Common Building Code Violations in NYC – And How to Avoid Higher Insurance Costs

If you own property in New York, it's important to stay on top of building code violations—not just for your tenants' well-being, but also to protect yourself from expensive fines and costly insurance premiums.

Here’s a breakdown of the most common violations, how they affect your insurance, and how Serhey Davidson Corp can help you resolve them before they become a bigger issue.

Heat & Hot Water Violations

From October 1 to May 31, NYC law requires landlords to provide heat when it's cold outside. Hot water must be available year-round. If your building doesn’t meet these requirements, you could face violations—and fines.

Why it matters: Insurance underwriters may flag these issues when evaluating your property. Too many violations? You may be forced to use a non-standard carrier, which means higher premiums.

Pest Infestations

Mice, roaches, and bedbugs are more than just annoying—they’re health hazards. If landlords fail to provide proper pest control, they can receive violations.

Why it matters: Infestations often lead to secondary issues like mold and tenant complaints—both of which can complicate insurance applications or claims.

Mold & Water Damage

Leaks and damp conditions in older buildings can lead to mold, which poses serious health risks. Mold violations are increasingly common and can be expensive to fix if ignored.

Why it matters: Mold-related claims can be denied by insurers if the damage is linked to known negligence or ignored violations.

Lead Paint

Properties built before 1960 (or before 1978 under some conditions) are often flagged for lead paint hazards, especially if children live in the home.

Why it matters: If lead violations are found, insurance companies may require abatement before issuing a policy—or reject your application altogether.

Missing Smoke or Carbon Monoxide Detectors

It’s required by law to have working smoke and CO detectors in every unit. Missing or broken devices are an easy fix—but can result in serious violations if overlooked.

Why it matters: If a fire occurs and you're found to be in violation, your insurance company may deny the claim due to negligence.

Structural Problems

This can include cracked walls, unstable stairs, broken doors or windows, or unsafe conditions in general. Often seen in aging buildings.

Why it matters: Structural issues signal potential liability risks, making your property less attractive to insurers—and more expensive to insure.

Illegal Conversions

Think: basement apartments or subdivided units that weren't approved by the Department of Buildings. These can lead to immediate violations and possible vacate orders.

Why it matters: Illegal conversions are considered illegal acts—a major red flag for insurance providers. Claims could be denied entirely if something goes wrong in an unapproved space.

Plumbing, Sewage, Elevator Issues

Clogged lines, water backup, or malfunctioning elevators? These are all common violations that can quickly escalate into costly repairs.

Why it matters: Insurance underwriters might see these as signs of poor maintenance, which could push you into a higher-risk (and more expensive) insurance category.

Common Area Neglect

Rodents, overflowing trash, and unsafe conditions in hallways or stairwells all add to your violation record.

Why it matters: Even these seemingly small issues reflect on your overall property condition. It adds up—and underwriters will see it when reviewing your application.

Insurance Implications: What You Need to Know

Before offering coverage, insurance companies check public records for violations using the DOB’s Building Information System (BIS). They can search by address or property ID to find:

Open violations
Permits
Work orders

If they spot red flags, you may have to:

Use a non-standard insurance carrier (with higher premiums)
Fix the violations before being eligible for coverage

And in worst-case scenarios, claims can be denied entirely if the incident involves a violation considered illegal or negligent.

How Serhey Davidson Corp Can Help

At Serhey Davidson Corp, we make sure your property is violation-free before you apply for insurance. Here’s what we can do:

Connect you with licensed contractors to fix physical issues
Introduce you to architects and expeditors for legal compliance
Provide access to trusted repair services to keep your building safe and up to code

Don’t Let Violations Cost You Coverage

Courts have ruled that insurance companies can deny coverage if a housing code violation contributed to a fire, injury, or other claim. That includes:

Failing to meet fire safety standards
Gross negligence like ignoring structural hazards

Want to check the status of your property and see how we can help?

Common Building Code Violations in NYC – And How to Avoid Higher Insurance Costs