Protecting Your Historic Investment: Why Brooklyn Brownstone Restoration Requires Specialized Insurance Coverage in 2024
Brooklyn’s iconic brownstones represent more than just architectural beauty—they’re significant financial investments that require specialized insurance protection, especially when undergoing restoration. These 19th-century brownstones with carved sandstone facades are highly sought after by homebuyers, but the same reasons that make them desirable are often the same reasons why special precautions need to be taken when shopping for insurance coverage.
The Unique Insurance Challenges of Historic Brownstone Restoration
Because of their history and age, renovations can lead to some unpleasant hidden discoveries, like water leaks and electrical issues. When it comes to damage from fire or wind, many Brooklyn homeowners are surprised to learn that standard homeowners insurance policies won’t cover the costs of restoring a brownstone to its original construction. Many were built with construction methods and materials that are no longer standard — like hand-laid masonry and wood joists — and have aging plumbing and electrical systems. That complexity makes repairs more expensive and maintaining building code compliance more difficult after a loss.
Determining the replacement costs of a historic building becomes more challenging, especially if it has unique architectural features or construction materials—or if the building needs to comply with specific guidelines to preserve its historic integrity. Working with an insurance partner who specializes in brownstones and historic properties will ensure the correct valuation for your insurance policy.
Essential Coverage Requirements for 2024 Brownstone Renovations
Ordinance or Law Coverage
Unless they’ve been updated, older buildings—including brownstones and other historic properties—typically don’t comply with current construction codes. A standard building insurance policy only covers the expense of restoring the property to its previous state; it won’t pay for upgrades required for code compliance. Enter Ordinance or Law coverage, which provides extra funds for this express purpose. When shopping for insurance for a brownstone or other older building, you should consider this added protection.
Specialized Materials and Labor Coverage
Brownstone homes often require specialized materials and labor for specific repairs, especially with their historical features. Insurance companies may be hesitant to cover the high costs of these repairs, making it difficult to find adequate coverage. If the policy is not designed for historic homes, the insurance company may become hesitant to cover the full cost, causing the homeowner to pay out of pocket for the rest of it.
Business Income Protection
If a covered loss forces a closure, the property owner may lose rent or revenue during repairs. Business Income coverage reimburses those losses and helps cover ongoing expenses while the building is being restored. Even for fully residential buildings, this coverage can be essential when units must be vacated after a claim.
The Cost Reality of Brownstone Insurance in 2024
The cost of a policy that will adequately protect a brownstone can be as much as 40 percent higher than a standard Brooklyn homeowners insurance policy. However, the additional coverage and peace of mind are often worth the price to those who want to protect their historical Brooklyn investment. According to figures, a full façade replacement could run anywhere from $70,000 to hundreds of thousands of dollars. If you have brownstone insurance in Brooklyn, you will be able to repair and/or replace the façade at the fraction of the cost that you would pay without it.
Why Standard Homeowners Insurance Isn’t Enough
Historic homes, like brownstones, have distinct architectural styles and classical features that require separate insurance coverage. Standard homeowners’ insurance policies often fail to provide enough coverage and protection for these historic homes. Comprehensive coverage is needed for these buildings to protect their history and ensure their architecture is preserved after a claim.
Some areas of NYC require historical homes to be renovated by historical preservation societies, such as HOA requirements and regulations depending on the home’s location and age. Since brownstones are older buildings with special features like narrow staircases, loft ceilings, and chimneys, they have unique insurance considerations.
Finding the Right Insurance Partner in Brooklyn
When selecting insurance for your Brooklyn brownstone restoration project, working with a local, experienced agency is crucial. Max J. Pollack & Sons Insurance, serving clients throughout the entire greater New York City area from their office in Park Slope, Brooklyn, is a family business that has been serving the New York Metropolitan community for over 75 years. They believe that the ongoing success of their company is due to a combination of extensive insurance industry knowledge, coupled with something you don’t see too often in today’s world — old-fashioned, personalized attention to our customers’ needs.
For comprehensive protection of your historic Brooklyn investment, consider Brooklyn Homeowners Insurance that specializes in the unique needs of brownstone owners. As a property and liability insurance broker in Park Slope, Brooklyn, established in 1936, Max J. Pollack & Sons is a family owned and operated business serving the New York community for nearly 80 years.
Key Considerations for 2024 Renovations
Homeowners insurance does not cover home renovation directly, and your existing home insurance policy will likely need to be adjusted following the completion of your renovations. Significant home renovations can impact the value of your home, and you may need to adjust your homeowners insurance accordingly. Adding square footage or valuable upgrades could increase your insurance premium.
Some carriers offer endorsements, such as builder’s risk insurance, to ensure you have enough coverage during the renovation process. This is particularly important for brownstone renovations, which often involve extended timelines and specialized materials.
Water Damage and Infrastructure Concerns
A variety of factors—including increased rainfall from global warming—make sewer and water backup a common problem in the five boroughs. More than 5,000 New Yorkers reported sewer backups between July and October 2023, an increase of nearly 14% over the same period in 2022. Standard insurance policies typically only cover accidental water damage from a sudden event, like a burst pipe. Sewer/Water Backup coverage can fill this critical gap for a nominal fee.
Conclusion
Brooklyn brownstone restoration in 2024 requires more than just architectural expertise—it demands comprehensive insurance protection that understands the unique challenges of historic properties. If you’re lucky enough to live in a beautiful brownstone or a similar historic building with unique architecture and history, make sure to properly insure it so it can be restored properly in the event of a claim. Specialized insurance partners are here to assist you in finding the right policies at affordable prices.
Don’t let inadequate insurance coverage turn your dream restoration into a financial nightmare. Work with experienced professionals who understand the intricacies of insuring Brooklyn’s historic brownstones and can provide the specialized protection your investment deserves.