Best Landlord Insurance in New York
- Best Landlord Insurance in New York
The New York City rental market is hectic, as pricing is always in contention while demand remains high year-round. Outside of the Big Apple, where 60% of the state’s population resides, renting can be a much more affordable living option or a good opportunity to escape the city temporarily.
Rental property owners need protection no matter where they are in the state. Landlords invest time and money into their properties, so it’s wise to safeguard your investment with landlord insurance.
We break down New York landlord insurance below so you can find the right policy for your rental property.
How Much Is Landlord Insurance in New York?
The average landlord insurance cost in New York is about $1,337 per year on a $250,000 home, $1,787 per year on a $300,000 home, and $2,494 yearly on a $400,000 house.
Compared to nearby places, landlord insurance in New York state is slightly more expensive than in Pennsylvania and pretty similar to going rates in Massachusetts.
Generally, landlord insurance rates are about 15% to 25% higher than homeowners insurance premiums on the same properties. This is because landlord insurance, also known as rental property insurance, covers a place the policyholder often doesn’t live in, making it riskier. Carriers can’t account for tenant behavior like they can for homeowner behavior, especially if the landlord lives off-premises.
Look below at average rates in New York for some common coverage amounts.
Average Cost of Landlord Insurance in New York
Cost of House
What Does Landlord Insurance in New York Cover?
Landlord insurance in New York protects a variety of properties in a variety of ways. A residential landlord can own several types of rentals, from a sole condo unit to a single-family seasonal rental to a whole apartment building.
Due to the diverse nature of ownership, landlord insurance must be able to cover many home types. These are the common ones:
- Single-family homes
- Multi-family homes (duplexes, fourplexes, etc.)
- Apartment units and buildings
- Condo units and buildings
A landlord insurance plan can protect these residences with the following coverages.
Dwelling coverage in landlord insurance financially protects the structure of the rental property. This includes the roof, walls, flooring, countertops, balconies, pipes, and more.
Other structures coverage accounts for the fixtures and features on your property not attached to the main house. These can include detached garages, driveways, carports, fences, sheds, gazebos, and pools.
Personal Belongings Coverage
Personal property coverage in landlord insurance covers items you might keep at your rental property, such as lawn equipment, from damage or theft. This won’t cover any of your tenant’s belongings.
Landlord Liability Coverage
Landlord liability coverage can cover medical expenses and legal fees that arise after someone gets hurt on your rental property and pursues you for the damages.
Loss of Income Coverage
Loss of income coverage kicks in if your tenants have been forced to move out after covered damage to your rental property, such as a major fire. This coverage can help pay the rent payments you’re missing out on while your tenants are displaced.
Types of Rental Property Insurance in New York
Only some rental property policies will come with all the above coverages. Since landlord situations and properties differ so much, companies offer different plans to match consumers’ needs.
Landlord insurance is officially a dwelling fire policy (DP), a versatile type of home insurance that can cover investment properties, rental properties, vacant homes, and more. There are three types of dwelling fire policies.
DP-1 Insurance in New York
DP-1 plans are the most basic type of landlord coverage you can get. DP-1s offer the least protection; they usually exclude liability coverage and guard against the fewest sources of damage. DP-1s typically cover eight perils, most notably wind and fire damage.
DP-1 policies also cover property damage at actual cash value, meaning your provider will deduct depreciation before reimbursing you for all property damage. This lowers payouts. As a result of their limited coverage, DP-1s are the cheapest landlord insurance in New York you can get.
DP-2 Insurance in New York
DP-2s usually cover 18 named perils, including theft, vandalism, falling objects, and some water damage. They also cover property losses at replacement cost, which means your carrier will reimburse you for what you paid for an item during a claim, regardless of when it was purchased.
DP-3 Insurance in New York
DP-3 insurance in New York is the most comprehensive rental property coverage you can get. It typically includes liability and personal property coverage (if needed) by default, as well as the rest of the previously described coverages.
DP-3 insurance in New York covers property losses at replacement cost and covers a greater number of damage sources than DP-2s. A DP-3 policy would be your most expensive choice.
How to Get the Best Landlord Insurance in New York
Knowing which landlord policy to choose requires an understanding of your budget and coverage needs. Your needed coverage amounts will depend on the features of your rental property and your relationship with it.
You may be able to drop some areas of coverage if they don’t apply to your rental property, saving you money on premiums. For example, plans for condo or apartment units may not need other structures coverage. Or, you might feel comfortable dropping liability coverage if you know your rental won’t have tenants for a while.
If your budget allows for more protection, you probably can’t go wrong with a DP-3. You can also purchase endorsements, which are optional coverage add-ons that increase protection from commonly excluded perils. Many companies offer water backup coverage, ordinance or law coverage, and extended replacement cost coverage.
You may not be able to get a DP-3 if your rental property is vacant for extended periods, like with second or vacation homes that you rent out part of the year. For these, you might want a DP-2, which includes theft and vandalism coverage – important protection if you’re an out-of-state landlord that can’t always keep an eye on your property.
Regardless of the situation, price is a primary concern for most people. The best landlord insurance in New York for you must be at a price you can afford. You should always compare a few quotes before buying to know you’re getting a good deal.
Companies With the Cheapest Landlord Insurance in New York
New York Central Mutual (NYCM) and State Farm tend to offer some of the cheapest landlord insurance in New York. Your exact premiums will depend on your property’s value, location, and more.
We analyzed some of the top landlord insurance companies in New York for average premiums. Look below at the results for two different coverage levels.
Average Landlord Insurance Cost in New York
The average difference in landlord premiums between $200,000 and $300,000 homes in the table was about $202, which isn’t too steep of a price increase. But, policy costs ranged up to $763 per year on $200,000 homes and $600 on $300,000 homes, which underlines the need to compare policies from multiple providers to find cheap landlord insurance in New York.
Getting Landlord Insurance in New York City
New York City is the most expensive city in the nation. Landlord insurance rates in New York City will likely be more costly than most places in the state since property values are so high.
Nearly half of the housing units in New York City are rentals. Due to the high property values in the city, landlord premiums will likely also be very high.
Rates will vary based on location in the city. For instance, rates in Manhattan will likely be higher than rates in the Bronx. Premiums will also vary based on property type, age, local crime rates, and more.
What to Know About Landlord Liability Claims in New York City
Landlords have an obligation to keep their rental property reasonably safe. With the high demand and volume of renters in New York City, injuries are bound to happen. Rental property insurance can protect you from landlord liability claims in New York City.
Many rentals in the city are older and contain stairs. Rain, ice, and snow are also prevalent in the winter, making walking more dangerous. These factors can easily contribute to landlord liability claims in New York City.
Accidents can happen on even the safest and most well-maintained properties. It’s essential to have liability coverage in your rental property insurance in New York City to protect your finances.
Landlord liability coverage can cover the medical expenses of your injured tenant or guest, ranging from X-ray and surgery costs to ambulance rides and stitches. It can also cover lost wages, legal fees, and costs associated with pain and suffering.
Factors Affecting Rental Property Insurance in New York
Insurers examine several variables regarding you and your property to determine premiums that are financially viable on their end. Some of the most essential factors that impact landlord insurance rates are:
- The amount of coverage you get
- Property location
- Property age
- Property features
You’ll pay more for the more coverage you get, which is sometimes out of your control. The amount of dwelling coverage in your landlord policy is dictated by your rental’s replacement cost, which is the cost of rebuilding from scratch based on materials and labor only.
Larger, more expensive properties have higher replacement costs, needing more coverage, thus costing more money to insure. Additionally, policies with other structures, liability, and personal property coverage will have higher premiums than landlord policies without them. DP-3s will likely always be more costly than DP-1s, for instance.
Your deductible also influences your premiums. Your deductible is the amount you must pay when filing a claim before your insurer covers the rest of the bill. When getting any rental property insurance policy, you often have deductible options between $500 to $2,000.
Choosing a higher deductible means you’re willing to pay more out-of-pocket before your insurance company steps in to help. Carriers reward customers who choose higher deductibles with lower premiums.
Features about your rental property itself will also affect landlord insurance cost in New York. Living in a flood zone or high-crime area can raise premiums since your house is more likely to sustain a property loss. Similarly, homes on or near the Atlantic coast in New York may be more prone to wind damage and can have higher rates and separate hurricane deductibles.
On the other hand, living near a fire hydrant or station can lower rates. You can also wind-mitigate your property to receive discounts on your premiums.
Insurers will also consider other factors like your rental property’s age, roof condition, vacancy, and more. Older properties tend to have higher premiums. Homes serving as short-term rentals (six-month or fewer leases) may also have higher premiums than long-term rentals.
Is Landlord Insurance Required in New York?
Landlord insurance isn’t required by law in New York, but mortgage lenders require insurance coverage on properties with loans. If your rental property has a mortgage, you need landlord insurance.
When giving home loans, mortgage companies mandate insurance coverage on properties. This protects their (and your) investment in the home. If the home sustains devastating damage, the lender can recoup the money they put up for the property through the insurance provider.
Since homeowners insurance won’t cover properties with tenants, you need landlord insurance. If you don’t maintain landlord insurance on your mortgaged property, the lender can force-place coverage on you. Force-placed policies are more expensive and less protective than the coverage you can find on your own.
How to Get New York Landlord Insurance Quotes
When getting landlord insurance quotes in New York, you should always compare rates from several carriers. It’s the best way to guarantee you’re getting the best deal. Clovered is an independent insurance agency that makes comparing policies easy.
In seven years of business, we’ve helped over 30,000 policyholders with their property coverage needs. We’d be happy to help you with your New York rental property insurance quotes.
You've worked hard to buy your rental property. Protect it with a custom policy at an affordable price.
The editorial content on Clovered’s website is meant to be informational material and should not be considered legal advice.