Why Multifamily Insurance Rates Are Climbing and How to Lock Them Down

Sponsored By Brownstone Agency, Inc.

The Brownstone Agency, Inc. has been providing quality and affordable insurance coverage for brownstone, townhouse, multifamily owners, and condo and co-op boards since 1973.

Created By Brownstoner

If you’re a Brooklyn property owner, you’ve noticed a trend that hasn’t stopped: Insurance rates for multifamily apartment buildings have skyrocketed, rising nearly 20 percent annually for the past few years. But why is this happening? Let’s break it down:

Climate change’s local impact
While we might not face hurricanes like Florida, the impact of extreme weather is hitting home. Increased risks of flooding and severe storms are driving up insurance costs across the country, and Brooklyn’s no exception.

The construction crunch
Have you tried renovating lately? Skyrocketing costs for materials and labor aren’t just affecting your brownstone’s facelift — they’re making it pricier for insurers to cover potential repairs.

Brooklyn’s aging beauties
Our historic buildings are the heart of Brooklyn’s charm, but their aging infrastructure comes at a cost. Outdated plumbing and electrical systems in many properties mean higher risks and more expensive specialized repairs.

Brooklyn’s real estate boom 
As property values in Brooklyn continue to climb (despite recent market jitters), so does the cost to insure these increasingly valuable assets.

The legal landscape
In our litigious times, insurers are facing more property damage and liability claims, driving up their legal costs — which inevitably trickle down to us.

However, there are rays of hope for property owners. Here are some:

Local expertise
With this complex landscape, local insurance agencies that truly understand Brooklyn’s unique market are more crucial than ever. They can navigate the limited options and potentially negotiate better rates for savvy property owners. Brownstone Agency has been in the borough for 52 years.

The pricing solution
Brownstone Agency’s unique three-year prepaid policy stands out as a beacon of stability. By locking in your rate for three years, you can shield yourself from these annual hikes that are rattling so many Brooklyn property owners.

As John Simone, president and CEO of Brownstone Agency, said, “It’s the number one reason why single- and multifamily building owners come to us. No other insurance agency has that policy.”

To protect your investment and potentially realize significant savings, reach out to Brownstone Agency. Inquire about their three-year rate-lock policy and discover how you can secure comprehensive coverage at a stable rate.