The good news in the insurance marketplace for co-ops, condominiums, and rental properties is that a few new carriers have entered the marketplace, and that is starting to result in the market softening and lower rates for insureds. The bad news is that the softening does not apply to Commercial Umbrella Insurance.
Commercial Umbrellas continue to see hefty rate increases, as no new programs have entered the marketplace, and more and more Liability suits continue to exceed the underlying limits and pierce the Umbrella. We have been informed by two of the top Umbrella Program Managers to expect large rate increases in the future. To give you a few examples:
- A 144-unit co-op in Manhattan with a $10M limit increased from $5,800 to over $35,000.
- A 69-unit condo in Brooklyn with a $75M limit increased from $9,000 to over $38,000.
- A 200-unit co-op in New Jersey with a $50M limit increased from $14,900 to a whopping $76,000.
It may be at the point that higher limits are no longer affordable, so ask your broker to provide you with alternate limit options upon renewal. Reach out to us with questions anytime.
