Insurance Rates Soaring? This Three-Year Lock Could Save You

Sponsored By Brownstone Agency, Inc.

The Brownstone Agency, Inc. has been providing quality and affordable insurance coverage for brownstone, townhouse, and multi-family owners, and condo and co-op boards since 1973.

Created By Brownstoner

Multi-family insurance rates have jumped 20 percent each year for the past two years. To offset this, Brownstone Agency offers a three-year prepaid policy to lock in this year’s rate.

But still, why the annual increases? Read on:

Natural disasters hit hard.
When storms, fires, and floods strike urban areas, insurance companies face massive payouts for repairs. This triggers a chain reaction: The major insurance companies that back up local insurers (reinsurers) raise their rates to cover mounting losses. Local insurance companies then pass on these higher costs to building owners. With catastrophic weather events becoming more frequent, especially in coastal regions, these costs keep accelerating.

Insurance companies are leaving the market.
Many insurance carriers have stopped covering apartment buildings because they’re losing money on these policies. With fewer companies offering coverage, the remaining insurers can demand higher premiums. Building owners, particularly in dense urban areas, now have limited options and must accept whatever rates they can find. This market consolidation has created a simple reality — fewer insurers mean higher prices.

More lawsuits, bigger payouts.
Property owners face increasing exposure to liability claims, and courts are ordering larger settlements when someone gets hurt on their property. From slip-and-falls to security incidents, these cases cost insurance companies more each year. To maintain profitability, insurers charge higher rates and require stricter safety protocols from building owners.

There’s a solution.
As Brownstone Agency‘s president John Simone explains, these challenges require innovative solutions. Brownstone Agency offers a unique three-year prepaid policy that locks in today’s rate through 2027, protecting owners from future increases. No other agency provides this option.

Want to secure your rate before the next increase? Contact Brownstone Agency today.