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Don’t Overpay for Home Insurance in NYC – Here’s How to Save

Home Insurance

When most people think of home insurance, they think of the huge expense that goes along with it and assumes that it’s something you have to pay for whether you want it or not. But home insurance doesn’t have to be expensive, as long as you know what steps to take before signing any contracts. So before making any decisions about your New York City home insurance policy, learn more about how you can save money on coverage and which additional features you might want to consider purchasing.

Know Your Neighbors

One of New York City’s many beautiful attributes is also one of its least appealing: it’s crowded. With so many people packed into such a small area, everyone knows everyone else—and that can be beneficial when it comes to your home insurance rate. If you know who you live next door to, then you can get a better idea of how much they paid for their policy and negotiate more effectively with your agent. Keep an eye out for ways that someone living nearby could lower their premiums—it never hurts to ask them about it, even if they say no initially. Neighborhood discounts are rare but possible; just keep at it until someone says yes!

Get A Large Deductible

One way you can save on home insurance NYC is by opting for a higher deductible. This means that instead of paying, say, $500 or $1,000 toward a claim (out of your pocket), you’d pay closer to $2,000 out of your pocket before your insurance kicks in. Having more money on hand may sound scary, but it makes sense from an insurance standpoint because higher deductibles mean lower premiums.

For example, with a standard homeowner policy ($500 deductible) that costs about $4,250 per year and an average home value of $338,200 (based on Zillow data), you’d pay about 3 percent of your home’s value each year.

Get Renters Insurance

If you’re renting, there’s a good chance your landlord doesn’t have renters insurance. That means that, if someone breaks into your apartment and steals or damages any of your belongings (or if they injure themselves while they’re inside), you won’t be compensated. Renters’ insurance covers personal property, as well as liability protection (meaning if someone is injured while on your property). If you live in an urban area, it can also protect against loss of use and business interruption (meaning if a fire takes out your building and causes you to lose money).

The Best Part?

It’s usually very affordable—around $15-30 per month. Make sure you know what kind of coverage you need before buying a policy, though; some policies only cover certain items like jewelry or computers, so make sure yours will cover everything in your home.

Purchase Multiple Policies Through One Company

home insurance NYC? You might pay even more by doing so! Many home insurers offer a discount when you bundle your auto and renters’ policies through them. Bundling can save you as much as 10% off your home insurance policy, but it can also add up to 15% on car insurance. Make sure you’re getting a great deal before signing up for bundled coverage; do some research on rates from other providers and compare their quotes with what your current insurer is offering. Shopping around every few years can save hundreds of dollars per year; that may be worth sacrificing 10% or 15% off one policy if another company gives you better deals elsewhere. No one knows your situation better than you, so only choose bundles if they’re obvious savings.

Ask About Discounts

Just because you live in New York City doesn’t mean you have to pay a premium price for home insurance. If your neighborhood is prone to natural disasters or has experienced significant crime, ask your insurer about a discount on your policy. For example, if your house lacks an alarm system, is located on an exposed hillside, or has weak locks and windows, you could qualify for a discount of up to 10% off your premium rate. The more vulnerable your home appears from an outsider’s perspective, the higher percentage discount will be available to you. But don’t wait until it’s too late; discounts are often only available at renewal time, so it may take several years before you get a break on your home insurance premiums. To see what kind of discount is possible for your home and property.

Choose Your Policy After You've Paid Off Loans And Credit Cards

Once you’ve paid off your loans and credit cards, it’s time to start shopping around. While most mortgage companies are required by law to offer you homeowners insurance as part of your loan, many times those policies cost more than they should. A good place to begin shopping is with a local independent agent who can walk you through all of your options. Remember, just because it’s an independent agent doesn’t mean they’re necessarily cheaper or less qualified – talk with a few different agents so that you get a sense of their processes and level of expertise before committing. And don’t forget to ask about discounts!

Many companies will offer special deals if you have multiple policies (homeowners plus auto, for example), if you have certain security features installed on your home (like fire alarms or deadbolts), or if you pay upfront rather than monthly. Also, keep in mind that there are often ways to reduce premiums without sacrificing coverage; having a deductible equal to 10% of your home value rather than 5%, for example, could save you hundreds per year without significantly increasing risk.

Shop Around Twice Per Year

When it comes to insurance, shopping around might be a good idea. Some agents have captive agents that work exclusively for them, which means they don’t show you all available options. You could be missing out on lower rates from other providers or additional coverage from their competitors. Make sure you shop around twice per year – or at least once every six months if your situation is especially urgent – and you could save yourself hundreds of dollars each year on a home insurance policy.

For example, one woman saved $700 by switching from her agent’s captive agency to another independent agency after just one phone call. If you want to learn more about finding an independent agent near you, check out our guide here. And remember: In some cases, it’s better to go with two separate policies than one large umbrella policy, as separate policies are easier to manage and can provide more flexibility (and often better rates) than larger policies.

Let Them Do The Hard Work

If you’re moving into a new home, it might seem like buying home insurance is an ordeal. After all, figuring out how much coverage you need and what deductible is right for you isn’t simple. And if your home hasn’t been built yet, that makes things even more difficult: You won’t have an existing policy to reference or an established history with any insurer. But don’t let those complications scare you off! Home insurance is one of those times when it pays to have a broker on your side. He or she can help make sure you get enough coverage at a price that works for your budget and start saving before move-in day.

Homeowners should shop around and compare home insurance quotes from multiple insurers. Asking friends and family members for recommendations is also a good idea. In fact, according to our survey results, homeowners who asked friends or family members about their experiences with specific companies saved $370 on average compared to those who didn’t ask anyone.

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