What Kind of Insurance Do You Need for a NYC Brownstone?

New York’s brownstones are full of charm, but they also present unique risks when it comes to insurance. Their age, architecture, and historic value call for more than a basic homeowners policy. Many insurers won’t cover them at all. The right coverage helps protect these prized properties.

Brownstones: Specialized Valuation and Protection

Compared to new construction, brownstones often have higher reconstruction costs. Restoring custom masonry and ornate woodwork requires rare materials and skilled craftspeople. As a result, these historic properties typically require specialized insurance policies designed to preserve their character. (Compliance with modern codes is another matter, discussed later.)

Beyond finding a carrier that insures brownstones, it’s equally important to find an insurance partner who can look after your interests before and after a claim. Working with a brownstone insurance specialist will ensure that your policy limits will restore the property to its previous condition. And, in the event of a claim, your partner can help connect you with contractors experienced in restoring historic properties.

Ordinance or Law Coverage for Compliance

Insurance policies cover the expense of returning the property to its pre-loss condition. Constantly evolving and increasingly strict construction codes—particularly in New York City—require owners to pay for upgrades that will bring outdated systems or features into compliance with current codes. Outdated plumbing and wiring are common in many brownstones and other historic homes, which can translate into expensive renovations.

To avoid these hefty out-of-pocket expenses, we recommend that brownstone owners purchase ordinance or law coverage. This affordable add-on provides extra funds to bring older properties up to current safety standards.

Considerations for Multi-Family Brownstones

Many brownstones are two- or three-family properties, offering homeowners the added benefit of rental income. Deciding to rent out part of the property requires an upgrade to landlord insurance, which covers the increased risk associated with rental property. This specialized protection not only covers the building itself, but it also includes additional liability protection for common areas.

If you choose to rent part of your brownstone, consider adding Loss of Rents coverage to the landlord policy. This option will replace lost income if a covered event requires tenants to move out during repairs.

How Brownstone Ownership Affects Insurance

When it comes to insurance, details matter. If your brownstone is owned through a corporation or limited liability company, for instance, make sure the name on the policy matches the name on the deed to avoid potential claim issues.

Also, if you live in the property but a business entity legally owns it, you may need a separate renter’s insurance policy to protect your personal belongings. In this situation, you technically reside in the building as a tenant. It may seem complex, but a conversation with a knowledgeable broker can ensure the right coverage is in place.

Liability Protection for Brownstones

From icy sidewalks to steep stoops and curvy staircases, brownstones require liability protection in case someone gets hurt on the property. Liability coverage protects owners from potential medical or legal claims arising from slips and falls on a wet floor or uneven steps. For added protection, many owners extend their liability limits with umbrella coverage, often available at a relatively low cost.

Choose the Right Insurance Partner

The right coverage can preserve your historic brownstone and your peace of mind. But these iconic buildings require specialized knowledge and policies to ensure proper protection. You need a broker who understands your property—and the insurance carriers that cater to these iconic homes.

City Building Owners Insurance knows the market, the challenges, and the unique needs of New York City brownstones. Contact us at 877-576-5200 or request a free, no-obligation insurance review to ensure you have the right policy for your historic home.