Skip to main content
Fulltext search
FILTER RESULTS BY:
RECOMMENDED IN RENT
Moving to NYC after college? Here's how to find a rental apartment
RECOMMENDED IN BUY
How buying real estate in NYC is unlike anywhere else
RECOMMENDED IN SELL
A guide to using a no-fee renovation loan from a NYC real estate firm
RECOMMENDED IN IMPROVE
How to make your NYC renovation more pet-friendly
Brick Underground BRICK UNDERGROUND
BRICK UNDERGROUND
BOARDS & BUILDINGS
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
    Haley and JP move to Prospect Lefferts Gardens
    New Construction + Condos
    From Prospect Heights to Prospect Lefferts Garden: We wanted three bedrooms so we could each have a home office
    An image of the top of a brick New York City apartment building, including its parapet.
    Design + Architecture
    Parapet inspections: What NYC boards and building owners need to know about Local Law 126
    one-bedroom condo at 702 Hancock Street
    The Search
    7 reasons why ground-floor apartments are desirable—instead of dealbreakers
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
    Midtown Manhattan seen from Roosevelt Island tramway
    The Market
    Manhattan median rent spiked 6 percent to $4,500 in April
    Tenant protest outside Rent Guidelines Board preliminary vote
    Affordable Housing
    Rent Guidelines Board intends to raise stabilized rents for a fourth time
    A beautiful pink flowering cherry tree next to an old brick residential building with a fire escape in Astoria Queens New York during spring
    The Search
    A wet, hot, broker fee-free summer? A major change to rental broker fees is supposed to start in June
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
    Madison avenue and East 67th Street, Manhattan, New York City
    Sell
    Median sales price for Manhattan co-ops and condos jumps to $1,165,000
    new condo building and older co-op buildings in Prospect Heights, Brooklyn
    Sell
    Brooklyn median price nears $1 million but the spring market is a question mark
    View of NYC condo buildings from New Jersey
    Sell
    Private listings: What NYC sellers and buyers need to know about the off-market controversy
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    big apple moving NYC
    Troubleshooting
    How can I save money when hiring a moving company in NYC?
    Sponsored By Big Apple Moving
    Houses and apartment buildings in Queens, NYC
    Troubleshooting
    Mayor Adams is bringing the tax lien sale back. Here’s how to get your property off the list
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
    An image of the top of a brick New York City apartment building, including its parapet.
    Design + Architecture
    Parapet inspections: What NYC boards and building owners need to know about Local Law 126
    solar panels on a small house roof
    Design + Architecture
    Simple Yet Powerful Steps To Turn Your Apartment Eco-Friendly
    Sponsored By Ecoflow
    This is a photograph of a street in the Upper West Side in NYC viewed from the Summit in Central Park through bare tree branches.
    Renovation
    Fewer buyers, steeper rents, and costlier renovations: How tariffs could impact NYC real estate
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
    Burned and Boarded Up Windows
    When should your board hire a public adjuster?
    Manhattan GM
    What should we consider when renewing insurance for our building?
    Facade of NYC buildings
    How much is insurance on a NYC co-op or condo building?
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
    FlatRate moving brick underground
    Live
    How to troubleshoot your move in advance
    Sponsored By flatrate
    Apartment buildings at Grand and Crosby streets in Soho, Manhattan
    Affordable Housing
    Ask Altagracia: My mom is moving out of our rent-stabilized apartment. How do I take over the lease?
    Sponsored By Outerbridge Law P.C.
    big apple moving NYC
    Troubleshooting
    How can I save money when hiring a moving company in NYC?
    Sponsored By Big Apple Moving
  • Brick Report
  • About Us
  • About Us
Social Links
follow:
  • Facebook
  • Twitter
  • Instagram
  • Flipboard
  • search
☰
Fulltext search
FILTER RESULTS BY:
New Main menu
  • Buy
    • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide
  • Boards & Buildings
    • Boards & Buildings
    • Boards
    • Finance
    • Insurance
    • Legal
    • Property Management
    • Structure & Systems
    • Sustainability
  • Advertise
    • Advertise with us
    • Sponsored Content
    • Experts
  • Brick Report
  • About Us
    • About Us
    • Advertise
  • About Us
SUBSCRIBE TO OUR NEWSLETTER →
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Boards & Buildings > Insurance  [ SPONSORED ]
5 ways your co-op or condo board can get the best deal on your building's insurance policy
In partnership with Adam Leitman Bailey, P.C.
March 28, 2022 - 2:30PM
image

Co-op and condo boards are often given very little time and few options when it comes to renewing insurance coverage for the building.

iStock

You won’t know how important it is to have good insurance for your building until you need it. “Having poor insurance coverage is like walking a financial tightrope without a safety net,” says New York City real estate attorney Steven Wagner, a partner at Adam Leitman Bailey, P.C. who represents co-op and condo boards and owners.

Any structural damage or injury to someone in the building can create serious difficulties for your condo or co-op. With insurance premiums running into the tens of thousands of dollars per year, you need to make sure your building is getting its money’s worth. 

“If you are not getting a satisfactory insurance premium, the company is denying your claims, or your premiums are going up as a result of claims, it’s worth considering whether you have the right insurance broker or carrier for your building,” Wagner says. 

Unfortunately, co-op and condo boards are often given very little time and few options when it comes to renewing insurance coverage for the building. You need to carve out as much time as possible to review a quote and possibly bring the cost down. It’s also important to thoroughly understand how the insurance works—and how to get the best coverage at the best price.

1) Group coverage can save you money, but only if it’s fairly allocated

Insurance coverage is not like title insurance where the rates are regulated based on the price of a property. 

“Companies have a degree of latitude in what they will cover,” Wagner says. Some property managers arrange insurance policies to cover all of their buildings under one agreement. “You need to know if you are part of a group or not and how the premiums and coverage are allocated." 

Group insurance might result in lower premiums, but the allocation between the members of the group can be shifted so you may be paying more or less than your fair share. Ask your property manager how the premiums are allocated and request schedules reflecting the premiums paid by each insured property.

A new managing agent can often get a better rate for a building when they take over its operation.

“That’s because they use their relationships with carriers to lower premiums as one of their selling tools—they come in and save the building money on insurance.  It gives you an idea of the flexibility of the premium,” Wagner says.

2) Use multiple brokers but limit the carriers they can contact

Insurance companies will often only deal with a single broker for a building, so for a truly competitive bidding process, the trick is to use multiple brokers but limit the number of insurance companies they can reach out to. “It’s customary for a broker to notify the entire industry that they are the exclusive broker for the building. This can limit the competitiveness of the bidding process,” Wagner says. 

By selecting more than one broker and having them each declare which company they will approach, you will get the most competitive bid. Brokers will maximize their relationships with carriers to your advantage. 

Keep in mind that shopping around for new coverage every year is counterproductive.

“Insurance companies feel more comfortable insuring a condo or co-op with which they have a long relationship, and there’s also a risk claims will fall between the cracks of two different insurance company policies anytime you change companies,” Wagner says. 

3) Secure the right to choose an attorney

If a lawsuit is filed or threatened against your building, your insurance company may have an obligation to defend the building against the claims. The initial decision will be made based on the allegations in the complaint. If it is unclear whether the claim will be covered, the insurance company will hire an attorney to defend the co-op but will reserve their rights to refuse to pay, if it is ultimately determined that the claim is not covered. 

When an insurance company does this, you have the right to demand your own attorney to handle the case so there’s no risk the insurance company’s lawyer might steer them in a way that leads the insurer to deny coverage. 

“Keep in mind that the insurance company might not agree to pay your lawyer’s hourly rate, so your building may have to make up the difference,” Wagner says.

4) Know the size of the deductible and what’s included

You should know how much your building’s deductible is—that is, the amount the building would be expected to pay before an insurance company will step in. Sometimes the deductible will include the legal fees and expense of defending a case, and sometimes it won’t. 

“That may result in you writing a check when an attorney is assigned and sometimes there is a small co-payment, around 1 percent. It’s not a major expense, but you should know ahead of time if you’d be required to pay it,” Wagner says. 

5) Importance of prompt notification of claims 

Most policies require you to notify your insurance company about claims within a reasonable time frame. Wagner says “the safest thing to do is to notify the insurance carrier as soon as possible, even if all the board has received is a threatening letter.” 

If you don’t notify the insurance company, and it comes out that the board had earlier notice, it might result in their refusal to pay. There’s even more of a risk if the building has recently changed insurance carriers because it may come down to a dispute about which company is responsible for coverage. 

Wagner says some managing agents don’t put claims in because they feel it will increase premiums, but this is misguided.  “Insurance is purchased for a reason,” he says.

You pay premiums for protection and the policy should be used to avoid or mitigate out of pocket expenses and losses the co-op or condo owners might otherwise have to assume.  

“You shouldn’t hesitate to put in claims, even if you do not think they are not going to mushroom into a lawsuit. If the claim does not result in a suit, in most instances it will not affect premiums,” he says. “However, if you know the claim is less than your deductible, it certainly will not be worth submitting a claim.”

​​New York City real estate attorney Steven Wagner, a partner at Adam Leitman Bailey P.C., has more than 30 years of experience representing co-ops, and condos, as well as individual owners and shareholders. You can submit a question for this column via email or if you’d like to arrange a free 15-minute telephone consultation with Steve send an email or call (212) 584-1973.

You Might Also Like

image
New Construction + Condos The parking spot we bought in our new condo building is too small. The developer won't help. What can we do?
image
Sell Our co-op board wants to change the flip tax to increase the building's reserve funds. What do we need to consider?
image
Troubleshooting Our co-op bylaws haven’t been updated in decades. What amendments should we change or add?

 

In partnership with

Adam Leitman Bailey, P.C.

Related Articles

image
Our co-op bylaws haven’t been updated in decades. What amendments should we change or add?
image
Our co-op board wants to change the flip tax to increase the building's reserve funds. What do we need to consider?
image
The parking spot we bought in our new condo building is too small. The developer won't help. What can we do?
Adam Leitman Bailey, P.C.
SHARE
TWEET

Sign Up for our Boards & Buildings Newsletter (Coming Soon!)

Email Address

Thank you for your interest in our newsletter. You have been successfully added to our mailing list and will receive it when it becomes available.

Got a question for us? We'd love to hear!
Brick UndergroundBRICK UNDERGROUNDREAL LIFE. REAL ESTATE. REAL NEW YORK.
Social Links Footer
  • Facebook
  • Twitter
  • Instagram
  • Search
Main menu footer
  • Buy
    • The Market
    • Investing
    • New Construction + Condos
    • Affordable Housing
    • Co-ops
    • Negotiating + Financing
    • How to Buy in NYC Guide
  • Rent
    • Affordable Housing
    • Roommates + Landlords
    • The Market
    • The Search
    • How to Rent in NYC Guide
  • Sell
    • Staging + Open Houses
    • Negotiations + Closings
    • Getting Ready
    • How to Sell in NYC Guide
  • Live
    • Neighbors
    • Kids + Pets
    • Neighborhood Intel
    • Products + Test-drives
    • Troubleshooting
  • Improve
    • Small Spaces
    • Small Projects + DIY
    • Renovations
    • Design + Architecture
    • Products + Services
    • How to Renovate in NYC Guide

Get more news you can actually use...

The subscription service is currently unavailable. Please check again later.

Delivered to your inbox weekly - for free.

*By signing up you agree to receive occasional emails on behalf of our sponsors

Footer Menu
  • About Us
  • Advertise

Copyright 2009-2024 by BND Ventures Inc | Privacy Policy | Terms of Service | Ad Choices | Login