Your Guide to Buying a Home Insurance Policy in New York

No matter where you live, house insurance is likely to be a part of your life. While regulations and rates vary from state to state, consumers across the nation face similar issues. Your individual state's location and factors such as climate or property values can affect the price you will pay. You also may need to consider supplemental coverage for earthquakes or floods. According to the Insurance Information Institute, New York residents pay on average $869 a year for premiums. Nationally, the Empire state ranks 8th in average homeowners and renters premiums.

How to Choose the Right Protection

More than 200 providers currently offer coverage in The Big Apple - those premiums account for nearly $2 billion annually, according to the state. There are several different types of policies offered in New York, ranging from basic to comprehensive packages. Residents in the state can choose from five types of policies for families who have one or two residences, or another form of policy for owners of condominium properties. There also are policies for tenants. When evaluating your proposed plan, you should take the time to understand which types of claims are covered. The state regulates these types of policies very specifically, so it is important to understand what kind of protection you will receive:

• The Homeowners-1 option in New York provides the most basic protection for fire, burglary, vandalism, bodily injury, property damage and other issues.
• Those who select a Homeowners-2 policy also will receive coverage for factors such as weight of ice, falling objects, or damage that results from an overflow of water from a fire sprinkler system.
• The Homeowners-3 plan is the most commonly selected offering in the area, according to the state's insurance department. This covers all risks excluding flood, earthquake, war and nuclear accident, among some others. It is the most comprehensive form of protection offered to residents. Those who need supplemental coverage for flood or earthquake should discuss options with their carriers.
• For even more peace of mind, the Homeowners-5 covers all the same factors as the HO-3 policy, but adds to it coverage for personal possessions.

Tips for consumers

Your plan exists to protect you in the event of a natural disaster, theft or some other emergency. You should always review your plan to understand the types of events covered. If you think you need supplemental protection, be sure to contact your insurer immediately. There are several factors related to premiums you should consider as you evaluate your plan:

• Seek competitive quotes: One of the best ways to feel confident that you're paying the right amount for your plan is through seeking several competitive quotes from multiple insurers. Be sure to review the proposals and compare them carefully. Ask questions if anything is confusing to you.
• Bulk it up: Many companies offer discounts to customers who combine multiple policies. If you have house, life and auto insurance, you could find significant savings if one insurer carried all of the policies.
• Adjust your deductible: If the costs of premiums are your concern, you can save money by raising your deductible. Just remember that by doing this, you will incur greater out-of-pocket expenses if you file a claim.