Building insurance used to be a relatively steady part of the budget. Today, it’s one of the biggest financial pressures facing NYC condos and co-ops. Premiums continue to climb, carriers are tightening underwriting standards, and buildings are being asked to do more to secure and maintain coverage.
For many boards, renewal season now feels uncertain and stressful. Understanding what’s driving these changes, and how to stay ahead of them, can help your building avoid last-minute surprises.
Here’s what boards should know heading into 2026.
Why insurance costs keep rising
A few major factors are reshaping the market:
Fewer carriers taking on NYC buildings
Some insurers have pulled back from the NYC multifamily market, while others are limiting renewals or declining buildings with open issues or recent claims. With fewer carriers quoting policies, premiums rise and terms become stricter.
Higher claim frequency and severity
Water damage, aging building systems, and climate-related events have all driven losses upward. Insurers factor that risk into premiums, especially for older buildings or those with repeated claims.
Tougher underwriting requirements
Underwriters now examine every detail of a building’s maintenance and documentation. Even small issues — cracked sidewalks, missing exit signs, deteriorating roof flashing — can raise concerns.
Higher deductibles and tighter coverage
Many buildings are seeing higher deductibles, more exclusions, and narrower coverage options. Some are forced to accept less favorable terms simply to maintain continuous insurance.
Loss recommendations: the new pressure point
One of the biggest shifts recently is how aggressively insurers are using loss recommendations. These are findings from the carrier’s risk inspectors. In the past they were helpful suggestions. Today, they often determine whether a building keeps its policy.
If required repairs aren’t completed quickly, insurers may issue a non-renewal notice with only 30 days to resolve the issues or find new coverage.
Common triggers include:
- Roof membrane deterioration
- Damaged handrails
- Cracked or uneven sidewalks
- Corroded mechanical equipment
- Non-functioning lighting or emergency signage
This renewed focus on building conditions is why proactive repairs and routine surveys have become essential, not optional. Learn more on how to avoid deferring maintenance here.
How boards can stay ahead
1. Start early
Prepare for renewal at least 90 to 120 days before your policy expires. This gives time to address loss recommendations, confirm building documentation, and let your broker negotiate on your behalf.
2. Review your risk profile
Ask your broker how underwriters will view your building. Age, construction, claims history, mechanical systems, and maintenance all matter. Knowing your risk categories helps you prioritize repairs before renewal season.
3. Prioritize preventive maintenance
Small issues can become underwriting concerns if left unaddressed. Regular roof checks, hallway and stairwell inspections, boiler and pump maintenance, and basic safety upgrades go a long way in keeping your building insurable. For broader context, see our guide on avoiding deferred maintenance.
4. Stay on top of COIs
Insurers want to see strong vendor risk management. Make sure your building collects proper certificates of insurance for anyone doing work. If owners ask why this matters, share our post on why buildings require COIs.
5. Consider deductible strategies
A thoughtful adjustment to deductibles may help control premium increases. This should be a strategic conversation with your broker and finance committee.
If your building only has 30 days: what can you still do?
Not every board gets a long runway. Some receive sudden non-renewal notices tied to unresolved loss recommendations. Others get late quotes from their carrier. Even with only 30 days, there are still meaningful steps to take.
Prioritize the highest-risk items.
Ask your broker which issues matter most to the underwriter. Roof hazards, sidewalk defects, damaged handrails, and life-safety items typically top the list.
Document repairs in progress.
If work cannot be completed immediately, gather photos, proposals, contracts, and scheduled dates. Underwriters often accept proof that repairs are underway.
Ask your broker about short extensions.
If your building can show real progress, some carriers may grant a brief extension or conditional renewal. It’s not guaranteed, but it’s worth pursuing.
Secure temporary coverage if needed.
In urgent cases, your broker may place the building with a surplus-lines carrier. Terms may be less favorable, but it prevents a lapse and buys time to complete repairs.
Communicate early with residents.
Short timelines can create anxiety. Sharing what’s happening, what repairs are in progress, and why the timeframe is tight helps keep everyone informed.
Lean on your management team.
Vendor scheduling, photo documentation, and compliance coordination all need to move quickly. A responsive management partner makes the difference between scrambling and staying organized.
How Daisy helps buildings stay protected
Insurance is no longer a once-a-year task. Daisy coordinates closely with your broker throughout the year, keeps documentation organized, and flags issues early so boards aren’t caught off guard during underwriting. Boards receive renewal policies at least 20 days before the current policy expires, and we bind coverage no later than 13 days before expiration. That timing gives boards space to review, ask questions, and move through renewals without the pressure of a last-minute scramble.
The bottom line
Insurance is likely to remain one of the biggest financial challenges for NYC buildings heading into 2026. But with proactive planning, clear documentation, and a management partner who stays ahead of the details, boards can move through renewals with far more clarity and confidence.
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