Nys Insurance: Covering Your Assets

In New York State, drivers are required to have car insurance, and proof of coverage must be carried at all times while driving. The minimum insurance requirements in New York include liability coverage, uninsured/underinsured motorist coverage, and personal injury protection (PIP). Liability coverage pays for bodily injury and property damage caused to another driver or their passengers in an accident where the policyholder is at fault. Uninsured/underinsured motorist coverage pays for injuries and lost wages incurred by the policyholder or their passengers when hit by an uninsured driver who is at fault. PIP provides coverage for medical costs, rehabilitation expenses, and lost wages resulting from an accident, regardless of who is at fault. While New York requires more types of coverage than many other states, the limits are quite low, and increasing coverage limits is recommended to provide greater protection for assets.

Minimum auto insurance requirements

In New York State, drivers are required to carry car insurance to be legal on the road. The minimum insurance requirements in New York are as follows:

• No-Fault (Personal Injury Protection) - to pay medical expenses, lost earnings, and other reasonable and necessary expenses, such as household help and transportation to medical providers, for a driver or passenger injured in, or a pedestrian injured by, your car. The minimum coverage limit for this is $50,000 per person, or $2,000 in the event of death.
• Liability - to protect against the harm your car, or any car you drive with the owner's permission, might do to other people and their property. The minimum liability coverage limits are $25,000 for bodily injury (not resulting in death), or $50,000 for any injury resulting in death, sustained by any one person in any one accident; $50,000 for bodily injury (not resulting in death) sustained by two or more persons in any one accident, or $100,000 for any injuries resulting in death sustained by two or more persons in any one accident; and $10,000 for property damage per accident. These minimum liability limits in New York are sometimes referred to as "25/50/10".
• Uninsured Motorists - to protect against the injuries you, your family or your passengers might suffer in a hit-and-run accident or in an accident with an uninsured vehicle. The minimum coverage limits for this are the same as for liability insurance.

In addition to the above, drivers in New York are required to carry proof of insurance while driving.

Homeowner and tenant insurance

Basic Homeowner Policy (HO-1)

This policy generally insures your home and contents against only the following perils:

• Fire, lightning, and smoke damage
• Vehicle or aircraft damage
• Riot and civil commotion
• Vandalism and malicious mischief
• Damage to property of others
• Personal property (at home and away)
• Additional living expenses (if forced to live away from home temporarily)

Broad Form Policy (HO-2)

This policy generally insures your home and contents against the perils in the Basic Policy, as well as:

• Weight of ice, snow, and sleet
• Damage resulting from an accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire sprinkler system
• Freezing of plumbing systems
• Electrical damage to appliances

Special Form Policy (HO-3)

This is the most widely used policy by homeowners insurers. It covers your home for all risks of physical loss except those specifically excluded in the policy, such as flood, earthquake, war, or nuclear accident. If you want to take out a mortgage on your home, your lending institution may require you to purchase this type of policy.

Comprehensive Form Policy (HO-5)

This policy generally protects your home against the same perils as the Special Form Policy, and also typically covers your personal possessions for all risks of physical loss except those specifically excluded.

Tenants and Cooperative Policies (HO-4)

Tenants and cooperative policies are available that insure against damage to the contents of a unit and for personal liability of the insured when people are injured or sustain property damage arising from the insured unit. It is generally not necessary for a tenant to insure the building they live in, as that is the building owner's responsibility.

Condominium Policies (HO-6)

Condominium owners policies generally provide contents and property coverage for any alterations, appliances, fixtures, improvements, and interior walls within the insured unit. Condominium buildings and their common areas are typically insured through policies issued to the condominium owners' associations.

It is important for homeowners and renters to understand their insurance options and purchase the policy that best meets their needs. When shopping for insurance, it is recommended to get references and talk with relatives and friends about their insurance experiences, as well as to compare the offers of multiple insurance agents or brokers. Existing insurance policies should also be reviewed periodically to ensure they provide adequate coverage.

No-fault insurance

• Medical and Rehabilitation Expenses: No-fault insurance covers reasonable and necessary accident-related medical and rehabilitation expenses, including hospital visits, psychiatric care, physical therapy, and long-term professional health services.
• Lost Wages: If you are unable to work due to your injuries, no-fault insurance provides coverage for 80% of your lost income, up to a maximum of $2,000 per month, for up to three years from the date of the accident.
• Other Necessary Expenses: No-fault insurance also provides a daily stipend of up to $25 to cover other reasonable and necessary expenses, such as household help and transportation costs to and from medical appointments, for up to a year after the accident.
• Death Benefit: In the unfortunate event of a death resulting from the accident, no-fault insurance includes a $2,000 death benefit payable to the estate of the deceased individual, in addition to the basic no-fault limit.

It is important to note that no-fault insurance does not cover vehicle repairs or damage to another party's motor vehicle or property. It is also important to review your insurance policy carefully, as there may be exclusions or limitations on benefits. For example, no-fault insurance does not cover motorcycle passengers, owners of uninsured vehicles, or individuals who are not residents of New York.

To file a no-fault insurance claim in New York, you must submit a written claim to the insurance company that covers the car involved within 30 days of the accident. This deadline can be extended in rare cases if you can provide a valid reason for the delay. The claim should include as many details as possible about the accident, including the date, time, circumstances, and comprehensive information about each person injured.

Liability insurance

The minimum liability coverage limits in New York are $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $10,000 in property damage per accident. These coverage limits are often written as 25/50/10.

It is important to note that liability coverage never pays for your injuries or property damage, so you may want to consider additional coverage options for further protection. Increasing your insurance limits is highly recommended, especially if you have assets such as a house.

In addition to liability insurance, New York also requires personal injury protection (PIP) and uninsured motorist coverage. PIP provides coverage for medical costs that you and your passengers incur in an accident, regardless of fault, up to a minimum of $50,000 per person. Uninsured motorist coverage pays for injury and lost wages that you or your passengers may suffer if you are hit by an uninsured driver who is at fault, with minimum coverage limits of $25,000 per person and $50,000 per accident.

If you are considering purchasing a car insurance policy in New York, it is important to understand the state's requirements and choose a policy that provides adequate coverage for your needs.

Uninsured motorist coverage

In New York, uninsured motorist coverage is an important safeguard against the financial risks of an accident. While it may be tempting to opt for the minimum coverage limits to save on car insurance costs, doing so leaves you more exposed financially in the event of an accident.

In addition, New York is among the top states in the nation for hit-and-run accidents. From 2010 to 2019, the state had the four highest numbers of hit-and-run accidents. If you're unlucky enough to be involved in a hit-and-run, uninsured motorist coverage can provide you with compensation for your injuries or damages.

It's worth noting that uninsured motorist coverage only applies to bodily injury and does not cover auto body damage to your car or damage to other property. However, you can purchase supplementary uninsured motorist coverage, or SUM, as an optional add-on to your policy. This coverage will protect you against underinsured drivers and will pay for non-economic losses, such as loss of enjoyment of life.

While New York State requires a minimum of $25,000 in uninsured motorist coverage, insurance experts recommend carrying higher levels of coverage to adequately protect yourself and your family.

Frequently asked questions