Page 1 - The NY Cooperator August 2020

August 2020 COOPERATOR.COM continued on page 6 claims from COVID-19 and any future pandemics, the actuaries will have to figure out what such new variables mean in terms of risk expo- sure—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, other carriers that were a little less aggressive in their verbiage are going continued on page 6 Residential communities such as co- ops, condos, and HOAs 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, ultimately, it’s the board of directors or trustees that makes policy and determines the continuing health of the community. Board posi- tions are filled by unit owner or share- holder volunteers—the positions are almost universally unpaid. Community members give of their time and exper- tise freely, and with the intent to do their ‘civic’ duty and protect the investment of themselves and their neighbors. Often, residents with specific skills relevant to governing and managing property are ready, willing, and able to contribute their knowledge to the com- munity. Boards often feature a concen- tration of attorneys, accountants, and business management professionals. But even these competent individuals 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 es- tate: every property is unique. So how should new board members get, well, onboarded? Should they take a course through the Community Asso- ciations Institute (CAI) or some similar local support organization for multifam- ily boards? Should building management or the building’s attorney and accountant hold an orientation to bring them up to speed? Should an existing board member mentor a new member and debrief them 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. Co-op, condo, and HOA 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- erage—calibrate new crises into risk analysis going forward. As carriers re-evaluate potential 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 peo- ple you grill with on a summer afternoon; the providers of a spare cup of sugar when you run out; the folks who water your plants when you leave town … some even might have attended your child’s wedding or helped you through trying times. But re- gardless of the size, location, or overall co- hesion of your community, at some point you’re likely to have at least one neighbor who disrupts the harmony and infringes on the peaceful enjoyment of your home. While most of us in multifamily hous- ing have come to accept this inevitabil- ity as a cost of communal living, there are some situations that cross the line from minor nuisance to legitimate harassment. Knowing 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 ‘persistence’ or style of conflict management can be another’s criminal complaint. Harassment: Difficult to Identify, Harder to Prove Adding to the interpersonal complex- ity, the legal system deals with harassment in different ways, depending on where you reside and the type of harassment being al- leged. Laws on harassment vary by state, and levels of criminality can differ within those jurisdictions. 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, Insurance Coverage vs. COVID-19 Co-ops & HOAs May Be Left Holding the Bag BY A.J. SIDRANSKY Handling Harassment in Multifamily Housing When Trash Talk Turns to Transgression BY DARCEY GERSTEIN What New Board Members Need to Know (And How to Learn It) BY A.J. SIDRANSKY 205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED continued on page 7