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Insurance Coverage    vs. COVID-19   HOAs May Be Left Holding the Bag  BY A J SIDRANSKY  August  2020        NEWENGLANDCONDO.COM  erage—calibrate new crises into risk analysis going forward. As carri-  ers re-evaluate potential claims from COVID-19 and any future pan-  demics, the actuaries will have to figure out what such new variables   mean in terms of risk exposure—and, by extension, coverage options.   “Many carriers took the experiences of the SARS and ebola \[out-  breaks\] and used them to write some verbiage into policies, so that in-  sureds and insurers would be clear on coverage,” says Fleming. “Now,   205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED  continued on page 6   THE CONDO, HOA & CO-OP RESOURCE  CONDOMINIUM  NEW ENGLAND  Residential communities such as condos,   HOAs, and co-ops are unique in that they   take the governance of their properties into   their own hands. While most properties do   have managing agents to oversee staff and to   handle the day-to-day operations, ultimate-  ly, it’s the board of directors or trustees that   makes policy and determines the continuing   health of the community. Board positions are   filled by unit owner or shareholder volun-  teers—the  positions are  almost universally   unpaid. Community members give of their   time and expertise freely, and with the intent   to do their ‘civic’ duty and protect the invest-  ment of themselves and their neighbors.  Often, residents with specific skills rel-  evant to governing and managing property   are ready, willing, and able to contribute   their knowledge to the community. Boards   often feature a concentration of attorneys,   accountants, and business management pro-  fessionals. But even these competent indi-  viduals still have much to learn and absorb   when they are elected to the board. Every   building and community has a history and   a set of circumstances all its own. That’s a   compelling thing about real estate: every   property is unique.   So how should new board members get,   well, onboarded? Should they take a course   through the Community Associations In-  stitute (CAI) or some similar local support   organization for multifamily boards? Should   building management or the building’s at-  torney and accountant hold an orientation to   bring them up to speed? Should an existing   board member mentor a new member and   debrief them on the ins and outs, the do’s and   don’ts of the building? Turns out, just as in-  dividual properties have their own cultures   and challenges, they also have their own   processes for orienting new board mem-  bers—though of course, there is also a lot   By its very definition, insurance coverage is planned protection against both the expected   and the unexpected. Life insurance clearly provides financial security in the event of death,   which of course is an eventual certainty. But at the same time, it also provides for circumstances   in which someone’s passing is early or sudden. On the other hand, something like flood insur-  ance provides protection against a ‘known unknown’—a potential threat that can be prepared   for to some degree through intelligent analysis of risk. As such, insurance is a generally ac-  cepted method of handling potential risk in the business world. Pay a little now, and get what   you need to cover the cost of the unexpected later, when and if you need it. Condos, HOAs, and   co-ops properties and owners are well acquainted with this business practice and carry several   types of insurance to cover all kinds of possible emergencies. So… how does that shake out in   the current COVID-19 crisis?  Responding to the Unknown  While  insurance policies  are forward-facing—meaning  they attempt to  manage future   risk—they are based on past data, such as how probable similar events were in the past, and   how past experience can help us manage the same or similar circumstances in the future. How-  ever, when it comes to something as unprecedented as the current pandemic, insurance carri-  ers are in new and uncertain territory—often to the detriment of those looking for coverage.   Ryan Fleming is a partner at JSG Insurance, with offices throughout the Northeast. He ex-  plains, “Insurance policies in general aren’t designed to respond to something like this. It’s trig-  gered by a sudden, accidental, unexpected occurrence. In this case, with this type of pandemic   growth, policies aren’t really designed to cope with it.”   Insurance actuaries—the statistical scientists who calculate and interpret risk on behalf of   insurance companies to help them set premiums and determine the extent (and limits) of cov-  Whether  you  live  in  a  super-luxe  Park   Avenue co-op in New York City, a beach-  front condo in Florida, a sprawling HOA in   Nevada, or a multifamily community in the   Berkshires, one thing is certain: you have   neighbors. Hopefully they’re the people you   grill with on a summer afternoon; the pro-  viders of a spare cup of sugar when you run   out; the folks who water your plants when   you leave town … some even might have at-  tended your child’s wedding or helped you   through trying times. But regardless of the   size, location, or overall cohesion of your   community, at some point you’re likely to   have at least one neighbor who disrupts the   harmony and infringes on the peaceful en-  joyment of your home.    While most of us in multifamily hous-  ing have come to accept this inevitability as   a cost of communal living, there are some   situations that cross the line from minor   nuisance to legitimate harassment. Know-  ing the difference is important—but it can   be tricky to discern, and even more difficult   to address. After all, ‘harassment’ is a term   that gets thrown around a lot, but is often a   subjective disputation. One person’s ‘persis-  tence’ or style of conflict management can   be another’s criminal complaint.     Harassment: Difficult to Identify, Harder   to Prove  Adding to the interpersonal complexity,   the legal system deals with harassment in   different ways, depending where you reside   and the type of harassment being alleged.   Laws on harassment vary by state, and levels   of criminality can differ within those juris-  dictions.    In New York State, for example, accord-  ing to several attorneys consulted for this   article, there is no civil cause of action for   harassment. That means that any action   taken against an accused harasser must be   pursued as a criminal case. Depending on   a number of factors, the harassment can be   prosecuted as a misdemeanor, a violation,   or a felony.    Under New York’s Human Rights Law,   sexual harassment, discriminatory harasse-  ment, or any type of harassment that rises   What New Board Members   Need to Know   (And How to Learn It)  BY A J SIDRANSKY  Handling Harassment   in Multifamily Housing  When Trash Talk Turns    to Transgression  BY DARCEY GERSTEIN  continued on page 8   continued on page 7 


































































































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