New York Homeowners Insurance Guide

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

Homeowners insurance in New York

More than 200 insurance companies currently offer homeowners insurance coverage in New York - 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 coverage to comprehensive insurance packages. Homeowners in the state can choose from five types of policies for families who have one or two homes, or another form of policy for owners of condominium properties. There also are insurance policies for tenants. When evaluating your proposed homeowners insurance policy, 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 coverage you will receive:

• The Homeowners-1 policy in New York provides the most basic coverage 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 policy is the most commonly selected policy in New York, according to the state’s insurance department. This type of policy covers all risks excluding flood, earthquake, war and nuclear accident, among some others. It is the most comprehensive form of insurance offered to homeowners. Those who need supplemental coverage for flood or earthquake should discuss options with their insurance carriers.
• For even more coverage, the Homeonwers-5 policy covers all the same factors as the Homeowners-3 policy, but adds to it coverage for personal possessions.

Tips for consumers

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

• Seek competitive quotes: One of the best ways to feel confident that you’re paying the right amount for your coverage 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 insurance companies offer discounts to customers who combine multiple policies. If you have home, 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.