Coverage

Property

This is the policy that rebuilds the building after a fire, a burst riser, a wind-torn roof, or a car through the storefront. The decision is the building limit. It has to be enough to rebuild at today’s construction cost, and your lender will insist it’s at least the loan balance. Set it too low and a coinsurance penalty takes a slice off the claim check. We also check whether the policy pays replacement cost or actual cash value, and whether ordinance or law is on it, because after a serious loss the Department of Buildings will make you bring the whole building up to current code and the base policy won’t pay for that.

General liability

Someone trips on the stoop, slips on ice, or a ceiling comes down in a tenant’s apartment. General liability pays the lawyer and whatever the case settles or is judged for. The decision is whether the standard per-occurrence limit is enough for a New York City building, where injury verdicts run high, and what the insurer has quietly excluded. Habitational policies often carve out assault and battery, lead paint, or certain dog breeds. Better to know that now than when the claim letter arrives.

Umbrella / excess

An umbrella sits on top of the liability policy and adds another layer of limit for the bad claim. In New York one serious injury can blow through a primary limit. The decision is how much extra limit to buy and whether the umbrella follows the same terms as the policy under it. We get an umbrella quote on every building we place, whether or not the lender asks, so it’s a choice you make and not something that got skipped.

Equipment breakdown

Property policies don’t cover things that just break. Equipment breakdown does, for the boiler, the elevator, the electrical service, and the compressors on the roof. It pays to fix or replace what failed and, on most forms, the rent you lose while it’s down. Our take: if the building has a boiler or an elevator, buy it. The premium is small next to a new boiler in January.

Loss of rents

After a fire, the mortgage and the taxes keep coming and the rent stops. Loss of rents replaces the rental income while the building is being put back, up to a period or an amount. The decision is how much and for how long. Twelve months of gross rent is the usual starting point, but a rebuild in this city with permits and rent-stabilized tenants can run past that.

Flood

Flood is excluded from every property policy. If the building sits in a FEMA flood zone you need a separate flood policy, from the National Flood Insurance Program or a private insurer, and the lender will require it in a high-risk zone. Being outside the mapped zone isn’t a pass. A lot of the water damage in Brooklyn after Ida happened on blocks nobody had mapped. The decision is whether the exposure at your building is worth the premium. We’ll pull the zone determination so you’re deciding on facts.

Terrorism (TRIA)

Under the federal Terrorism Risk Insurance Act, insurers have to offer terrorism coverage on commercial property and liability policies, and you can take it or decline it in writing. Lenders on city buildings usually require it. It’s your call, and the charge is shown as its own line on the quote so you can see what you’re saying yes or no to.

Admitted or surplus lines?

An admitted insurer is licensed by the New York Department of Financial Services, its forms and rates are filed with the state, and the New York guaranty fund stands behind its policies if it goes under. A surplus lines insurer isn’t licensed here. It can write the risks the admitted market turns down, on its own forms and pricing, and there’s no guaranty fund behind it. Many older Brooklyn walk-ups, buildings with claims, and buildings with open violations can only be placed in the surplus lines market. Surplus lines placements carry a 3.6% New York excess line tax and an ELANY stamping fee, both passed through to you at cost and shown as separate lines on the quote.