New York Home Insurance

Make sure you are adequately covered, while saving money.

Here's a bit of good news: New York home insurance premiums are far more modest in pricing than the cost of real estate per square foot.

The average New York homeowner's insurance premium is around a third of the average monthly mortgage payment in the state, lower than other populous states like California. That means insurers regard New York as a less risky place to live than California.

A Familiar Process

Applying for home insurance does have quite a bit in common with the mortgage origination process: Both types of providers study the potential threat of losses the applicant represents, and call this risk measurement. The credit score that helps you qualify for a loan also determines what kind of prices you can get on a policy. The real estate's value and its geographical location also factor into the quotes you'll receive from insurers.

But insurance extends into your home, to include personal belongings, your family and guests. So when you decide how much coverage to purchase, think about the value of the things you own and what it might cost to provide medical care if there's an accident on your property.

The crime rate has dramatically subsided in New York City, but nonetheless, theft is still a risk for homeowners, landlords and renters. Luckily, home insurance protects you against losses from burglary, in addition to damage from fire, acts of nature and so on.

So it's essential that you write up a detailed inventory of your personal belongings. Take photographs of everything and note how much you paid for each item. Add up the figures and the resulting number will help guide you in shopping for a good policy.

Standard policies for homeowners and renters often exclude precious items, and you'll have to purchase additional coverage known as a rider. Valuables that require riders include:

1. Antiques
2. Artwork
3. Jewelry
4. Gems
5. Gold
6. Silver

Cut Costs

You may be able to pare down the added cost to cover these goods if you can demonstrate that your dwelling has strong safety and security features. Even if you don't have any of the aforementioned valuables, you can get a better deal on premiums if the home has:

1. Extra locks on the doors
2. Locking windows
3. Metal bars on accessible windows
4. A burglar alarm, the more high-tech, the better
5. Fire alarms in every room.
6. At least one fire extinguisher
7. An indoor sprinkler system
8. An external fire escape

Another way to lower the premium on your insurance is to choose coverage of actual cash values instead of replacement costs. The former would reimburse you for the amount of money that property is currently worth, with depreciation subtracted from the original price paid at purchase. Replacement cost coverage means replacing damaged or stolen property with a brand new item instead of providing reimbursement of the current value. Insurance that reimburses claims based on replacement cost usually have higher prices than policies that reimburse based on actual cost value.

Living in New York gives you a great deal more home insurance options than just about any other state in the country. You benefit from being in the same state as the global capital of the financial services industry. All of the world's best insurers are in your neighborhood.