Just like in our own personal budget, it seems that the everyday expenses of a co-op or condominium building just keep going up. Among the most prevalent cost hikes, as readers surely know, are fuel, salaries, repairs and the price of materials.
Also increasing has been the cost of insurance—or has it?
Co-ops and condos typically buy a variety of insurance policies. These can include general liability, umbrella liability, property, equipment breakdown, workers’ compensation, directors and officers, professional liability and fidelity bond coverage and disability benefits law coverage.
On a long-term basis, insurance premiums have indeed risen, with a spike in rates especially noticeable after 9/11. During the past few years however, the market has become “soft” and premiums have actually gone down.
“If you had asked me this question two years ago, I would have said that insurance costs had increased probably 50 percent, but currently the market is soft and competitive,” says Sharon Emek, managing director of CBS Coverage Group Inc. in Manhattan and Plainview, and a member of the Independent Insurance Agents and Brokers of New York. “Rates have decreased to almost where they were 10 years ago.”