The insurance blind spot most buildings miss

Insurance was created to give us peace of mind—to protect our homes, our buildings, and our communities when the unexpected happens. It’s meant to be a safeguard, ensuring that when disaster strikes—a burst pipe, a fire, a major storm—we can recover quickly and move forward. But too often, dealing with insurance feels anything but reassuring. Instead of clarity and security, board members and homeowners face a maze of confusing policies, rising costs, and fine print that makes it hard to know if their building is truly covered.

How do you avoid overpaying? How do you make insurance work for you, instead of the other way around?

On this episode of Building Blocks, Daisy CEO and co-founder Yotam Cohen sat down with Maya Prosor, Chief Business Officer and founding member at Lemonade, to break down how technology and consumer-first thinking are reshaping the insurance industry. They cover everything from the mindset to rebuild an industry to insights on how to make smarter, more informed insurance decisions.

Rebuilding insurance from the ground up

"Traditional insurance is filled with friction," Maya explained. "The process is slow, the policies are confusing, and in many ways, the system isn’t built for the customer—it’s built to manage risk for the insurer."

Lemonade set out to change that by reinventing the insurance experience from the ground up. Instead of relying on legacy systems and commission-driven agents, Lemonade uses AI-powered underwriting and claims processing to make insurance faster, more affordable, and easier to understand. Their model also incorporates behavioral economics to reduce fraud and align incentives—rather than profiting from unpaid claims, Lemonade takes a flat fee and donates any leftover money to causes chosen by policyholders - so far they’ve contributed over $10 million dollars to charitable causes.

"Insurance companies shouldn’t be in a position where they benefit when they deny claims," Maya noted. "That’s what we wanted to fix."

This shift in approach means customers experience greater speed, transparency, and control over their policies—unlike traditional insurers, where outdated systems create bottlenecks and disputes. AI-driven processes eliminate the inefficiencies of manual underwriting and claims handling, ensuring that customers receive responses in minutes rather than enduring weeks of back-and-forth.

Why insurance costs are rising—and what you can do about it

If your building’s insurance premium just went up—potentially by as much as 30%—you’re not alone. Several factors are driving these increases:

• More natural disasters. Hurricanes, wildfires, and floods are happening more frequently, leading to higher claims.
• Inflation. The cost of materials and labor is rising, making it more expensive to repair damage.
• Regulatory delays. Insurance companies need government approval to adjust pricing, leading to sudden spikes when rates finally catch up.

"We’re seeing insurers pulling out of certain markets altogether," Maya pointed out. "That’s how challenging the environment has become."

How to reduce your insurance costs & avoid common pitfalls

✅ Compare policies. Don’t assume your current provider is offering the best rate. Shop around and negotiate.
✅ Adjust your deductible. "Insurance should be thought of as something that, if you are forced to pay for it, would really put you back financially in life," Maya noted. A higher deductible will help ensure you’re really covered when you need it.
✅ Know your building’s master policy. If you live in a condo, find out what’s covered by your building’s insurance so you don’t overpay for duplicate coverage.
✅ Choose the right coverage levels. Being underinsured is risky, but being overinsured means paying for coverage you don’t need. Find the right balance.
✅ Be strategic about claims. Frequent small claims can lead to premium hikes or even policy cancellations. Save insurance for major incidents.
✅ Consider relevant add-ons. Depending on where you live, essential add-ons like water/sewer backup coverage for New Yorkers can save you from costly surprises.

While rising costs are a reality, avoiding these common mistakes can help ensure you're not paying more than necessary.

How AI & technology are transforming insurance

"The way insurance has been done for decades isn’t the way it has to be done," Maya emphasized. "With AI and automation, we can remove inefficiencies and make the process smoother for everyone."

🔹 Instant policy changes. Companies like Lemonade let customers adjust or cancel policies in seconds via an app.
🔹 Faster claims processing. AI-driven systems mean claims can be approved in minutes instead of weeks.
🔹 Smarter pricing. Data-driven risk assessments lead to fairer premiums and fewer surprises.
🔹 Automated paperwork. AI can scan and process documents instantly, eliminating manual delays.
🔹 Better fraud detection. Machine learning can spot suspicious claims faster than humans.
🔹 More responsive service. AI-powered chatbots provide instant answers and support.

Final thoughts: Taking control of your insurance decisions

"The best thing you can do is be proactive," Maya advised. "Know what’s in your policy, understand your coverage, and don’t be afraid to ask questions."

If you’re a condo or co-op board member, you don’t have to accept skyrocketing insurance costs and outdated processes. Here’s what you can do:

✅ Review your building’s policies regularly. Make sure you’re not overpaying for unnecessary coverage.
✅ Work with insurers who use modern tools. Transparency and efficiency matter.
✅ Ask questions. If something doesn’t make sense, challenge it.

By taking a proactive approach, board members can make smarter insurance choices—ensuring their buildings are protected without wasting money. The future of insurance is faster, more transparent, and built around customers. Make sure your building is part of it!

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