chose the Best Homeowners Insurance Companies in New York
Using extensive research, we analyzed homeowners insurance companies in New York to recommend the best options for many homeowners. We used a set of standard factors when evaluating the best insurance companies in New York. These factors included available coverage options and deductible options for various insurance agencies. We considered both standard coverage and any endorsements available to customize policies when we were looking at insurance companies.
Additionally, we considered the rates homeowners insurance companies offer New York residents and what discounts and deductible options could affect the total price of coverage. We used the quote and claims process to get a better idea of what kind of customer service homeowners could expect from a company. Finally, we took the financial health of a company into account through AM Best or other financial rating agencies, when available.
Before You Choose One of the Best Homeowners Insurance Companies in New York
This curated list of the best homeowners insurance in New York is meant for homeowners to use as a guide. While our extensive research on different companies could make any of these options a good choice for many New York homeowners, they may not be the best fit for every New York homeowner.
Insurance isn’t a one-size-fits-all solution. As for renters shopping for the best renters insurance in New York, it’s recommended that homeowners get quotes from multiple homeowners insurance companies to find the best policy for their unique insurance situation. Additionally, homeowners may want to talk with an insurance agent or insurance company representative to learn more about that company’s specific insurance offerings.
Cost of Opting for One of the Best Homeowners Insurance Companies in New York
Cost is likely one of the top concerns for New Yorkers looking for the best homeowners insurance companies in their state. However, homeowners insurance rates can vary widely among insurance customers, and in New York rates can also vary greatly by geographic location. Although the average cost of homeowners insurance in New York is $1,506 for $250,000 worth of dwelling coverage, the exact cost will vary for individual homeowners—especially those who own higher-value homes in more expensive areas of the state.
The cost of homeowners insurance in New York depends on many different factors, including specific location within the state and the property type. A homeowner with a single-family home in upstate New York, for example, will likely receive different rates than someone looking for condo insurance in New York City. As with any insurance product, homeowners may want to shop around for quotes from several different insurance carriers.
The Advantages of Opting for One of the Best Homeowners Insurance Companies in New York
The right coverage helps homeowners protect their home, belongings, and financial well-being if they experience a covered loss. Choosing one of the best homeowners insurance companies in New York makes it easier for homeowners to find the right coverage from a company they can trust.
The best homeowners insurance in New York provides coverage for fire, vandalism, and some weather-related damage. Homeowners insurance coverage can also protect homeowners from the high cost of lawsuits should they be found legally responsible for damages or injuries to a third party. Additionally, coverage from one of the best homeowners insurance companies can help pay to repair or replace personal belongings after a covered loss.
Most of the best homeowners insurance companies offer many benefits to customers, such as:
- Personalized coverage through endorsements and policy options;
- Discounts for qualified homeowners, such as a home and auto bundle discount; and
- Fast claims process through online portals and mobile apps.
FAQs
When shopping for the best homeowners insurance in New York, homeowners may have a lot of questions. New York residents can often find the right insurance for their needs by getting quotes from multiple insurance companies. In the meantime, homeowners can look through some of the most common questions and answers about homeowners insurance in New York.
Q. How much is homeowners insurance in New York per month?
Homeowners insurance rates in New York vary depending on the policy and company. Factors such as location and age of the home, construction materials, deductible amount, and coverage limits can affect how much a homeowner will pay per month. The average cost of homeowners insurance in New York is $1,506 per year for $250,000 of dwelling coverage, which is slightly higher than the national average of $1,428 per year for $250,000 of dwelling coverage.
Q. What does homeowners insurance cover in New York?
Standard homeowners insurance in New York covers the cost of damage for common perils, such as fires, windstorms, or vandalism. Additionally, it covers the homeowner’s personal belongings like furniture or clothing, as well as offering liability coverage, medical payments to others, and loss of use coverage.
Q. Is homeowners insurance required in New York?
Homeowners insurance is not legally required in New York, but most mortgage companies require borrowers to maintain homeowners insurance as long as they have a mortgage.
Q. Does New York require any special homeowners insurance coverage?
Some locations or special situations may require homeowners to purchase special homeowners insurance. For example, homeowners in an area at high risk of flood damage may want to buy flood insurance to more fully protect their home.
Q. How do I get homeowners insurance in New York?
New York residents can generally get homeowners insurance by contacting an insurance company directly or working with a trusted insurance agent to help them purchase coverage.
Q. Do I need to add hazard insurance to my homeowners policy?
Since hazard insurance is a component of every homeowners insurance policy and not a type of homeowners insurance, homeowners in New York won’t need to get a separate hazard insurance quote.
Sources: Bankrate