There are senior living communities across the United States with buildings that were constructed 30 to 40 years ago. Many of these buildings have roofing, sprinkler, plumbing, and electrical systems that are reaching critical failure points and presenting greater property and liability exposures for owners.
Aging Buildings Mean Increased Risks
Senior living facilities are typically considered habitational risks, which come with greater exposures. They operate in a highly sensitive environment where residents are older, more vulnerable, and often require continuous care. An infrastructure failure at a senior living facility is not just a maintenance issue; it can be a potential life-safety and liability event.
Roofs at or beyond their expected lifespan can allow moisture intrusion, leading to structural damage, electrical shorts, and mold claims. Outdated HVAC systems can compromise air quality and trigger health complaints among the facility’s population. Corroded pipes increase the likelihood of water losses that damage resident rooms, medical equipment, and life-safety systems. In the worst cases, a single leak or electrical fire can displace dozens of residents and lead to business interruption or bodily injury claims.
Sprinklers, Alarms, and Life-Safety Compliance
Fire protection remains one of the most scrutinized aspects of senior living facilities. Properties with outdated or partially upgraded sprinkler systems may fail to meet NFPA 13 or local fire code standards. Some facilities operate with mismatched system components, which create hidden gaps in protection.
These deficiencies can lead to heightened scrutiny from state licensing bodies and local fire marshals, and they present challenges for facilities in finding insurance. When a system fails during a fire event, the exposure is twofold: property loss from fire damage and liability from delayed evacuation or injury.
Upgrading life-safety systems is both a regulatory obligation and a critical risk-management strategy. Modern sprinklers, addressable alarm systems, and 24/7 monitoring can reduce both loss severity and legal exposure, often improving insurability and premium stability.
Greater Liability Risks from Deferred Maintenance
Delaying building maintenance has become one of the most common red flags in senior living underwriting. For insurers, outdated infrastructure signals a higher probability of claim frequency and severity. For property owners, it can lead to inspection deficiencies, compliance violations, and even allegations of neglect.
What’s more, the physical deterioration of building systems typically doesn’t happen overnight, but the financial consequences can be sudden and severe. Consider the potential chain reaction of a failed roof membrane: water infiltration damages insulation and wiring, shorting out sprinklers and alarm panels. Repairs may take weeks, forcing temporary evacuations and lost revenue. If a resident slips in a water-damaged corridor or a family alleges unsafe conditions, a single incident can evolve into a multi-million-dollar liability claim.
In fact, during litigation, plaintiffs’ attorneys will frequently point to evidence of deferred maintenance as proof of negligence, especially in resident injury or wrongful-death cases
Protecting Property, Residents, and Reputation
Investing in structural systems and upgrades, along with implementing risk-mitigation measures, not only provides a safer environment for a senior living facility’s residents but also results in more favorable insurance underwriting outcomes, including broader coverage terms and pricing stability.
About Seneca Insurance Companies
Seneca Insurance Companies provides Property insurance for various senior care risks, including nursing homes, assisted living facilities, long-term care, independent living, and continued care retirement communities (CCRCs).