BY STEPHEN ELBAZ, nyarm
BUILDING INSURANCE CHECKUPS
BY
STEPHEN ELBAZ, nyarm
Many managers remember a few short years ago, when insurance companies were excluding lead paint claims from liability coverage and asking for hefty premium increases - for less coverage!
It appears that the tables have turned in the building’s favor. Premiums are down as much as 25% from one to two years ago. A few companies no longer exclude lead paint claims from liability, and companies are including coverage such as Directors & Officers (for co-ops and condominiums) at a minimal charge instead of a hefty premium in itself.
According to Robert Eisman of Unilite Insurance (516-328-1700) buildings should carry coverage equal to $75.00 per square foot of "All Risk" (fire, collapse, etc.) insurance and a minimum of two million dollars of liability coverage.
He further advises that "Umbrella" packages of liability of up to one hundred million dollars are available at extremely low premiums.
While one hundred million dollars sounds excessive, they are real numbers given the fact that juries have handed out staggering awards to people injured/killed in buildings.
Robert further mentions that small buildings (under 20 units) can purchase a three year policy, with the premium and coverage locked in. In any event managers are encouraged to shop around in this very competitive market.
It is essential that managers verify that they are specifically named as additional insureds on every building they manage. The management company should be listed on the declaration page or "deck sheet". Binders should not be relied on.
On another note, managers are reminded that all buildings containing rent stabilized apartments must be registered by July 31, 1999 with the New York State DHCR. Forms can be picked up at any DHCR borough office.
Stephen Elbaz-nyarm, is Secretary of NYARM and President of Esquire Management Corporation, a full service management company in New York and New Jersey. Readers are encouraged to contact Stephen at (718) 623-2300 or fax (718) 623-2322 with real estate management questions, concerns, and helpful hints. Questions will be thoroughly researched and answered in this column
