Homeowner’s Insurance – An Easy to Understand Guide for New Homeowners in New York

If you are a new homeowner in the State of New York, there is one thing that you should learn right from the start – homeowner’s insurance is not considered to be a “luxury”, it is an absolute “necessity”.

This type of insurance is designed to protect both your possessions and your home from situations such as destruction, damage, and theft. It is also required by all mortgage companies of borrowers.

In this guide, you will learn about the three basic levels of coverage, how your rate is determined, and how to save money on home insurance.

Types of Coverage

There are three standard levels of coverage when it comes to homeowner’s insurance. These are outlined below:

  1. Actual Cash Value – This covers the overall value of your home and that of your possessions, minus depreciation.
  2. Replacement Cost – This covers the actual cash value and that which you own without taking out for depreciation.
  3. Extended Replacement Value – This is a highly comprehensive coverage that will pay whatever it takes to actually repair or completely rebuild your home. It is advised that all new homeowners go for this type of coverage to properly protect themselves.

Rate Determination

Your credit rating, how many claims you have previously filed, the neighborhood where your home is located, the crime rate, the overall durability of your home, and other types of criteria go in to determining exactly how much you will pay for your homeowner’s insurance.

Given that you are a new homeowner, many insurance companies may look upon you as a high risk; therefore, your rates may be a bit higher at first.

Saving Money on Home Insurance

Homeowner’s insurance is not cheap. It is possible, though, to save a little money on how much you pay towards it. The following tips will help in this area:

  1. Make certain that you have a home security system installed and that you keep up on it. This may help you save quite a bit. In addition to security systems, sprinkler units, weatherproofing, detectors for smoke and carbon monoxide, and similar installations may help you save money.
  2. You may choose to increase your deductible. This will only result in lower payments each month; however, make certain that you are able to meet your deductible at all times so if something should happen, you can deal with it immediately.
  3. Bundle your insurance coverages to save money. For example, you can often bundle car insurance and health insurance under the same company that offers home insurance. By combining multiple policies, the company will likely provide you with a higher discount.

We Can Help

If you are searching for home insurance in New York as a new homeowner, look no further. We here at Modica Associates have you covered! It does not matter if you own a single-family home, a condo, or another type of home, we can help protect it, your finances, and all of your belongings.

To learn more about what we have to offer, you may contact us today by calling: 718-855-1836

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