Business insurance · Apartment and mixed-use buildings

Apartment building and mixed-use building insurance in New York

A six-unit building, a block of garden apartments or a Main Street storefront with three apartments upstairs is a business, and it is insured like one: a commercial building policy, liability written for apartments, and workers' comp the day you put a super on payroll. Here is what that package holds, the New York rules that change it, and what I need to quote it. My office is in Clifton Park; I meet owners in person in Albany, Rensselaer, Saratoga, Schenectady, Warren and Washington counties and work by phone, email and video with owners elsewhere in New York.

In short

An apartment building with five or more units, or a storefront with apartments above it, is insured on a commercial policy rather than the landlord form used for one- to four-family houses. It needs the building on replacement cost with loss of rents, ordinance or law cover for an older building, general liability written for apartments, workers' compensation and DBL/PFL for a super or maintenance staff, and an umbrella. New York adds rules that shape it: the warranty of habitability, the Scaffold Law for owners who hire contractors, lead rules for older rentals, and local rental registries and inspections.

The building package

  • Building property on replacement cost, with a limit set on what it costs to rebuild today rather than what the building would sell for. Equipment breakdown for boilers, hot water systems and electrical panels; sewer backup by endorsement; flood as a separate policy.
  • Loss of rents: the rent you lose while the building is repaired after a covered loss. Set the period to the time a rebuild would really take, permits and inspections included.
  • Ordinance or law: demolition, the undamaged part you are made to tear down, and the extra cost of building to current code. On an older building it can decide whether the claim pays for a rebuild.
  • General liability written for apartments: falls on stairs, walks and parking areas, injuries in common areas, and damage to a neighbor's property. Read the exclusions for lead, mold, assault and anything about the age of the building.
  • Workers' compensation and DBL/PFL for a super, porter or maintenance staff, part-time included.
  • Commercial auto for a maintenance truck, or hired and non-owned auto when staff run errands in their own cars.
  • Commercial umbrella above the liability, auto and employer's liability limits. A building full of tenants and visitors is where a single serious injury can outrun the primary limit.

New York rules that change the policy

RuleWhat it saysWhat it means for the insurance
Warranty of habitability, Real Property Law §235-bApartments and common areas must be fit to live in and free of conditions dangerous to health or safety; a tenant can't waive itRent abatements are a lease matter; injuries from the condition fall to general liability. Maintenance records matter in both.
Scaffold Law, Labor Law §240Owners share the duty to protect workers at height; only one- and two-family owners who don't direct the work are exemptEvery contractor's certificate, with you as additional insured, before the work starts. See contractors.
Lead rental registry, Public Health Law §1377Two or more units built before 1980 in communities of concern; owner certifies free of lead paint hazards after inspections at least every three yearsCarriers ask about lead; some policies exclude it. Keep the certification.
Federal lead disclosure and RRP rules (EPA)Disclosure and pamphlet before a lease in pre-1978 housing; certified renovators for paid work that disturbs paintHire certified firms and keep the paperwork for three years or longer.

A Department of State rulemaking notice lists the 25 communities of concern the Department of Health named, among them Albany, Amsterdam, Gloversville, Kingston, Poughkeepsie, Schenectady and Troy. If your building is in one of them and was built before 1980, ask the city's code office where your lead certification stands before you renew.

Rental registries and inspections

Several cities register rental units and inspect them on a cycle. The inspection checks the same things a property carrier asks about, so keep the paperwork with your insurance file.

  • Watervliet: a Residential Occupancy Permit inspection every three years for rental units, owner-occupied units exempt, and a separate inspection between tenants. The registry form asks for a local agent who can be reached at all times if you don't live in Albany County or an adjacent county.
  • Rensselaer: two emergency contacts living in Rensselaer County or an adjacent county who can reach the building within 30 minutes; registration lasts 24 months, then a new inspection covering smoke and CO detectors, exits, security, structure, electric and water.
  • Hudson: a building with a business and apartments files a Mixed-Use Occupancy Registration listing each apartment and its smoke and CO detectors, with test dates.
  • Oneonta: a rental Certificate of Compliance is valid for three years, while smoke detector certifications and sprinkler inspections stay annual.
Mixed-use buildings

The store downstairs changes the apartments' policy

A restaurant, bar or salon on the ground floor raises the fire and liability exposure for the whole building. Write the commercial lease so the tenant carries its own general liability naming you as additional insured, insures its own improvements and contents, and carries liquor liability if it serves alcohol. Then ask for the certificate every year, not only at signing.

What carriers look at

  • Year built, construction, number of stories and units, and sprinklers or fire alarms.
  • Dates of the roof, heating, electrical and plumbing updates; fuse panels and old wiring narrow the market.
  • Occupancy: long-term leases, student housing, subsidized units, short-term rentals, vacancies.
  • Commercial tenants and what they do.
  • Lead certifications, local rental permits and open code violations.
  • Staff on payroll, outside contractors, and claims history.

What I need to quote

  1. Address, year built, construction, stories and unit count.
  2. The rent roll, or total annual rents, and any commercial leases.
  3. Update dates for roof, heating, electrical and plumbing.
  4. Current declarations pages and five years of claims.
  5. Payroll for any staff, and the lender's insurance requirements.

Request a quote. For one to four units, see landlord insurance. The business gap check takes three minutes.

Sources

How these pages are prepared · How I'm paid

Questions

Common questions

Short answers to what people ask before they call.

Still have a question? Call (518) 902-8822 or book a call.

I own a three-family house. Is this the right page?

No. One- to four-family houses are insured on a landlord (dwelling) policy, which my landlord insurance page explains. This page is for five or more units, and for a building with a store or office downstairs and apartments above, which needs a commercial policy because of the business on the ground floor, whatever the unit count.

What is ordinance or law coverage, and why does an older building need it?

After a serious loss, the building department will make you rebuild to today's codes, not the codes in force when the building went up. A standard property policy pays to repair what was there. Ordinance or law cover pays for three things it leaves out: the value of the undamaged part you are required to tear down, the cost of demolishing it, and the extra cost of building to current code. On an older building those three can be a large share of the claim, so set each limit deliberately.

Does my liability policy cover a habitability complaint?

Mostly not. Under Real Property Law §235-b every residential lease carries a promise that the apartments and common areas are fit to live in and free of conditions dangerous to health or safety, and a tenant can't waive it. A rent abatement for a broken boiler or a leaking roof is a lease dispute, and a liability policy is written to pay for injury and property damage. Where the condition hurts someone, a fall on a broken stair or a ceiling that comes down, the liability policy is what answers. The protection against the abatement itself is maintenance and records.

Do I need workers' comp for my super?

Yes. The Workers' Compensation Board says virtually all employers must carry it, and that includes part-time workers. A super, porter or maintenance worker on your payroll needs workers' compensation, and DBL and Paid Family Leave once someone has worked for you on 30 days in a calendar year. If the work goes to an outside maintenance company instead, get its certificates before it starts.

Why does the Scaffold Law matter to a building owner?

Labor Law §240 puts the duty to provide proper ladders, scaffolds and other protection on contractors and owners. The only owners it leaves out are owners of one- and two-family dwellings who contract for the work but don't direct or control it, so an apartment building owner is not exempt. A worker who falls from a roof or a ladder on your building can bring the claim to you. Before any roofer, painter or contractor starts, get a certificate showing their general liability and workers' comp, with you named as additional insured, and a written contract with an indemnity clause.

Is lead paint covered?

Read the exclusions before you compare prices, because some habitational liability policies exclude lead. New York's lead rental registry law, Public Health Law §1377, covers residential buildings with two or more units built before 1980 in communities the Department of Health names, and the owner certifies the property free of lead paint hazards after inspections at least every three years. Federal rules add a lead disclosure and pamphlet before a lease is signed in pre-1978 housing, and certified renovators for paid work that disturbs paint. Keep the certifications, disclosures and contractor paperwork; carriers ask.

Do you insure buildings outside the Capital Region?

Yes, anywhere in New York. I meet owners in person in Albany, Rensselaer, Saratoga, Schenectady, Warren and Washington counties and work by phone, email and video everywhere else. Once you choose and the policies are in force, I get you the certificates for your lender, and I handle the audits and claims afterward.

Get a quote for your business

Tell me what you do, where, and roughly what payroll looks like. Quotes come from the private carriers I represent, usually within days.

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Service area

Where I work

I'm based in Clifton Park and work in person across six counties, the four on the map plus Warren and Washington, or by phone.

Ibrahim Afyon's four core service counties in New York's Capital Region A north-up map of the four core counties: Saratoga, Albany, Schenectady and Rensselaer. Warren and Washington counties, which I also serve in person, lie to the north and are not drawn. Clifton Park is marked as the office. Other square markers show Halfmoon, Malta, Ballston Spa, Saratoga Springs, Albany, Colonie, Latham, Guilderland, Delmar, Schenectady, Niskayuna, Rotterdam, Troy, East Greenbush and Brunswick. County borders come from NYS GIS; community markers use Census representative locations. Clifton Park — office Clifton Park MY OFFICE Halfmoon — Saratoga County Halfmoon Malta — Saratoga County Malta Ballston Spa — Saratoga County Ballston Spa Saratoga Springs — Saratoga County Saratoga Springs Albany — Albany County Albany Colonie — Albany County Colonie Latham — Albany County Latham Guilderland — Albany County Guilderland Delmar — Albany County Delmar Schenectady — Schenectady County Schenectady Niskayuna — Schenectady County Niskayuna Rotterdam — Schenectady County Rotterdam Troy — Rensselaer County Troy East Greenbush — Rensselaer County East Greenbush Brunswick — Rensselaer County Brunswick Glenville — Schenectady County Glenville Scotia — Schenectady County Scotia Rensselaer — Rensselaer County Rensselaer
Squares mark communities; the double square is my office. County borders are simplified from NYS GIS data; community squares show representative locations.
Saratoga County
Clifton Park · Halfmoon · Malta · Ballston Spa · Saratoga Springs
Albany County
Albany · Colonie · Latham · Guilderland · Delmar
Schenectady County
Schenectady · Niskayuna · Rotterdam · Glenville · Scotia
Rensselaer County
Troy · East Greenbush · Rensselaer · Brunswick

Close to the Clifton Park office: Clifton Knolls, Country Knolls, Rexford, Vischer Ferry, Jonesville, Groom's Corners and Halfmoon across Route 9 — I'll come to you at home.