Guide to New York Homeowners Insurance
How to Purchase an Insurance Policy for a Home Condo or Apartment
Aug 10, 2009
When it comes to purchasing homeowners insurance many New Yorkers are not quite sure how much to purchase, which overages to buy and where to find the most competitive pricing. Fortunately, with their Consumer Shopping Guide for Homeowners and Tenants Insurance booklet, the Insurance Department answers all such questions and more.
Homeowner Specific Insurance Terms
After a welcome letter from the Superintendent, Eric R. Dinallo, the pamphlet begins by explaining basic insurance terms that every homeowner or renter should learn when shopping for insurance. The Consumer Shopping Guide identifies the parties involved during the process of securing an insurance policy.
Unfortunately, many insurance seekers do not fully understand the relationship between an insurance agent, the insured and the insurance company. Many policy holders are not sure whether the insurance agent represents them (the insured) or the insurance company.
The booklet clearly explains the difference between a direct writer, an independent insurance agent and an insurance broker . In a user friendly fashion, it details the consumer's relationship with each.
Perils Covered and Types of Homeowner's Insurance Policies Available
Not all consumers need the same type of insurance coverage therefore; there are different types of insurance policies to cover the ranging consumer needs. From the HO-1 (basic insurance policy) to the comprehensive HO-5, and the HO-8 (actual cash value policy) and the condo owner's policy (HO-6) the insured perils and policy forms are explained.
Having such an explanation makes it easier for New York tenants, condo owners and homeowners to make a decision as to which type of coverage will best suit their needs.
Determining How Much Insurance to Buy
The pamphlet spends ample time explaining how policyholders should determine how much insurance they need buy. Offering sound advice such as analyzing and inventorying household contents in addition to obtaining the replacement cost of the structure, consumers have a sound basis for coming up with insurable value.
After coming up with an insurable value, the guide explains the coinsurance clause and how losses are calculated on policies written with a coinsurance requirement.
Specialty Coverages and Endorsements
As mentioned earlier, policy holder needs vary from risk to risk. Taking that into consideration, the Consumer Guide spends some time explaining special coverage endorsements that some households may require. Coverages such as home day care coverage, home computer coverage for business computers and workers compensation insurance for hired help offer insurance protection in the event of a loss.
Insurance Companies and Insurance Rates
Another important factor when it comes to determining which homeowner policy to purchase is premium. The consumer guide contains several charts outlining average premium broken out by the various New York counties and territories. Consumers must keep in mind that rates are subject to change, but it does give the buyer an indication of how much she may have to spend for homeowners insurance.
Informed New York Consumers
New Yorkers should spend a little time reviewing the contents of the 61 page Consumer Guide before seeking insurance. Informed consumers make better business decisions. No one wants to find out after a loss that she didn't purchase the right type and right amount of homeowners insurance.
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