Why Are Homeowners Insurance Rates Rising in New York (And What You Can Do About It)?

If you’re like many homeowners in New York, you’ve probably noticed your insurance premium climbing—sometimes significantly—over the past year. At VOOMA Insurance, we’ve been getting a lot of questions from clients asking: “Why did my rate go up so much?” and “Is there anything I can do about it?”

This blog is here to unpack what’s happening in the insurance world, how it’s impacting homeowners across upstate New York, and what we’re doing at VOOMA to help protect you—not just on your worst day, but every day.

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The Numbers: What’s Happening with Rates?

Let’s start with the facts.

According to S&P Global and Insurance.com, New York homeowners saw an average 10.4% increase in premiums during 2024. That puts us slightly above the national average, where homeowners in the U.S. saw an average increase of 6–9%, depending on the state and carrier.

But it gets more specific:

• New York Statewide: Home insurance premiums have increased roughly 19% since 2018, according to City & State NY.
• Upstate New York (Albany, Schenectady, Saratoga, Rochester): Average annual increases are in the 10–12% range, according to Policygenius and NerdWallet.
• High-risk areas (coastal/NYC/Long Island): Some homeowners have seen increases of 20–30%, with reports of some renewals doubling.

Even renters and co-op/condo owners aren’t immune. The New York Housing Conference reports that insurance costs for multi-family buildings have surged by over 26% in the past two years, driven by carrier exits and tightening guidelines.

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Why Are Rates Going Up?

Insurance premiums are based on risk—and right now, carriers are seeing more of it. Here’s a breakdown of what’s driving those increases:

1. Inflation and Rebuild Costs

The cost of building materials has skyrocketed since 2020. Lumber, roofing, copper, drywall, and labor are all more expensive—and that means if your home burns down or floods, it costs much more to repair. The National Association of Home Builders (NAHB) reports that the average cost to rebuild has increased by over 33% since 2020.

2. More Frequent and Severe Weather

While New York isn’t known for hurricanes, we’re seeing more windstorms, severe snow, flooding, and ice damage than ever. According to the National Oceanic and Atmospheric Administration (NOAA), the Northeast has experienced a 55% increase in severe weather events over the past 20 years.

Storms that used to happen every 25 years now feel like they happen every 3–5.

3. Carrier Contraction & Reinsurance Costs

A less obvious but powerful trend is that fewer insurance companies are offering home insurance in NY. In coastal states like Florida and California, carriers are dropping out entirely. While New York hasn’t seen exits on that scale, reinsurance (insurance for insurance companies) is getting more expensive, and that cost is passed on to consumers.

According to the New York Department of Financial Services, several national carriers have filed rate increases of 12–22% for 2024 citing reinsurance pressure.

4. Claims Are Bigger and More Frequent

Whether it’s frozen pipes, hail damage, or power surges—claims are getting more expensive. Carriers are paying out more per incident, and that cost is being spread across all policyholders. In fact, Verisk (a major insurance data firm) reports that claim severity has increased over 35% since 2019.

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What’s the Average Premium in Upstate NY?

Here’s what you can expect for typical premiums in the Capital Region and nearby upstate counties:

Location	Avg Annual Premium (2024)	Source
Schenectady	$1,225	NerdWallet
Albany	$1,050	Policygenius
Saratoga	$1,175	Clovered
Rochester	$1,125	Policygenius
Syracuse	$1,000	NerdWallet

These figures assume a $300,000 dwelling, standard coverage, and a clean claims history.

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What Can You Do About It?

While you can’t control the weather or inflation, there are ways to manage your home insurance premium:

1. Let VOOMA Shop the Market for You

We’ve added six new carriers to our lineup this year, and that means more competitive options for you. We believe when insurance companies compete—you win. Our team proactively shops your policy before every renewal and looks for new programs that may better fit your situation.

2. Bundle Home and Auto

Bundling discounts can save you 10–25%, depending on the carrier. If your home and auto aren’t bundled, now’s a great time to revisit that.

3. Increase Your Deductible (Strategically)

If you’re comfortable with more out-of-pocket in the event of a claim, increasing your deductible from $1,000 to $2,500 could bring your premium down meaningfully. We’ll help you model the pros and cons.

4. Add Protective Devices

Alarm systems, leak detection, sump pumps, water sensors, and even smart thermostats can lead to discounts. We’ll help document and apply those for you.

5. Stay Claims-Free

Many carriers offer a discount for no claims in 3–5 years. It may also unlock access to lower-cost policies with more favorable underwriting.

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Bottom Line: Don’t Accept a Higher Rate Without a Conversation

We know that getting a 10% or 20% premium hike in the mail doesn’t feel good. But VOOMA Insurance is here to advocate for you—not the carriers. We’ll review your coverage, shop your policy, and make sure you’re only paying for what you need.

If your rate went up more than 10%, let’s talk. Even if it didn’t, we’ll make sure your policy still fits your goals, lifestyle, and risks.

Call us at (518) 372-5615
Or start online at www.voomainsurance.com