Rates for habitational insurance coverage are substantially rising. Accounts with above average loss records are increasing from 30% to 50% from expiring pricing. Accounts that have good historic claim performance are seeing increases from 15% to 20% from their expiring programs.
A number of carriers have stopped offering general liability coverage in the NY habitational market. Many of those who remain are shortening limits and adding exclusions. Be on the lookout for NY Labor Law / Action-Over Exclusion to be added to many of the liability programs. Action over claims are specific to New York State where the state’s Labor Laws assign strict liability onto building owners for injuries to contractors resulting from height. It is more important than ever to review the risk management program in place to make sure that that any contractor entering the premises has proper coverage and that there is a written and signed risk transfer agreement in place. Additionally, firearms and assault and battery exclusions or sublimits are being added by several of the insurers.
The excess umbrella market that has flourished over the last decade through the use of pooling by risk purchasing groups (RPGs) which had provided high limits for very low premium. In 2020, many of the RPG’s are now underwriting accounts individually, reducing limits and increasing premium sometimes as much as three fold. Limits purchased previously may not be available.
Property carriers have been increasing rates over the past several years due to modeling adjustments as well as substantial losses over the many recent events. For the beginning of 2020, accounts that are well run are seeing increases of 15% – 20%. Properties with losses maybe non renewed by the incumbent providers and full capacity at reasonable pricing may not be available for many accounts.
If you are a property owner or manager in NYC, we encourage you to speak to your insurance representative early in the process to at least be better prepared from a budgeting standpoint.
Founded in 1994, First Fidelity Brokerage, Inc. is a leading property and casualty insurance broker and a specialist in industry specific insurance procurement for Real Estate, Construction, and Education. Headquartered in New York City, FFB has access to over 200 insurance carriers and has binding authority for several leading insurers for select group of industries. www.FFBinsurance.com
