Your home is likely a big investment for you and your family and should be protected accordingly. Living without comprehensive home insurance could be putting your most important investment at risk. That’s where Obrella comes in. We make sure that shopping for and buying a New York home insurance policy is as painless as possible. With the help of experts, you can compare and contrast different policies to make a decision that you will feel confident about.
New York Home Insurance Costs
Home insurance premiums in New York average $1,158 annually, which is just over the national average of$1,034 per year. New York comes in with the 10th highest average insurance premiums in the country.
- Median Home Value: 306,300
- Household Income: 54,310
- Percent of Income on Home Ownership: 37.60%
As a New Yorker, you know how expensive things can be, but you also know a lot of these expenses are important. With a median household income of $57,369, New Yorkers spend just over 37% of their household income on home ownership. This places New York at number five for states whose residents spend the most on home ownership. The median home value in New York is $288,200, with an average household size of just over 2.5 people.
If you’re looking for the right insurance policy for your New York home, let an insurance expert help you find a homeowners insurance policy that meets your needs.
What Goes into Home Insurance Premiums in New York?
What goes into the price of your home insurance policy? Your provider may look at unique characteristics of your home and neighborhood when determining your premium, such as the cost of building a home in your area, the area’s crime rates and other statistics, the size of your home, and the year it was built. Even your financial background (i.e. your credit score) can factor into your monthly rate.
A higher likelihood of floods, tornadoes, earthquakes, and other natural disasters can also contribute to the cost of insurance premiums. Locations that are more prone to natural disasters are likely to see more expensive insurance premiums, since premiums represent the risk a provider takes on by insuring your property.
Even aspects of your property that are generally considered benefits, such as a guest house or a swimming pool, can result in a higher premium. That’s because these extra features represent additional property for the insurance company to cover, therefore there is added risk. Fortunately, installing home and property protection devices like motion-sensor lights, security systems, and surveillance cameras can often result in discounts on homeowners insurance.
What Are Your Homeowners Insurance Options in New York?
Many home insurance companies in New York give you a range of coverage options to choose from. Here are a few examples:
- An HO-1 policy covers damage to your home that occurs as the result of any of the first 10 classified disasters fire or lightning, windstorms or hail, explosions, riots, damage caused by aircrafts, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption. However, this type of policy is no longer available for purchase in most states.
- HO-2 policies are designed to provide coverage in the event that your home is affected by any of the 16 classified disasters. This is a named peril policy. So if the cause of the damage is not specifically named in your policy, your home insurance companies don’t have to cover the damage.
- HO-3 policies are open peril policies. So unless it’s named in the exclusions, the insurer will cover the damage. Keep in mind, many of the exclusions are very broad. So if you searched for something specific like a “broken water pipe”, you wouldn’t find it in the exclusions. But you might find something else that would cover water damage.
- HO-6 policies are meant exclusively to cover condos. They cover everything from the walls-in meaning flooring, carpeting, cabinets, appliances, etc. But they do not cover the building itself.
- Landlord policies can be adjusted to cover more personal property, etc. The average cost is often lower, though, because it’s focused on covering the building, but not necessarily all the liability and personal property it would if the property owner lived there.
More information below:
- HO-1: Limited Coverage
- An HO-1 policy covers damage to your home that occurs as the result of any of the first 10 classified disasters—fire or lightning, windstorms or hail, explosions, riots, damage caused by aircrafts, damage caused by vehicles, smoke, vandalism, theft, and volcanic eruption. However, this type of policy is no longer available for purchase in most states.
- HO-2: Basic Policy
- HO-2 policies are designed to provide coverage in the event that your home is affected by any of the 16 classified disasters.
- HO-3: Standard, most popular
- The majority of people in New York purchase this type of policy because of its extensive coverage and relatively few exceptions.
- HO-8: Older Home
- This policy guards against declining home values by paying back homeowners for damage on an actual cash value basis. However, some more aged homes may not qualify for complete replacement cost policies.
What is Covered By Standard New York Homeowners Insurance?
In the event of damage or total loss of your home, your coverage will depend on your policy’s terms. In general, it’s important to understand what your policy covers. While insurance companies can cover perils they excluded or did not include (depending on the type of insurance), they don’t have to. More importantly, the act of paying right now does not mean they’ll continue to pay for new costs that come up that are not covered in the policy. Here are some common home insurance coverage definitions to help you determine the coverage you need:
- Coverage A – Dwelling
- Covers damages to a home and any structures attached to the home. This includes damages to any of the home’s heating system, permanent air conditioning, wiring, or plumbing.
- Coverage B – Other Structures
- Structures not physically connected to the house are protected under Other Structures coverage. This includes free-standing sheds, fences, guest homes, and detached garages.
- Coverage C – Personal Property
- If the homeowner loses personal belongings due to theft or other damage, Personal Property coverage will compensate the homeowner for the value of the item—be it clothing, furniture, electronics, or jewelry. Personal Property coverage also extends to personal possessions that are damaged or lost outside the home, such as items in a storage unit.
- Coverage D – Loss of Use
- If home repairs prevent you from inhabiting your house, Loss of Use coverage can help. This coverage reimburses the homeowner for their living expenses for as long as they are unable to live in their home.
- Coverage E – Personal Liability
- If a homeowner is sued and found legally responsible for damages or injuries to another person, Personal Liability will cover the homeowner’s financial loss.
- Coverage F – Medical Payments to Others
- Takes care of the medical costs of anyone injured by the homeowner’s pets or anyone injured on the homeowner’s property.
Where Can New York Residents Find Insurance Resources?
The New York Department of Financial Services : Oversees property insurance in the state. The department’s mission is to encourage high standards of honesty, transparency, and fair business practices, as well as educate and protect those who use insurance products and services. The department can provide you with timely and easy-to-understand information about insurance. Their goal is to help you make sound decisions when purchasing and managing your home insurance policies. If you’re a New York homeowner, you can contact the Consumer Hotline Monday through Friday at:
Shopping for home insurance can be intimidating. With all the different options to sort through, it can be difficult to decide on the best policy to keep your home protected. Luckily, you have Obrella. Read our resources or give an experienced insurance agent a call. They’ll ask the right questions to understand your needs, then walk you through your options and help you choose the perfect plan. They can even bind your policy over the phone! So don’t let shopping for home insurance be more difficult than it needs to be use Obrella to find what you need quickly and easily.
To talk to an insurance professional with experience in New York home insurance policy options, call today at [mapi-phone-link /].