NEW YORK CITY

Insurance claims rarely — if ever — end up in litigation, say experts, and never for damages. In the event of a disputed claim, every insurance policy affords either party an appraisal for matters of value, which is binding arbitration. A public adjuster also ensures litigation is rarely taken. 

"You go and ask a contractor for an estimate to repair your building and the contractor says he wants $750,000 and the insurance company says, no, it is only worth $500,000," says Bob D'Amore, president of the New York Public Adjusters Association, an approximately 100-year-old organization that brings together 164 of the roughly 400 licensed public adjusters in the state. "Somewhere in there is the truth. How do you come to that truth and maximize the recovery? That is what a good public adjuster can do."

Steve Gutenplan, president of Affiliated Adjustment Group (AAG), says relationships with insurance companies blow hot and cold but the majority of claims are settled professionally, without conflict. "[Insurance companies] are not my best friends and they don't give me a blank check, but we know how to co-exist," he says. "Either we have fought in the past and want to find an amicable resolution to a claim, or I'm going to make them not want to fight with me again. Usually we are pretty successful."

When something major goes wrong at a co-op or condo building — and we're talking pretty huge, such as a construction crane falling against a condo or a storm ripping the roof off a co-op — there's going to be more than one insurance company involved. For that reason, co-ops and condos may want to consider using a public adjuster — an independent insurance specialist hired by an insured party to secure a claim that better reflects the work required to repair damages.

Last week, we took a look at how renting out a foreclosed apartment can give a condo association leverage with a bank. It's an unusual approach, but it can be tricky to get a bank to see how everyone can stand to benefit from a negative situation. As Peter Lehr, director of management at Kaled Management pointed out, it's all about alliances: "It could be successful… You've got to say to them, 'We can get this done faster, so let's partner on this. No one gets hurt in this partnership. You get a little bit, I get a little bit — we're all happy.'" But some banks are harder to convince than others.

Your co-op or condo is probably properly insured. But that may not be enough to cover the cost of repair, especially if the incident is major: a construction crane falls against a condominium building and damages the façade and several apartments; a fire creates havoc on several floors with smoke and water damage; a storm rips a roof off a co-op building and exposes shareholder units to wind and weather-related damage. "The insurance company gives a determination of what happened, what was damaged, whether it is covered, and what the cost would be to repair the damage," explains Ed Mackoul, president of Mackoul & Associates, an insurance brokerage. But, he adds: "The insured are not always happy with the result they get."

On October 27, a new law goes into effect that will alter the hiring practices of every co-op and condo board in the city. It's a minefield. Be careful where you step.

Last summer, Mayor Bill de Blasio signed a new law called Introduction 318-A, commonly known as the Fair Chance Act, which has the noble purpose of prohibiting discrimination against job seekers based on their prior arrests or criminal convictions. At the signing, the mayor said, "This bill opens the door to jobs for New Yorkers who have already paid their debt to society, rather than condemning them to a grim economic future."

Extra meetings are helpful because they make board operations more transparent and keep residents in the loop, which should cut down on rumors and other misinformation. For instance, a 35-unit Bronx co-op staged a second shareholders' meeting because the board needed to raise money. 

Is your co-op board flexible enough to adapt when a self-employed person — with fluctuating annual income — applies for a sublet?

Many co-op boards have strict procedures for vetting prospective subletters. Conventional requirements include a W-2 income tax form (for one or more years), credit and criminal background checks, a letter from the previous landlord, bank statements, and personal and professional letters of recommendations. As a final hurdle, sublet applicants who are deemed worthy usually have to appear in person for an interview before the board's sublet committee or the entire board.

Transparency goes a long way to keeping shareholders in a co-op happy, but that doesn't mean boards should share every single detail about every single thing. The formula for how much boards share varies from building to building, naturally, and sometimes it causes friction among shareholders who may feel like they are being kept in the dark. That's the case with one shareholder who writes to Ronda Kaysen in this week's Ask Real Estate column in The New York Times: "Does the co-op board have any responsibility to communicate with shareholders? We have a meeting once a year, and the minutes are never distributed to shareholders afterward. Our maintenance went up this year and the board kept the real estate rebate. Do we have a right to know what these funds will be used for?" Kaysen explains that by law, boards "must provide shareholders with copies of the minutes of the annual meeting (but not the monthly meetings); an annual financial statement; and, upon request, a list of the shareholders and their mailing addresses. Some proprietary leases contain a provision that entitles shareholders to review the corporation’s operating records and managing statements." In this case, Kaysen observes, the board seems to be doing less than the bare minimum required. "If the board refuses to distribute the financial statement or the minutes from the annual meeting," she says, "shareholders could sue the board in state court to compel it to do so." And of course, if you don't like how a current board is handling things, you can run for the board or nominate someone you feel will have the building's best interests at heart. 

Imagine a three-bedroom apartment that's been newly renovated from two-bedrooms, taking up the same space but with gleaming new floors, a state-of-the-art kitchen, improved lighting, and enough new electrical outlets to satisfy the most high-tech home. Yet the apartment-owner pays lower maintenance or common charges than the owner of an older, non-renovated three-bedroom in the same building.

Can that possibly be right or fair? And what if a disgruntled neighbor claims those renovations happened without board approval, either because the board didn't know or turned the other way? What happens then?

Condos are a bit like rabbits, aren't they? You start with a couple and before you know it, they start popping up everywhere. That's been the case in Rego Park — once a distinctly middle-class Queens neighborhood with its apartment buildings, multi-family and railroad houses, and commerce. Starting in 2000, but especially since 2010, prices in Rego Park have been climbing with the influx of young professionals. And gentrification in this once affordable neighborhood has been building significant momentum. Take this new 7-story condominium rising only one block away from the 63rd Drive-Rego Park subway station. It's only the latest project to pop up in the neighborhood, says DNAinfo, adding that "the 23,398-square-foot building, at 97-30 64th Avenue, will include 23 condo units." On that same block, just a month ago, another condo — Great Stone Tower — was completed. "Prices in that building, according to real estate listings, can surpass $700,000 for a two-bedroom apartment," reports DNAinfo. Over in the following block, "another developer, Kenny Liu, is also planning to build a new 7-story 50-unit condominium building at 97-45 63rd Drive." And of course, there's the upscale condo, featuring Manhattan-style amenities such that include a gym, rooftop garden, and bicycle room, being built at 65-38 Austin Street.