Owners & management · Deals & development · 11/05/2026, 7:12 PM
Owners push Albany and City Hall for insurance reform as costs soar
Developers and owners at the Somos conference in Puerto Rico say lawmakers may finally act on rising property and liability insurance costs. Rent-stabilized rents are frozen for two years while insurance, labor and utility costs climb. The city plans its own insurance option for affordable buildings, and a Democratic supermajority in Albany could help liability reform bills pass.
Reported by The Real Deal · New YorkRead the original ↗
What happened
The Real Deal reported on 11/06/2026 that developers and owners at the Somos conference in Puerto Rico are optimistic that lawmakers will act on rising insurance costs this year. Liability claims tied to "slip and fall" cases have reached a fever pitch in New York. The outlet said these claims affect both building owners and the city itself.
The Mamdani administration recently filed a RICO action against personal injury firm Asher & Associates. The city alleges phony claims that cost taxpayers millions. Separately, the administration plans a city-backed property and liability insurance option for rent-stabilized and affordable housing. It aims to cover 20,000 units in 2027 with premiums 20 to 30 percent lower.
Riseboro CEO Kieran Harrington shopped a liability reform bill to lawmakers at the Caribe Hilton. The bill seeks to raise the bar for bringing injury claims against owners across the state. The Real Deal said Governor Hochul's resounding election victory and a Democratic supermajority in Albany give a bill like this a real chance at the state level. State Sen. Jamaal Bailey, who chairs the Senate insurance committee, said Albany is primed for reform.
The push comes as rents on all rent-stabilized apartments are frozen for the next two years while utility, labor and insurance costs rise. John Crotty of Milford Street Insurance Captive said liability payouts hit affordable housing at about three times the rate of market-rate housing.
Key facts
- Outlet and date
- The Real Deal, published 11/06/2026
- Where discussed
- Somos conference, Caribe Hilton, Puerto Rico
- City lawsuit
- RICO action by the Mamdani administration against Asher & Associates, alleging phony claims costing taxpayers millions
- City insurance option
- Aims to cover 20,000 rent-stabilized and affordable units in 2027
- Promised savings
- Premiums 20 to 30 percent lower
- Rent-stabilized rents
- Frozen for the next two years
- Liability payouts
- About three times higher for affordable housing than market-rate, per John Crotty
- State bill
- Riseboro's proposal would raise the bar for injury claims against owners statewide
What it means
Landlords
Owners of rent-stabilized and affordable buildings may get access to a city-backed insurance option in 2027 with premiums 20 to 30 percent lower. Eligibility and how to apply are not yet described.
Tenants and voucher holders
Rent-stabilized rents stay frozen for two years regardless of insurance costs. Insurance relief for owners is being framed as a way to keep affordable buildings financially stable during the freeze.
Buyers and owners
Insurance reform, including a bill to make injury claims against owners harder to bring, is a stated priority heading into the next Albany session. Nothing has passed yet.
The highlights
- City-backed insurance plan aims to cover 20,000 units in 2027 at 20-30% lower premiums.
- The city filed a RICO case against injury firm Asher & Associates over alleged fake claims.
- Riseboro's CEO is pushing a bill raising the bar for injury claims against owners.
Why it matters Landlords
Insurance is a top cost for rent-stabilized and affordable owners, and reform or the city plan could cut premiums during the rent freeze.
What to do: Watch for details on the city-backed insurance option and liability bills in the new session.
Not known yet
- Which buildings will qualify for the city-backed insurance option and how owners sign up
- Exactly when in 2027 the city insurance option will launch
- Whether Harrington's bill has a sponsor or bill number in Albany
- Where the RICO case against Asher & Associates stands in court
Background
In New York, property owners typically carry general liability insurance that covers injury claims from people hurt on their property, such as slips and falls on stairs or sidewalks. Premiums reflect claim history and payout levels in the area. Rent-stabilized rent increases are set each year by the city's Rent Guidelines Board, so owners of stabilized buildings cannot simply raise rents to cover higher operating costs. Changes to who can sue and how much they can recover generally require action by the state legislature in Albany.
Summary written by Bulwark from The Real Deal · New York’s reporting. The original story is at therealdeal.com. This is general information, not legal advice.
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Photo: Andre Carrotflower, CC BY-SA 4.0