How to Survive a Challenging Insurance Market

You’ve heard the saying “it’s not what you know, it’s who you know.” At City Building Owners Insurance, we make it our business to know what and who. Specifically, we know what’s happening in the industry and who the players are. Who’s leaving the market? Who’s entering the market? What program will best fit the needs of a specific client?

By specializing in insurance for New York area property owners, we stay on top of changes that affect our clients.

New York City Insurance Specialists

Ask any New Yorker: there’s no place on earth like this city. As one of the oldest cities in the country—and the most densely populated, New York presents unique challenges when it comes to insurance. Many insurance companies (including those who advertise “New York homeowners insurance” or “New York landlord insurance”) exclude the five boroughs from their service area.

If you own a three-family brownstone in Brooklyn or a six-unit apartment building in Manhattan, you’ll need specialty coverage for that property. Older properties—most of what you find in New York City—have special insurance needs. Pre-war buildings and new construction have to conform to the city’s complex construction codes. It’s more efficient for insurance industry giants to avoid the market altogether.

Just as it takes a special kind of person to live and thrive in the city that never sleeps, it takes a savvy and sophisticated insurance company to embrace this unusual metropolis. We know them all, and we put that knowledge to good use for customers.

Consider the following examples.

Consistent Insurance Inspection Outcomes

Often, when an insurance company writes a new policy, an inspector will visit the property to confirm the accuracy of the information provided on the application. As part of the inspection, this professional will typically make recommendations to help improve the property profile. Sometimes, these “suggestions” are changes required to keep the policy.

One of our insurance carriers recently sent inspectors to two different properties, both with horizontal bars on the railings instead of vertical bars. The first inspector recommended various options to address the underwriter’s objection to horizontal bars. The owners of the second property were instructed to replace the guardrail. We asked the insurance company whether the second owners could take the same corrective measures suggested at the first property. The insurer agreed.

Insurance Advocates for New York Property Owners

Not all issues are so straightforward. We spend a lot of time mediating issues on behalf of clients. For instance, in today’s risk-averse market, insurers not only look at the property applying for insurance but also at neighboring properties. One client received a non-renewal notice because of the increased risk posed by the adjacent space, which was a special event venue.

Many of our customers own mixed-use properties, which combine residential and commercial uses in a single building. We frequently counsel these owners on which commercial occupancies qualify for the most favorable insurance rates. Expanding this guidance to include neighboring properties is a recent development.

In the above example, the event company had vacated the premises. The space now served as a house of worship (a significantly lower risk category). Unfortunately, the previous occupant didn’t take down its website, which identified the address as an active event venue. We lobbied with the insurance company to change its decision based on the current occupancy.

A Human Approach to Insurance

When founder Stu Cohen launched the City Building Owners Insurance program, he made it clear to all new team members that we don’t sell a product; we deliver a service experience. This philosophy continues to drive our operations today, especially in this challenging market.

• When a carrier stops insuring a particular property type, we review all the affected policies and search for the best option for each customer. Long before renewal time. (We can make these recommendations, thanks to our annual review process.)
• We look for creative ways to help our clients get the protection they need at the best possible rates, while also navigating the requirements set by the insurance carriers. Part of this involves constantly reviewing the market to make sure each customer has the right policy for their needs.
• Finding the best insurance match requires a comprehensive understanding of the property, as well as the owner’s situation. We have to ask a lot of questions. Some people get offended, impatient or both. We realize we’re asking for an investment of time. Please think of this process as helping us help you.

At the end of the day, we ultimately want you to have the best insurance policy for your needs. Changing carriers might save a little money, but if it locks you out of a better program that’s no longer offered, we’ll present all your options so you can make an informed decision. The same philosophy applies to our complimentary, no-obligation policy reviews. We’d love to save you money, improve your coverage, or both. But if you already have good coverage at a reasonable price, we’ll tell you that, too.

When it comes to insurance, who you know can be more important than what you know. Customers of the City Building Owners Insurance program have the confidence that we’ll stay on top of what happens in the industry—particularly in a challenging market like today—so they don’t have to.

For a  free, no-obligation review of your current building insurance policy, please call us at 877-576-5200.