Jackson Heights Life

My building's management company recently sent out a letter announcing an 8% increase in maintenance fees.  The reason (they say) is due to a major increase in insurance rates.  The management company claims  "Some insurance carriers are simply walking away from residential buildings and not renewing."

Have other buildings seen insurance increase?   Interested to know if this is a trend, or just the management company being dramatic.

I work for an NYC based real estate developer. Obviously you don't live in a rental, but residential multifamily insurance rates have jumped in the last 18-24 months. I've seen our portfolio (thousands of units) get hiked 30-40% on insurance. It's not surprising to see this happen.

I can't speak to the specific reasons why this is taking place. However, a larger managing agent (more units, properties) may be able to leverage cheaper rates. I would ask for further explanation and a detail of the insurance marketing efforts.

My building's management company recently sent out a letter announcing an 8% increase in maintenance fees.  The reason (they say) is due to a major increase in insurance rates.  The management company claims  "Some insurance carriers are simply walking away from residential buildings and not renewing."

Isn't it your board that decides this?  Or if in a condo, whatever the equivalent is? I'm not sure how all that works in a condo.

I'm pretty sure we got a memo from our management company this year in lieu of when we usually find out about maintenance for the next year (shareholders meeting, which had to be put off because of Covid) but it was framed as "we are telling you this on behalf of your board." No deep explanation was needed as our maintenance did not increase this year (after several years of increases).