Home insurance is not glamorous by any stretch of the imagination, but it plays a crucial role in protecting one of life’s biggest investments your home. In fact, it’s often a requirement at closing when purchasing a property. Despite this, many Americans remain uninsured or underinsured. Nationwide, 1 in 13 Americans lack home insurance, and over 60% are underinsured. From my experience, this issue is even more pronounced in NYC, where misconceptions about condo and co-op insurance are widespread – not just among buyers but even among some so-called insurance “specialists.”
One of the most common and costly misunderstandings is the assumption that a building’s maintenance fees, or common charges will cover the interior structure of a unit. In reality, this is usually NOT the case. Most condo and co-op owners are responsible for rebuilding their entire interior structure in the event of a fire or water loss, yet many don’t realize this until it’s too late.
For example, I recently worked with a client purchasing a 2,000-square-foot apartment in Tribeca for $5.5M. They initially received a quote from a well-known carrier that included only $25,000 in rebuild coverages.. an amount so low that it wouldn’t even cover their custom kitchen cabinets if a major loss occurred. Fortunately, they reached out to me before closing, and I was able to walk them through the risks, explain what they truly needed, and secure the right coverage for their home.
This is exactly why having a knowledgeable, local NYC broker is essential. With access to over 20+ carriers, I ensure my clients receive the right coverage at a competitive price - because in a city like New York, being underinsured can be an incredibly costly mistake.
Brad Ziegler, CPRIA
Partner | Vice President - Personal Risk
USI Insurance Services
Direct: 212.842.3442
Mobile: 201.693.6320
