New York Home Insurance
Insuring your home properly is a big deal, after all, it’s most likely the biggest purchase and asset you will ever have. Being underinsured or missing vital endorsements on your policy can lead to significant financial pain for the owner in the event of a fire, wind damage, water damage, injuries on the property, along with many others.
Unfortunately, we continue to encounter underinsured policies at an alarming rate. Sometimes it’s because the policy hasn’t been looked at in years or even decades. Other times its simply that the issuing agent didn’t take the time to ask questions or accurately assess the risks for that particular property. Reconstruction and repair costs have been skyrocketing just as the rate and claim amounts for premises liability claims.
At NY Insurance Hub, we are specialists and pride ourselves on finding the right coverage for your needs while providing quality service and competitive pricing. We have hand picked the carriers that provide the best homeowners insurance in NY to protect you properly, and better yet, give the best rates for virtually any circumstance. We tailor to your needs and risks and run manual quotes to compare amongst our top-rated carriers to zero-in on the best policy option for you.
Vital Components of Your NY Homeowners Insurance
- Dwelling Coverage– dwelling coverage is the part of your policy that helps to pay for the rebuilding or the repair of the physical structure of your house if it’s damaged by a covered hazard.
- Personal Property – coverage for your belongings, such as furniture, clothing, sporting goods, household items or electronics, in the event of a covered loss
- Liability – this will cover if there is a claim when someone is injured or their property is damaged.
- Medical Expenses – allows for medical payments to others who are injured on your premises. Protects you against liability if a guest is injured at your premises, regardless of who is at-fault.
- Additional Living Expenses –provides the peace of mind and financial assistance you need in the event you are suddenly displaced from your residence due to a covered loss. It covers expenses you wouldn’t ordinarily have if you were living in your own house, such as temporary housing, boarding a pet, additional travel and food expenses, etc.
We service clients in the Albany, Schenectady, Troy, Latham, Clifton Park, Saratoga Springs, Cohoes, Watervliet areas as well as the entire state of New York. Each one of our clients is given a dedicated expert to work together to proficiently address all your concerns.
Best New York Homeowners Insurance Endorsements You May Want On Your Policy
You might be asking if this coverage is important? Yes, it is important to have this “just in case” protection in the event that your initial and subsequent replacement cost estimates are inaccurate to the low side or the cost of labor and materials in your area has experienced a recent and significant increase. The Covid 19 pandemic is a perfect example of this, though there are many. Due to multiple factors causing building supply shortages, the price of lumber and materials skyrocketed in New York State at up to 6 times higher than the pre-pandemic low! At the same time, construction labor also increased significantly. During this period, having your dwelling insured at only 100% of its replacement cost estimate initiated prior to the pandemic, would have been a big risk to the property owner, potentially having to pay 10’s to 100’s of thousands of dollars out of pocket to have their house rebuilt to its original state.
Some carriers also offer Guaranteed Replacement Cost protection, meaning that a house that has to be rebuilt after a total loss due to a covered peril will be replaced to its original state regardless of the price. Even if the cost is double or more. Of course, this is the best replacement cost protection you can get.
For example, relating to a partial loss. Say you have a large tree fall on your house after a wind storm and damages 30 percent of the roof which needs to be replaces. Wind is a named peril under your policy so the claim is covered. But your town building code requires the entire roof to be replaced when 30 percent or more of the roof is damaged and your insurance policy only replaces the entire roof if 50 percent or more is damaged. Without law or ordinance protection the insurance company will pay 30 percent and the property owner is on the hook for the remaining 70% of the total roof cost.
It’s important to note the ordinance or law endorsements are offered in different percentage limits depending on the insurer and are measured as a percentage of the home’s dwelling limit. Common limits are 10%, 25%, and 50% of dwelling limit while a few offer 100% protection. For instance, if you have your house insured for $300,000 with a 10% ordinance endorsement, you have $30,000 in ordinance protection.
Now let’s look at a total loss example and the reason why you might want to have more than 10% ordinance protection. Say your home’s insured at $400,000 and you have a fire that destroys 50 percent of your house while 50 percent remains undamaged. Your insurance will pay for the cost to repair or replace the damaged part of the building. Because 50 percent of the dwelling is destroyed, your city building code requires that the entire structure be torn down before it can be rebuilt. The cost to rebuild, including demolition and debris removal is $400,000. Without ordinance protection, your insurer will pay only $200,000 which would put most people into a very bad financial predicament. What would you do? If you carried 10% ordinance protection, that’s only $40,000 and not enough to help in any meaningful manner. If you had a 50% or more limit, the entire cost would be paid for by the insurer. Yes, it’s a very important endorsement to carry at a sufficient percentage of your dwelling limit.
Below are some common examples of updates your house might need as it pertains to current building
- New wiring
- New Fire safety updates
- New plumbing
- New roofing
- New means of egress
Your policy or home insurance quote should specify where or not ordinance is included and at what percentage it applies.
We often hear from prospective new customers that they’ve never had a water backup issue and don’t need the endorsement, a common misconception. In fact, almost everyone is susceptible to incurring a water backup loss.
Common causes of water flowing back into your home include:
- Old or damaged sewer lines and drains
- Sump pump malfunction or overflow
- Municipal pipeline blockage
- Overgrowth of tree roots
- House gutters malfunction
- Severe rain storm overflow
The typical home insurance policy does not include water backup protection but can be added at set limits from $5,000 up to $50,000 and more depending on the carrier. The average cost is typically anywhere between $25 to $200 per year depending on the limit carried.
Even if you feel you do not need water backup added to your policy, we suggest adding it to your homeowners insurance quote so that you can more accurately assess the risk versus reward. You very well may find that the price is actually quite inexpensive as compared to the averages cost of repairs from water backups.
Unfortunately, standard NY home insurance policies do not cover underground service line repair or replacement which could lead you to paying thousands in repairs out of your pocket. But fortunately this added coverage is a great value endorsement costing as little as $25 per year for a $10,000 coverage depending on the carrier and you can get limits up to $25,000.
Although the service line endorsement varies from insurer to insurer, here are some of the more typical perils covered:
- Weight of vehicles, animals or people
- Rust, deterioration, corrosion and decay
- Damage caused by tree roots
- Mechanical breakdown
Septic systems are not covered.
It’s important to note that not all NY insurance companies offer service line coverage as an add-on to their standard homeowners policy, but you should seriously consider it, especially for the price. Be sure to check your current policy to see if you currently have this protection and if not, get a homeowners insurance quote with this endorsement included for at least a $10,000 limit.
Bundle Discounts – Choosing the Best NY Home Insurance Company
There may also be other coverages that you may want to consider in addition to your basic homeowners policy. These may include, automobile, personal umbrella, motorcycle, RV, boat, among others. We have access to companies that offer the best bundle discounts and make them available to you.
Our agents at NY Insurance Hub can help you understand your other risks and help you evaluate whether you may need additional coverages in your New York home insurance plan.
Here are some additional lines that we service:
- High Value Houses
- Rental Dwellings
- Secondary Residences
So, contact us today at 518-783-0105 to find out more about your options.
Frequently Asked Questions (FAQ) for New York Homeowners Insurance
Contact Us Today to speak with one of our trusted agents about your NY Home Insurance Options & answer any questions you may have and provide you with a quote.