Insurance renewals for NYC condos and co-ops have become more challenging in 2025. Carriers are tightening requirements, raising premiums, and in some cases, canceling policies with little notice. Even minor issues like sidewalk cracks or loose handrails can now trigger urgent repair demands from insurers.
The rise of “loss recommendations”
More carriers are using loss recommendations as a condition for renewal. These are written notices requiring specific repairs or safety upgrades, often with strict deadlines of 30–60 days. If the work isn’t completed and documented in time, the carrier can choose not to renew your policy.
This is happening in a market where insurance costs for NYC co-ops and condos have already risen as much as 300% depending on claim history. In some neighborhoods, premiums have more than doubled. Liability limits are shrinking, umbrella coverage is harder to secure, and timelines for addressing insurer requests are getting tighter.
Why boards should take notice
NYC law holds property owners, including co-op and condo boards, responsible for maintaining sidewalks adjacent to their buildings. Something as small as missing or outdated safety signage, or a small crack in the pavement could trigger a loss recommendation, putting your insurance renewal at risk.
Even one unaddressed loss recommendation can lead to a non-renewal, forcing your board to find new coverage quickly, often at a much higher rate. Boards that understand how to navigate these shifts — from budgeting for increases to addressing inspection findings early — are far better positioned to keep coverage intact.
How boards can reduce their risk
- Inspect regularly - Schedule quarterly walkthroughs of common areas, sidewalks, curbs, stairs, handrails, and lighting. Spotting and addressing hazards early can help avoid costly surprises.
- Document repairs - Keep a visual record of fixes with time-stamped photos and receipts. Having proof of work on file helps in disputes over whether you met a carrier’s requirements.
- Act fast on insurer requests - Loss recommendations come with deadlines. If delays are unavoidable, notifying your broker immediately can sometimes prevent cancellation.
- Review coverage and costs together - Renewal season is a good time to evaluate whether your limits still make sense and if your building’s reserve planning accounts for higher insurance costs.
- Engage early with your broker - A pre-renewal check-in can reveal upcoming inspection trends and highlight repairs that could make the biggest difference in your premium.
The takeaway
Insurance cancellations are becoming more common in NYC, and not just for buildings with major problems. Staying covered now means being proactive — inspecting and repairing regularly, documenting thoroughly, and starting renewal conversations well before your policy is up. A little extra attention throughout the year can help avoid expensive coverage gaps later.
