The NYT on ‘Additional Insured’ Requirements — Here’s What Boards and Owners Should Take Away
Credit: Nadia Pillon
If you’ve ever opened an email about your insurance coverage and thought, “Wait… what does this mean for me?” — you’re not alone.
At The Folson Group, we spend our days navigating the intersection of boards, property managers, contractors, and homeowners. While we’re not insurance professionals, we’re deeply familiar with how these requirements show up in real life—across co-ops, condos, homeowners associations, and even commercial spaces.
From reviewing contractor COIs on multimillion-dollar projects to advising building boards on liability and risk, we understand exactly why these requirements exist and how they affect owners.
So when the New York Times (NYT) reached out to our own Tina Larsson for their latest Ask Real Estate column about a Lower Manhattan insurance question, we were thrilled to help clarify an issue that affects far more than co-op shareholders.
Here’s our expanded, homeowner-friendly breakdown of what “additional insured” means and why buildings often require it.
What “Additional Insured” Really Means
No matter where you live—or what type of property you own—you’ve probably encountered this term.
In NYC co-ops and condos, it’s extremely common, especially in buildings managed by third-party property management firms. Boards often require shareholders or unit owners to list both the building and its management company as “additional insured” on their homeowner’s insurance policy.
But this concept isn’t limited to apartments:
Suburban homeowners may need to add an HOA
Contractors often add clients
Business owners add landlords
Commercial tenants add vendors
The mechanism is the same everywhere.
At its core, it’s simple:
If a problem originates in your unit or space and affects another area, your policy is typically the first to respond. Adding the building (or another party) as an additional insured protects everyone from unnecessary legal claims or disputes.
It’s not about accessing your personal details.
It’s not punitive.
It’s straightforward risk management.
Why So Many Buildings Require It
When something goes wrong—a leak, a fire, or an appliance mishap—the impact rarely stays contained. In co-ops, condos, and townhouses, issues spread quickly. Even in standalone homes, problems can involve HOAs, neighbors, or utility infrastructure.
Boards and managers require “additional insured” status because it:
Creates clarity around who handles what
Reduces preventable disputes
Helps stabilize building-wide insurance premiums
Streamlines claim handling
Ensures that the responsible party’s policy responds first
From our work across hundreds of NYC buildings, we see firsthand that this protects the building and homeowners equally.
Why Some Insurance Companies Refuse
This is where the NYT / New York Times column struck a nerve.
Some insurance carriers—often older policies or companies unfamiliar with NYC buildings—simply won’t add additional insured parties. They may argue that:
The building’s master policy should cover itself
Sharing limits may reduce coverage available to the homeowner
Their underwriting guidelines prohibit it
If your insurer refuses, nothing is “wrong”—but it may signal that it’s time to switch to a carrier that understands the norms of your specific housing type.
Before Switching—Check Your Policy
Some homeowner’s policies automatically extend coverage to entities sued because of your negligence. This language sometimes satisfies boards or management companies without requiring you to list anyone explicitly.
When this situation comes up, we recommend:
Reviewing your policy for this type of clause
Sending that section to your property manager, board, or HOA
Asking whether it fulfills the requirement
Sometimes it’s enough.
Other times, you’ll still need a policy that can issue a formal certificate of insurance.
What This Means for Homeowners Everywhere
Even though this NYT question came from a Lower Manhattan co-op owner, the lesson applies far beyond NYC:
Co-op owners
Condo owners
Suburban homeowners
Townhouse residents
HOAs
Landlords
Property managers
Business owners
If you share walls, floors, ceilings, plumbing lines—or work in a space where responsibility overlaps—you will inevitably encounter the concept of “additional insured.”
Understanding how it works helps you avoid confusion, delays, and unnecessary finger-pointing when something goes wrong.
Need Clarity for Your Building or Board?
If your board, HOA, tenants, or owners are working through insurance requirements and you want a clear, simplified path forward, we can help you interpret what the building needs, what the homeowners need, and how to keep everyone aligned.
For condo and coop boards that are interested in a free review of your insurance policy or renewal quote, reach out to us.
Original NYT / New York Times Source
You can read the full column here:
Ask Real Estate: What Kind of Homeowners' Insurance Do You Need in a Co-op?