It is routine in New York City with high rises that they experience water damage from a leaky toilet or a gusher from a neighbor doing renovations. The resulting damage from above can stretch from minor aggravation to having to move out of your property while the repairs are completed.
It is of little surprise that the infrastructure of some of these buildings is being compromised by time, and water leaks are a rising threat. It is important for the owners to know that the insurance companies are catching on and revising their contracts.
Before your upstairs neighbor starts a renovation to the kitchen or bathroom, leaving you exposed to the contractor hired, and the potential for water damage.
Here is what you need to know!
Being displaced from your unit due to water damage from your neighbor above is complicated, inconvenient and can be very costly.
Insurance coverage for your property is issued in two distinctly different forms.
Actual Loss of Use- This type of insurance, with an insurer like Chubb Insurance ,will pay for you to relocate temporarily based upon what is available, similar to your unit and close by. There is no limit on the rent they will reimburse during your time of being relocated.
Limited Loss of Use- When a unit is initially purchased, property insurance is intended to cover the contents, and additionally the unit owner’s portion of the building. Let’s say a limit of $250,000 was chosen to cover the property. Limited Loss of Use, included with the property coverage would provide 20% of that limit or $50,000. That amount is a total amount and is additionally limited by month.
If you are unfortunately displaced, being insured under a Limited Loss of Use insurance contract can add significant financial cost to an already stressful and aggravating situation.
The frequency of water damage claims in New York City is accelerating as buildings age, making sure you have the right coverage is critical to avoid unexpected financial consequences.
If you need help sorting out new or existing coverage for your NYC property–contact Kyle at Shepard Insurance Group. He is an expert on water damage exposure.
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