Top Mistakes to Avoid When Buying Property Insurance in New York

When purchasing property insurance, especially in a place as dynamic and diverse as New York, it’s critical to make informed decisions. The combination of city living, coastal risks, and complex property values makes getting the right coverage both essential and potentially confusing. Many homeowners and landlords make costly errors that can leave them underinsured or overpaying.

At E.A. Funk And Associates Inc., a trusted NY Home Insurance Agency, we’ve helped thousands of clients protect their homes and properties. We know what works—and what doesn’t. In this guide, we’ll walk you through the top mistakes to avoid when buying property insurance in New York, so you can secure your most valuable assets with confidence.

Mistake #1: Underestimating the Value of Your Property

One of the most common errors homeowners make is underinsuring their property. Many people base their insurance coverage on the market value of their home, rather than the replacement cost. The two can be drastically different—especially in New York.

Why it matters: If your property is destroyed by fire, flooding, or another disaster, replacement cost insurance ensures you can rebuild without coming up short. Home Insurance Companies in New York often recommend insuring the full cost to rebuild, not just the price you paid.

How to avoid it: Work with a knowledgeable agent like those at E.A. Funk And Associates Inc. to calculate accurate replacement cost coverage. We use up-to-date tools and local knowledge to estimate construction costs for your neighborhood and property type.

Mistake #2: Ignoring Flood Coverage

Many New Yorkers assume that their standard property insurance policy includes flood protection—it doesn’t. Most standard home insurance policies exclude flood damage, which can be a devastating oversight.

Why it matters: From heavy rainstorms to hurricanes and melting snow, flooding is more common in New York than many realize. And damage from flooding can cost tens or even hundreds of thousands of dollars.

How to avoid it: Ask your NY Home Insurance Agency about adding flood insurance, especially if you live near water, low-lying areas, or regions that have experienced recent weather changes. E.A. Funk And Associates Inc. helps clients obtain policies through the National Flood Insurance Program (NFIP) and private flood insurers.

Mistake #3: Not Understanding Policy Exclusions

Too often, homeowners believe their insurance policy covers "everything"—only to be shocked when a claim is denied.

Why it matters: Common exclusions in New York Property Insurance policies include:

• Floods

• Earthquakes

• Sewer backups

• Mold

• Neglect or lack of maintenance
  

How to avoid it: Read the fine print, and ask your agent to clearly explain exclusions. E.A. Funk And Associates Inc. takes the time to walk every client through what’s included—and what’s not—so you can make informed choices about additional coverage.

Mistake #4: Choosing the Cheapest Policy Without Comparing Coverage

Everyone wants to save money—but cutting corners on insurance can be risky.

Why it matters: Some Home Insurance Companies in New York offer low premiums, but those policies might come with high deductibles, low limits, or poor customer service.

How to avoid it: Work with a broker who can compare multiple policies from top-rated carriers. As an independent agency, E.A. Funk And Associates Inc. is not tied to one provider—we shop around on your behalf to find the best balance of price and protection.

Mistake #5: Not Updating Your Policy After Renovations

If you renovate your kitchen, add a new room, or upgrade your HVAC system, your home’s value goes up—but your insurance might not reflect that unless you update your policy.

Why it matters: In the event of a loss, your insurance payout might fall short of your home's new value if your policy hasn't been updated.

How to avoid it: Always notify your insurance provider after a renovation or major improvement. Our team at E.A. Funk And Associates Inc. conducts annual reviews to help you stay properly insured.

Mistake #6: Overlooking Liability Coverage

Liability coverage is a crucial yet often overlooked part of property insurance. It protects you if someone is injured on your property or if you accidentally damage someone else’s property.

Why it matters: Medical bills and lawsuits can be financially devastating. Without enough liability protection, you could be on the hook for thousands—or more.

How to avoid it: Ensure your policy includes robust liability coverage. Many New Yorkers also benefit from a personal umbrella policy, which adds extra protection on top of your existing liability limits.

Mistake #7: Forgetting About Renters or Tenants

If you own rental property in New York, you need specialized insurance. Standard homeowners policies often do not cover tenant-related damage or income loss.

Why it matters: Landlord insurance (also known as dwelling fire insurance) covers rental income, liability, and damage caused by tenants.

How to avoid it: Ask your NY Home Insurance Agency for policies designed specifically for landlords. E.A. Funk And Associates Inc. offers customizable coverage for single-family homes, multi-units, and apartment buildings.

Mistake #8: Not Working with a Local Insurance Agency

Online insurance companies might seem convenient, but they often lack knowledge of New York’s unique property risks and regulations.

Why it matters: From flood zones to city permitting issues, local insight is essential in making sure your property is truly protected.

How to avoid it: Partner with a local expert like E.A. Funk And Associates Inc.—a long-standing, community-focused NY Home Insurance Agency with nearly five decades of experience serving New Yorkers.

Final Thoughts

When it comes to safeguarding your home or investment property, the right insurance policy makes all the difference. Avoiding these common mistakes can help you secure the coverage you need—without overpaying or leaving yourself vulnerable.

At E.A. Funk And Associates Inc., we don’t just sell policies—we build relationships. We’ll help you understand every part of your New York Property Insurance, customize a plan that fits your life, and stand by your side when it matters most.

Ready to Get the Right Property Insurance in New York?

Contact E.A. Funk And Associates Inc. today or visit our website to get a personalized quote and speak with a licensed agent who knows how to protect what matters most.