Primary hazards, required endorsements, and FAIR plan availability for New York rental properties
The New York FAIR plan / specialty program provides coverage when admitted standard market carriers decline to write a policy. Contact the program directly or ask your insurance agent to submit an application. FAIR plan premiums are typically higher than standard market rates — continue shopping admitted carriers annually.
The New York state insurance department regulates admitted carriers, investigates claim disputes, and maintains a licensed-agent directory.
New York Insurance Department →
You should use a landlord-specific dwelling fire policy (DP-3 form) rather than a homeowner's policy (HO-3) for non-owner-occupied rentals. Most homeowner's policies exclude rental activity or void coverage if you rent the property. A DP-3 is designed for investment properties — it covers the structure, liability, and loss of rents when a covered peril makes the unit uninhabitable. In New York, standard DP-3 policies are available from most admitted carriers.
No. Flood damage from any source — storm surge, river overflow, flash flood, or groundwater — is excluded from all standard DP-3 landlord policies nationwide, including in New York. You must purchase a separate National Flood Insurance Program (NFIP) policy through any licensed insurance agent, or a private flood insurance policy. The NFIP has a 30-day waiting period for new policies — purchase before a storm threat is imminent.
No. Earthquake damage is excluded from all standard dwelling fire (DP-3) policies. New York has relatively low seismic risk, but an earthquake endorsement can still be added to most DP-3 policies for a modest premium in most of the state.
Loss of rents (or "fair rental value") coverage reimburses the landlord for lost rental income while the property is uninhabitable due to a covered peril — for example, if a fire causes the tenant to vacate during repairs. Most DP-3 policies automatically include loss of rents equal to 10–20% of the dwelling coverage limit. Some policies cap the loss-of-rents period at 12 months; others run until the property is repaired. Review your policy's loss-of-rents sub-limit and time cap — in major-loss scenarios (such as total rebuilds after a tornado or wildfire), the repair timeline can exceed 18–24 months.
Hazard data: FEMA National Risk Index (fema.gov) and USGS National Seismic Hazard Maps (usgs.gov/programs/earthquake-hazards). FAIR plan data: NAIC and state insurance department websites. Last updated April 29, 2026. For informational purposes only — not insurance or legal advice. Consult a licensed insurance agent for your specific property and coverage needs.
