When deciding how much liability insurance their building should carry, condo and co-op boards in New York need to take into consideration the size of their building, its age, and any potential environmental hazards. Generally speaking, it is recommended that co-ops and condos obtain a minimum amount of liability coverage equal to the full replacement cost of the building or five times its annual budget — whichever amount is greater. This ensures that both owners and shareholders are protected from financial losses due to incidents such as property damage or personal injuries.
To ensure maximum protection for all parties involved, some buildings may opt to purchase additional umbrella coverage in addition to this minimum requirement. Umbrella policies provide an extra layer of security by supplementing existing coverage with higher limits and extending liability to a wider range of incidents. This type of policy is particularly beneficial for buildings that are prone to high-risk activities, such as those that have amenities like swimming pools, playgrounds, or community centers.
When choosing the right amount of liability insurance coverage for their building, New York co-op and condo boards should work with an experienced insurance agent who can provide advice based on their specific needs. In addition to selecting the appropriate type and amount of coverage, it’s important for buildings to review their policies annually in order to make sure they are up-to-date with any changes in laws or regulations. Doing so will help ensure that everyone within the building is adequately protected in case of an unfortunate incident or accident.
The peace of mind that comes from proper liability insurance coverage is invaluable, so taking the time to make sure your building has enough protection is well worth the effort. With the right amount and type of coverage in place, condo and co-op boards can rest easy knowing their residents are protected against financial losses due to accidents or incidents.
If you want to learn more about protecting your co-op with insurance! We’re always happy to answer any questions you may have. We would love to assist, we can be reached at [email protected] or 718.626.8833