There has also been an increase in burglaries. According to the current New York Police Department data, there were 290 burglaries between May 30 and June 5, an increase of 28.3% compared to the same period last year.
These numbers may have you worried about your safety, even when you’re in your own apartment, but it’s important to put these numbers into perspective: Crime rates are still much lower than in the 1990s. Burglaries are down 84 .6% from 29 years ago, according to NYPD data. And the city is always much safer than rural areas, reports Bloomberg.
[Editor’s Note: Realty Bites tackles your NYC rental questions. Have a query for our experts? Drop us an email. We respect all requests for anonymity.]
You may still be wondering if your tenant’s insurance, a guarantee for your apartment and your belongings, will cost more. To find out, The Brick turned to New York apartment insurance experts.
Do crime rates impact apartment insurance costs?
Currently, crime rates aren’t driving up renters’ insurance costs, says Jeffrey Schneider, president of Gotham Brokerage, a New York apartment insurance broker (and sponsor of Brick Underground).
It’s a much different story compared to the 70s and 80s, when crime was notoriously higher. At the time, there were entire neighborhoods in the city that some insurers refused to cover, Schneider says. It was also harder to find coverage for items like jewelry, he says.
But that doesn’t mean the cost of your apartment insurance won’t increase over time if crime continues to rise in your neighborhood. This is because renters insurance costs are calculated by zip code.
If there’s a lot of break-ins, there will be more theft claims reported in your neighborhood, and rates are likely to go up, but it usually takes a few years for that to happen, says Loretta Worters, vice- media president. relationships to Insurance Information Institute, a New York-based insurance association.
What impacts insurance policy rates?
Rising prices for building materials are currently driving up costs, says Schneider. Claims for incidents such as broken pipes, overflows and more frequent storms also lead to higher rates.
The coverage you need is also a determining factor, says Worters. For example, if you need additional coverage for high-value items like jewelry, your policy will cost more. Your claims history is also a factor, she says.
The location of your apartment can also increase your renters’ insurance rates. The distance from a fire department and if you live in a flood zone will also have an impact.
And according to political genius, your credit score also has an effect on your rates.