ARTICLES
The Future of Insurance
Change of Venue for 45 year old tradeshow
Property Tax Abatement
Electric Consumption Growing
Dates to Remember
THE FUTURE OF INSURANCE
BY GREGORY J. CARLSON, EXECUTIVE DIRECTOR
Insurance in the year 2002 will be the foremost uncertain
issue in your building's budget. Before September 11th,
an increase in insurance premiums of 10-15 percent was anticipated.
As the impact of that fateful day trickles down, a minimum
premium increase of thirty percent on expiring policies
is predicted.
One of the reasons for this ambiguity is that the reinsurance
companies that set the rates have yet to do so. Contractually,
the reinsurers have an annual agreement with the insurance
companies to publish their January 1st rates on November
1st of the prior year. As we went to press in late December,
no rate had been established.
Underinsured buildings are a major concern. If your building
is undervalued and has not been appraised in recent years
(and many have not been since the original policy was issued),
if a claim were to be made in the case of total destruction,
the company would face a huge loss. National indexes reflect
that most buildings are insured for only half of the real
cost of total replacement. Carriers are now advising if
you want true replacement cost, you should hire an appraiser
to re-evaluate the value of your property.
Note the following:
- Insurance costs are escalating;
- Your "agreed upon replacement costs" may increase
dramatically, thus pushing up the insurance premium;
- Your insurance carrier may not have the financial capacity
to cover the "replacement" costs to cover your
complex and you may end up layering the coverage with different
insurance carriers (e.g. umbrella liability coverage);
- Chubb Insurance, the largest underwriter of this type
of insurance, is no longer offering Directors and Officer's
liability insurance after current policies expire;
- If your building is situated in an airport flight pattern,
it may be more difficult to obtain insurance;
- Fewer carriers are insuring residential properties. With
less market competition, premiums are bound to rise;
- Increasing your deductible will not affect your insurance
premium.
SOLUTION - START EARLY. Urge your agent to start now,
before the expiration of your policy. Get as many quotes as
you can and make sure they reflect the current value of your
property. If your carrier was hit hard by the September 11th
attacks, you may experience a higher cost.
FEDERATION OF NY HOUSING COOPERATIVES
& CONDOMINIUMS ANNOUNCES CHANGE OF VENUE FOR 45-YEAR-OLD
TRADESHOW
All-Day Conference To Be Held Sunday April 7, 2002
At LaGuardia Marriott, 102-05 Ditmars Boulevard, Queens
The Federation of New York Housing Cooperatives and Condominiums
will hold its 45th annual seminar and tradeshow on Sunday,
April 7, 2002 at the LaGuardia Marriott Hotel from 9 AM -
4 PM.
The Federation tradeshow is the longest-running conference
in New York City for the real estate industry and we are confident
that those who attend the show will be thrilled with the convenient
and attractive new venue. In addition, we are certain our
founders Charles and Eva Rappaport would have whole-heartedly
approved.
The Federation will move the show to the newly refurbished
LaGuardia Marriott, 102-05 Ditmars Boulevard, East Elmhurst,
Queens. Held at Queens College for the past twelve years,
the new site is conveniently located to major highways and
public transportation, providing easy access for members and
the general public.
The conference rooms are situated on the same floor as the
exhibits, creating an easy flow of traffic between the seminars
and tradeshow. Instead of serving a sit-down lunch and awards
presentation, as we did previously when the show was held
at Queens College, we will have a
buffet lunch in the exhibition hall.
Other planned innovations include scheduled exhibitor demonstrations
throughout the day and a "Meet Your Representative"
booth, where attendees will be able to converse with newly
elected city officials.
In addition, for the entire day, one of the three seminar
rooms will be devoted to a cavalcade of experts on housing
issues. Every hour on the hour, one or two professionals will
give a brief presentation on a specific subject, then entertain
questions from the audience. Important issues,
including finance, legislation and security, are on the agenda.
The Federation conference has appealed to cooperative shareholders
and condominium owners for over four decades because of the
event's extensive education program and vendor exhibitions.
Scheduled seminar topics this year include energy, mold and
indoor air quality, insurance and disaster planning, and the
highly popular "Attorney's Round Table," an interactive
forum between the audience and a panel of real estate attorneys.
We look forward to seeing all our members, as well as many
new faces, on April 7th.
ELECTRIC CONSUMPTION GROWING
The Federation is driving headlong into ways of curtailing
electrical consumption in the cooperative and condominium
community. We have attended numerous meetings with government
officials and experts in the private sector.
The New York State Energy Research and Development Authority
(NYSERDA). Recently issued a Request For Proposal (RFP) for
a Comprehensive Energy Management (CEM) service program for
the residential community. This program will spur the installation
of sophisticated energy management systems and advanced metering
systems.
The Federation believes this is necessary in order to reduce
energy consumption in the residential sector. The Federation
also believes that cooperative shareholders and condominium
owners are the most likely to achieve success in this endeavor.
Therefore, we have joined with energy experts in order to
present our proposal for this much needed system. If the Federation
is successful, be prepared to hear from us on the many cost-effective
opportunities for your buildings.
PROPERTY TAX ABATEMENT
By now, your building's designated person should have received
the unit breakdown of the property tax abatement and the various
tax exemptions, including the final phase-in of STAR. If you
have not received the printout, please contact the New York
City Department of Finance at 718-935-6000 or 718-935-9500,
Monday through Friday from 9 AM - 4:30 PM. Automated assistance
is available at the above numbers Monday through Friday from
8:30 AM - 11:30 PM. You may also access information through
the government website www.ci.nyc.ny.us.
DATES TO REMEMBER
Monday, February 25, 2002 - The Co-op and Condo Expo,
NY Hilton Hotel
Sunday, April 7, 2002 - The Federation of New York
Housing Cooperatives and Condominiums 45th Annual Trade Show
and Seminars at the LaGuardia Marriott
Sunday, April 14, 2002 -Habitat Leadership Conference
at Marriott Marquis
January 1 to December 31 - Annual Boiler inspection
January 1 to December 31 - Annual elevator self-inspection
January 1 to December 31 - Annual lead paint inspections
January 15 to March 1 - Real estate tax assessment
reduction application period
January 16 - Last day to deliver:
- Annual window guard notices
- Annual lead paint notices
- Annual fire safety plan (if delivered with window guard
notice)
February 15 - last day for residents to return annual
window guard notices
March 1 - Buildings must notify the Department of Health
as to residents who did not respond to the window guard notice
and the last day for residents to return the annual lead paint
notices
April 30 - Last day to file property registration form with
HPD
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