2026 Insurance Update: What Every Building Owner and Condo / Co-op Board Needs to Know

As insurance premiums rise across New York City, condominium and cooperative properties are facing one of the most complex insurance environments in decades. Understanding exposures, risk mitigation practices, and how to manage claims effectively can help boards better protect their buildings and their budgets.
 
This shift has placed greater responsibility on boards to understand insurance fundamentals, proactively manage risk, and work closely with property managers, brokers, and legal counsel.

Click here to watch our 2026 Insurance Market Update for boards and buidling owners.
 

Market volatility is being driven by a perfect storm – major claim losses, reduced carrier capacity and increased legal exposure, particularly because of New York’s strict construction liability laws.

"We’re in a hard market – 20%-plus premium increases, fewer carriers offering coverage, and more rigorous underwriting. In fact, some properties in NYC have seen increases of 50% to 200% when leaving preferred programs."

— Leonor Vivona, Vice President | FS Insurance Brokers
  

With only a handful of carriers currently willing to compete for NYC condo and co-op business, underwriters are more selective than ever. They’re scrutinizing claims history, building maintenance practices, vendor contracts, sprinkler testing schedules, the presence of water leak prevention systems, and more.
 
Water damage is now one of the leading causes of insurance claims for multifamily residential buildings. Many carriers are now specifically asking whether buildings use leak sensors, automated shutoff valves, or maintenance protocols for high-risk areas.

"Anything that you can do to prevent or mitigate water damage claims is going to be really impactful."

— Sean Kent, Senior Vice President | FS Insurance Brokers
  

Labor Law 240, commonly known as the Scaffolding Law, introduces considerable risk of exposure for condos and co-ops.

Designed more than a century ago to protect workers, the law places strict liability on property owners, including residential condos and co-ops, when injuries occur to contractor employees. That’s why contractor vetting has become so important – not just certificates of insurance, but full policy reviews.

"Under the law, if there is an injury and the condo or co-op is sued, you are 100% responsible. Certificates of insurance are not worth the paper they’re written on. The devil is really in the details. You’ll be surprised what you find once you start looking into the policies."

— Jillian Menna, General Counsel | Genatt Insurance Solutions; Of Counsel | Braverman Greenspun
  

She describes a common scenario: a contractor has insurance, but their policy excludes height work. In other words, their coverage would not apply to a fall from a height, one of the most common claims in Labor Law litigation.

Her advice? Never rely solely on a certificate of insurance. Always request full policy documentation, especially for major capital repairs.

“We always want both indemnification and additional insured coverage,” said Menna. “Think of it as belt and suspenders.”
 

When a loss occurs, how the building documents and reports the claim can influence both coverage and future premiums.

"Document everything. Take videos, photos, preserve receipts, and keep the damaged property until the adjuster arrives. A common misstep is making permanent repairs before an insurance inspection. Unless there’s an emergency and the repair will prevent further damage, the insurance inspection is a critical step in the process."

— Shalamar Clarke, Manager, Insurance | FS Insurance Brokers
  

Another critical step? Notifying all parties, including property management and insurers, early in the process. Delayed claim reporting can expose a building to coverage denials, higher losses, or poor loss-run records that increase future premiums.

"Carriers take issue if claims are not reported in time, and they do track that. Buildings with delayed reporting histories could jeopardize their renewals, or worse, face non-renewal."

— Jillian Menna, General Counsel | Genatt Insurance Solutions; Of Counsel | Braverman Greenspun
  

One of the most common frustrations among building owners and board members is the timing of insurance quotes. They often arrive days before renewal.

"If we had a magic wand, that would be the one thing we’d change. Underwriters typically will not release a quote more than 30 days before renewal, because new information, especially claims or violations, can change pricing and eligibility within that window."

— Sean Kent, Senior Vice President | FS Insurance Brokers
  

This is especially complicated when buildings are being non-renewed or require excess and surplus lines coverage, which often involves arranging a tower of excess liability insurance from multiple carriers.

For the best possible outcome, the renewal process should begin 90 days before the policy expiration date.
 

The best chance to stabilize premiums and improve insurability begins with risk management, not renewal paperwork.

Be proactive, not reactive. This includes:

• Installing water leak sensors and automatic shutoffs
• Conducting regular building inspections
• Maintaining and communicating open recommendation plans
• Establishing contractor insurance protocols
• Vetting contractors’ insurance policies, not just COIs
• Creating long-term claims prevention strategies with property management

Explore additional risk protection for your property with FS Insurance Brokers.