New York Homeowners Pay Some of the Lowest Insurance Costs In The Country, But Severe Flood Risk Will Soon Push Prices Even Higher

New York homeowners continue to pay relatively low insurance costs compared with many other states, even though the state has dense coastal communities exposed to flooding and storms.

While premiums are climbing nationwide, particularly in Gulf Coast states, new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that New York remains more affordable than many might expect.

New York’s Insurance Costs Stay Affordable

According to the American Community Survey (ACS) data from the U.S. Census Bureau , New York homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage average the same $1,000–$1,499. Overall statewide costs also fall into the $1,000–$1,499 range.

New York has 4,252,571 insured homeowner households in total—2,416,320 with a mortgage and 1,836,251 without. Among mortgaged owners, 198,833 pay less than $100 annually and 195,166 pay $4,000 or more. Among those without a mortgage, 313,575 pay less than $100 and 133,653 pay $4,000 or more.

Compared with nearby states, New York is among the most affordable. New Jersey homeowners with a mortgage also average $1,000–$1,499, with similar patterns. Pennsylvania mortgage holders fall into the same category, while non-mortgaged homeowners average slightly less at $800–$999. Connecticut and Massachusetts, however, are more expensive, with mortgaged owners paying $1,500–$1,999. Rhode Island also trends higher. This positions New York as one of the more affordable large states in the Northeast.

Climate Risks Across the Region

While today’s insurance bills are relatively moderate, New York’s exposure to climate risk tells a different story. The Realtor.com 2025 Climate Risk Report highlights that the New York-Newark-Jersey City metro has the highest dollar gap in the nation—$95.3B—between homes officially in FEMA flood zones and those actually facing severe flood risk.

In terms of sheer value at risk, New York ranks second nationally, with $295.3B in homes exposed to severe or extreme flood risk, representing nearly 10% of the metro’s total home value.

Wind exposure is also a major factor. The report finds $545.6B in New York homes face severe or extreme hurricane wind risk, the third-highest among U.S. metros. That exposure comes with the added challenge of hurricane deductibles—homeowners may be responsible for up to 5% of their dwelling’s insured value before coverage kicks in, leaving a $400,000 home with a $20,000 out-of-pocket cost.

“Understanding climate risk in the housing market is essential, as these challenges not only affect residential safety but also influence property values, insurance costs, and overall market stability,” said Realtor.com economist Jiayi Xu.

A National Affordability Challenge

Even though New York homeowners pay relatively low premiums, affordability remains a growing concern across the country. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already faced challenges renewing or obtaining coverage.

These rising costs are reshaping how buyers approach the housing market. Nearly 30% of homebuyers said they had completely changed the areas where they were searching due to insurance concerns, while another quarter said they had overhauled their strategies altogether. Even more troubling, 58% of homeowners nationwide said they would consider dropping insurance if costs rose too high, with younger generations the most likely to take that risk.

For New York households, relatively low statewide averages provide some relief compared with national hot spots. But with large coastal populations and storm risks, affordability pressures could grow if insurers raise rates in the years ahead.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.