Tenants should consider getting renters insurance in New York as it can help them protect their valuable property from theft and damage at a low rate. MoneyGeek rated the leading renters insurance companies across New York to help you find great options at the best price. Our scoring system analyzed the factors of affordability, financial strength and customer service quality so you can find suitable coverage.
The Best and Cheapest Renters Insurance in New York for 2021: Rankings, Reviews and Rates
Cheap Renters Insurance Companies in New York
Cost is a a major factor for New Yorkers shopping for renters insurance. Our research found that Lemonade is the most affordable company in the state. A Lemonade policy costs an average of $61 per year, while the next most affordable insurer in New York is State Farm, with an average annual rate of $125.
These prices are for a plan with personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500. The premiums are based on costs obtained from multiple ZIP codes across New York.
Personal Property Coverage:
Scroll for more
- CompanyAmountper year
Best Renters Insurance Companies in New York
Apart from price, consumers also assess a provider’s financial stability. They want the assurance that the carrier will pay out their claim without hassle.
MoneyGeek determined the best renters insurance companies in New York based on unique pricing data, AM Best’s financial stability ratings and J.D. Power’s customer service scores. The analysis shows that Lemonade is the top renters insurance firm in the state with a score of 88 out of 100, followed by State Farm with a score of 80.
Lemonade's unique features are “Zero Everything” and extra coverage. Zero Everything is a policy modification that lets you pick a deductible of zero in exchange for paying a higher premium. Extra coverage is a policy add-on that enables you to get additional protection for your valuable possessions worth over $1,500, such as art, jewelry and bicycles.
Apart from standard coverage, State Farm offers business property insurance, additional liability coverage, identity restoration insurance, earthquake insurance, pet insurance and incidental business liability insurance. State Farm has about 19,000 local offices coast to coast. It is a Fortune 100 company, so its financial stability is unquestioned.
Travelers’ renters insurance policy covers everything from medical payments and living expenses to property damage and bodily injury liability. It offers optional riders and attractive discounts to financially savvy consumers. Travelers boasts excellent customer service scores and financial stability ratings.
Allstate offers optional features such as identity theft protection, pet insurance and personal umbrella policies. You can qualify for rebates such as multi-policy, claims-free, safe home, retiree and auto-pay discounts.
On top of standard coverage, Nationwide presents optional add-ons such as theft extension, valuables plus, water backup and earthquake coverage. You can ask for a free quote over the phone or online. Nationwide provides discounts for being claim-free, installing a safety device or bundling multiple policies.
Largest Renters Insurance Companies in New York
It’s smart to select a policy from a large company, as they tend to be more financially stable, so you can get the assurance that they will pay your claim. In New York, the five biggest insurance firms in terms of market share are Allstate (14%), State Farm (13%), Chubb (11%), Travelers (8%) and Liberty Mutual (8%). These five providers issue about 54% of the renters insurance plans in the state.
- CompanyMarket Share
Average Cost of Renters Insurance in New York
renters insurance is equal to the average.
You can improve your chances of saving money by comparing renters insurance quotes from multiple providers. For example, in New York, you can save over $80 a year by choosing the cheapest carrier, Lemonade, instead of the most expensive option, Farmers. This means savings of about $7 per month.
The average cost of renters insurance in New York is $124 per year, $35 less than the national average of $159. That works out to an average monthly cost of around $10, $3 less than the monthly U.S. average. These prices are for a consumer who selects personal property coverage of $20,000, liability coverage of $100,000 and a deductible of $500.
What Factors Impact Renters Insurance Cost in New York
The following factors significantly impact the renters insurance premium you need to pay in New York.
- Location: Your residential neighborhood has a bearing on your premium because areas with a high risk of crime or severe weather generally have a higher rate.
- Deductible: The insurance carrier applies a fee called a deductible to process your claim. If you select a plan with a lower deductible, your premium will be higher because the provider needs to pay more to replace your items.
- Coverage Amount: It’s advisable to do a home inventory to understand the value of your possessions. You can then get the perfect amount of coverage for your needs.
- Credit Score: In New York, insurance companies use your credit to assess the probability you’ll make a claim. Carriers have analyzed that those with poor credit scores are more likely to file claims. Therefore, insurers charge them higher premiums. Conversely, if your credit score is strong, you can get a discount on your renters insurance.
- Actual Cash Value (ACV) vs. Replacement Cost Value (RCV): Insurance companies consider the RCV or ACV of your items while paying claims. RCV plans will reimburse you for a new item of the same kind and quality. These policies cost more because they offer higher payouts. ACV packages take into account the depreciation of your goods over time, so they typically pay less for used possessions.
Renters Insurance in New York: What You Need to Know
Investing in renters insurance in New York is a wise decision, as you can get protection for your valued belongings at affordable rates.
About 43% of the New York population are renters, and the rent price in the state is $1,309 per month on average. The average cost for a standard renters insurance package with $20,000 in personal property coverage, $100,000 in liability coverage and a $500 deductible is roughly $10 per month or 0.79% of the typical rental price.
What Renters Insurance Typically Covers in New York
Before you buy renters insurance in New York, you should ideally learn what the policy does and does not cover. Most plans offer the basic coverages of personal property, additional living expenses, medical payments and liability insurance.
In New York, personal property insurance typically covers many damages from natural disasters such as thunderstorms, hurricanes and others.
What Renters Insurance Typically Does Not Cover in New York
Renters insurance in New York generally covers many emergencies but excludes the following relatively common events.
- Home Structure: Damage to the building’s frame and structure is excluded. Obtaining coverage for the building structure is your landlord’s responsibility.
- Flooding: Certain water damage is reimbursed, but not damage due to flooding. If you live in an area prone to flooding, you should get adequate coverage by buying insurance through the National Flood Insurance Program (NFIP).
- Other Exclusions: Standard renters coverage excludes jewelry and other valuable items that exceed property limits, damage to your car, your roommates’ property and damage from earthquakes. You can consider getting add-on coverage for these issues.
Read your renters insurance policy carefully to find out what it covers so you can make an accurate claim.
FAQs About Renters Insurance in New York
Renters Insurance in New York Analysis: Methodology
MoneyGeek analyzed renters insurance premiums from eight of the top insurance companies in New York provided in partnership with Quadrant. Our analysis includes quotes from ZIP codes across New York. Quotes were gathered for policies with personal property coverage of $20,000, $50,000 and $100,000, liability coverage of $100,000 and a deductible of $500.
About the Author