DISCLOSURE: AFMC NY (NYS Brokerage License #109913614) is a licensed real estate brokerage only. We are not a licensed insurance agency, broker, or provider under NY Insurance Law Article 21. This page is purely educational. Nothing here is an insurance quote, solicitation, or advice. For actual coverage, contact a licensed New York State insurance agent or broker.
What you need to know
about insurance in NYC.
PMI, homeowners, renters, and title insurance — explained plainly for NYC buyers and renters. We walk you through what each type covers and what to expect at closing.
AFMC NY does not sell insurance. We explain it so you go into your transaction fully informed.
For actual insurance quotes and coverage: Contact a licensed New York State insurance agent or broker. The NY Department of Financial Services (DFS) maintains a licensed agent lookup at dfs.ny.gov/consumers. Your real estate attorney can also refer you to title companies they work with regularly.
Private Mortgage Insurance (PMI)
Required when your down payment is less than 20%
PMI protects your lender — not you — if you default. It is required by most conventional loan programs when the loan-to-value ratio exceeds 80%.
In NYC, where median purchase prices run $785K+, PMI on a 10% down payment typically costs $400–$700/month on top of your mortgage. It does not build equity and cannot be deducted on most federal returns.
PMI automatically cancels once you reach 20% equity (by law, per the Homeowners Protection Act). You can also request early cancellation once you hit 20% through payments or appreciation.
The fastest way to eliminate PMI: put 20% down. Ask your loan officer at afmcmoney.biz about lender-paid PMI structures as an alternative.
NYC-specific: Co-op buyers typically do not pay PMI — co-op financing is structured differently. PMI applies primarily to condo and 1–4 family purchases.
Homeowners Insurance
Required by your mortgage lender before closing
Homeowners insurance (HO-3 for single-family, HO-6 for condos) covers your dwelling, personal property, liability, and additional living expenses if your home becomes uninhabitable.
For a typical NYC property, annual premiums range from $900–$2,500 for a condo/co-op HO-6 policy to $2,000–$6,000+ for a 1–4 family home depending on location, construction, and coverage limits.
Your lender will require proof of homeowners insurance (a binder) before the closing date. Budget for the first year's premium as an upfront closing cost.
Flood insurance is completely separate and may be required if your property is in a FEMA flood zone. Red Hook, Canarsie, Howard Beach, and the Rockaways are common high-risk areas.
NYC-specific: Co-op shareholders insure personal property and liability only — the co-op corporation carries the master building policy. Condo owners need an HO-6 covering interior walls-in. 1–4 family owners need full dwelling coverage.
Renters Insurance
Required by most NYC landlords — and worth having regardless
Renters insurance covers your personal belongings (theft, fire, water damage), personal liability (if someone is injured in your apartment), and temporary housing costs if your unit becomes uninhabitable.
In NYC, renters insurance typically costs $150–$400/year — one of the lowest-cost, highest-value insurance products available.
Most NYC landlords now require proof of renters insurance before or at lease signing. Check your lease agreement for minimum liability coverage requirements (usually $100,000).
Your landlord's building insurance does NOT cover your belongings. If a pipe bursts upstairs and destroys your furniture, electronics, and clothing — that is your loss without renters insurance.
NYC-specific: NYC renters face higher theft and water damage risks than suburban renters. If you have high-value items (jewelry, art, electronics), ask your insurer about a scheduled personal property rider.
Title Insurance
One-time closing cost — protects your ownership rights permanently
Title insurance protects against defects in the property's title history — unpaid liens, forged deeds, missing heirs, survey errors, or recorded easements that were missed during the title search.
In New York, title insurance rates are set by the state. For a $785K purchase, expect to pay approximately $3,000–$5,000 total for both the owner's and lender's policies combined.
Your lender requires a lender's title policy. The owner's policy is technically optional but strongly recommended — it protects your equity for as long as you own the property.
Unlike other insurance, title insurance is a one-time premium paid at closing. There are no annual renewals.
NYC-specific: NYC closings involve multiple parties (buyer's attorney, seller's attorney, bank attorney, title closer) and are more complex than in many other states. Your real estate attorney typically coordinates title insurance ordering.
Other NYC closing costs to budget.
Insurance is one piece. Here are the other line items that typically surprise first-time NYC buyers.
NYC Transfer Tax
1% under $500K · 1.425% over $500K (co-ops: paid by buyer)
NYS Transfer Tax
0.4% of purchase price (paid by seller in standard transactions)
Mansion Tax
1%–3.9% on purchases $1M+ (paid by buyer)
Attorney Fees
$1,500–$3,500 typical for NYC real estate closings
Bank Attorney
$800–$1,500 (your lender's attorney — paid by you)
Home Inspection
$400–$800 for single-family; often waived on co-ops and condos
Co-op Application Fees
$500–$1,500 for board package processing
Appraisal
$600–$1,200 ordered by your lender
Find a Licensed Insurance Agent in New York
The NY Department of Financial Services (DFS) maintains the official public database of all licensed insurance producers in New York State. Verify any agent before you buy coverage.
NY DFS Consumer ResourcesWant a full closing cost breakdown?
AFMC NY walks every buyer through a complete closing cost analysis before you make an offer — including estimated insurance costs, taxes, and fees. No surprises at the table.