Preventive Maintenance Can Help Co-op and Condo Boards Curb Insurance Costs

What happened

Habitat Magazine reported on October 23, 2026, that co-op and condo boards in New York can push back on rising insurance costs by lowering risk in their buildings. The piece draws on a Brick Underground report. It describes a hard insurance market, where premiums go up while coverage shrinks.

The main advice is preventive work. A building's claims history shapes future premiums and can decide whether an insurer will write a policy at all. Parag Parekh, a partner at the law firm Moritt Hock & Hamroff, told boards to start a boiler replacement before the boiler fails and to keep up regular equipment inspections. For old risers, a leak-detection or water-sensor system can help. Sophie Bird, senior vice president at IMA Financial Group, said a few years without claims can lower premiums. A reserve study, an assessment of the building envelope and mechanical systems usually done every three to five years, can also help at renewal time.

The article says Department of Buildings (DOB) violations, such as those tied to a facade, garage or parapet, can raise premiums. Parekh advised boards to make sure violations are properly addressed, even if the repair is expensive. Boards should also confirm that anyone working in the building carries suitable insurance and have a process to verify it.

Insurers often point to New York Labor Law Sections 240 and 241, known as the Scaffold Law. According to the report, New York is the only state with a form of absolute liability that can hold owners and contractors responsible for certain gravity-related construction injuries even when the worker contributed to the accident. The report says these claims often settle for more than $1 million, and some reach several million dollars. The article cites a poll in which two-thirds of New Yorkers want the law changed.