By: Ramu Garuda June.12, 2019
Gavop conducted a recent study on homeowners insurance premiums in New York and found that the state average at $1,137 is relatively less than the national average of $1,288. Gavop also ranked the 41 cities of the state according to their average yearly cost for home insurance.
The table below shows the yearly cost along with the average home value—an important factor for deciding home insurance rates—for all these cities.
|City||Average Yearly Cost of Home Insurance||Average Home Value|
|New York City||$2,483||$587,370|
The table shows that the increase in insurance rates is almost directly proportional to the increase in home value, although home value is not the only factor that determines insurance rates. Richmond Hill with an average premium of $3,247 is the most expensive city, followed by Mount Vernon at $3,211, Huntington at $2,818, Rockville at $2,583, and New York City at $2,483.
However home value is not the only factor that influences home insurance. Some other key factors are listed in a report by Allstate – the home insurance provider with the largest market share in the state. These include deductible, home and property values, claim history, distance from the fire department, the condition of the plumbing and electrical systems, and vulnerability to natural disasters. Deductible is the amount that homeowners agree to pay out of their pockets in the event of a claim. The home and property value decide the coverage limits that one agrees to, in the insurance plan. Coverage is the total amount of expenditure that insurance providers are willing to incur toward your claim. That value is often decided by the replacement value of your home, which is in turn determined by your present home value.
The location of your home is also an important factor in deciding your premium, your median home value, and the probability of your home being affected by natural disasters, such as hurricanes, earthquakes, floods, volcanic eruptions, and wildfires. Gavop identified the 10 biggest cities in the state by population, and calculated the median home insurance in those places, as outlined in the below infographic.
New York city, the biggest city in the state reports a median premium of $2,483, higher than the state average by a margin of almost $1,150. In Buffalo, the second largest city in the state, homeowners pay an average premium of $1,222. Rochester, at third in the list, reports a median that is almost on par with the state average, greater by just $1, at $1,138.
One of the most expensive cities—Mount Vernon (premium listed above)—comes at number seven in the list of the most populated cities. The next most expensive city is New York followed by New Rochelle, at number 5 in the list, with a median premium of $2,321. The table below ranks the cities by population and lists the median premiums in those cities.
|NY Largest Cities||Premium||Population|
|New York City||$2,483||8,175,133|
Ramu is a research analyst with over 9 years of analytics & research experience. Prior to joining the company, he worked with some of the prominent consulting and market research firms in India, including Pride Technology (Supporting consulting projects to PWC), RR Donnelly, and The Hackett Group. His skills include company profiling, benchmarking, data and trend analysis, industry analysis, and report writing across the industries. Ramu holds a Master’s degree in Finance and Marketing. He also has a bachelor’s degree in Biotechnology.