Landlord Insurance Requirements in NYC: What Lenders Ask For

The short answer

New York law does not require every landlord to buy property or liability insurance. In practice, almost every owner with a mortgage must, because the loan documents require it. If you have employees, such as a super or porter, New York law requires workers compensation and disability benefits coverage. Leases and management agreements add their own requirements on top.

What lenders usually require

Property coverage on the building, often at replacement cost, with the lender named as mortgagee
General liability at a minimum limit set in the loan documents
Loss of rents for a set number of months
Flood insurance when the building is in a flood zone the lender cares about
Sometimes an umbrella, equipment breakdown, or ordinance or law coverage
A deductible no higher than the lender allows

Ask the lender for the insurance requirements in writing. Send them with your quote request so the policy matches. If coverage lapses, the lender can place its own coverage on the building and charge you for it, often at a higher cost and with less coverage for you.

What New York law requires when you have employees

If anyone is on your payroll, such as a superintendent, porter or handyman, New York requires workers compensation and disability benefits coverage, which includes paid family leave. The building policy does not replace either one. Independent contractors you hire should carry their own coverage. Ask for their certificates before they start work.

What contracts usually require

Management agreement. Usually asks you to name the managing agent as additional insured on your liability policy.
Commercial leases. In a mixed-use building, you usually require the store tenant to carry liability and name you as additional insured.
Co-op or condo board. If you own a unit you rent out, the bylaws may require you to carry your own unit owner policy.
Contractors. Your renovation contracts should require the contractor to name you as additional insured.

Can I require my tenants to carry renters insurance?

Many landlords ask for it in the lease. Rules on this can vary by building type and program, especially for rent-stabilized and subsidized units. Check with your attorney before you make it a lease condition.

Common questions

Is landlord insurance required by law in New York?

Not by a general statute. Your lender almost always requires it, and New York requires workers compensation and disability benefits if you have employees.

What liability limit do NYC lenders usually require?

It varies by lender and loan size. The requirement is in your loan documents. Ask the lender for it in writing.

What is force-placed insurance?

If your coverage lapses, the lender can buy a policy on the building and bill you for it. It usually protects the lender, not you, and often costs more.

Do I need workers compensation for my super?

Yes. A superintendent on payroll is an employee. New York requires workers compensation and disability benefits coverage.

Should my managing agent be additional insured?

Most management agreements require it on the liability policy. Send the clause and the agent's legal name.

How do I check if my building meets my lender's requirements?

Send us the lender's requirements and your declarations page. A licensed broker will compare them at no cost.

Talk to a broker

Get a free policy checkup Get a quote

Or call (516) 226-7969, Mon to Fri, 9 to 6 ET. SimpleINSURE Brokerage LLC, 900 Stewart Ave Ste 210, Garden City, NY 11530. NY DFS License BR-1984615.

Coverage descriptions are general summaries. The issued policy governs. Coverage is subject to the insurer's underwriting and the terms of the policy.

Landlord insurance requirements in New York City