Landlords and others have suffered from heavy rains, high winds and flooding. And experts predict that severe storms will become more common due to global climate change. Although you can’t stop storms, you can reduce risks.
While Superstorm Sandy brought with it destructive winds and tidal surges, it also ushered in tides of change for New Jersey’s insurance market and regulatory scheme. Now that insurance company coverage decisions are starting to emerge, the New Jersey Unfair Claims Settlement Practices Act, codified as N.J.A.C. 11:2-17.1, et al., is in the spotlight. The Act is currently only enforceable by the New Jersey Department of Banking and Insurance and action is typically only taken if a pattern of abuse is evident.
It is no surprise that legislation mandating changes to homeowners insurance in New Jersey has begun to make its way through Trenton following Superstorm Sandy. Most recently, a bill was signed into law which adds information to be included in the required Homeowners Insurance Consumer Information Brochure which accompanies new and renewal policies. The new law will require the inclusion of a one-page summary of the policy including “notable” coverages and exclusions, as determined by the Commissioner of Banking and Insurance.
According to the New Jersey Department of Banking and Insurance, as of March 1, 2013, approximately 40% of flood-related Sandy claims are still unresolved. Many claims involve legal issues associated with the following circumstances, many of which we have seen in cases we are currently handling on behalf of insured policy – holders in the tri-state area:
The bad news is that costs increased when taxes rose in January. Interest rates may also rise. The good news is that for savvy landlords, there are some proactive strategies to improve the bottom line now with the help of sound legal counsel. Following are Stark & Stark’s top 10 tips for landlords to consider:
While the State of New Jersey is reporting some impressive statistics regarding the number of non-flood related Sandy claims which have been closed (87% overall), the statistics likely provide little comfort for the unfortunate 13% with open Sandy claims who are still battling with their insurance companies.
One of the often hidden dangers of flood damage to a structure is mold. Moisture gets into unseen portions of a structure and if not dried out quickly enough causes mold, which can effect health. The longer the moisture exists unabated, the more likely for a problem to occur, which is why fast action after flood or other water infiltration into a home or business is critical. Click here for additional information from our friends at LEW Corporation on the subject of mold after Sandy.
Superstorm Sandy struck New Jersey with a vengeance and brought with it unthinkable destruction. Many of Sandy’s victim’s lost everything and need to start over from scratch. Recovery will undoubtedly be a slow and difficult process requiring dedication and substantial resources. While dedication is no problem for resilient New Jersey residents, resources are scarce in the storm’s aftermath and a great deal of assistance is urgently needed.
The storm has passed and the recovery efforts have begun, but the devastation inflicted by Sandy will undoubtedly be felt for years to come. Truth be told, for many, if not most residents of New Jersey and its neighboring states, the effects of Sandy will be permanent.
In a recent published opinion, State v. Perini Corporation, et al., the New Jersey Appellate Division addressed the ten-year Statute of Repose, N.J.S.A. 2A:14-1.1, which bars claims for damages for any “…deficiency in the design, planning, surveying, supervision or construction of an improvement to real property … arising out of the defective and unsafe condition of an improvement to real property … more than 10 years after the furnishing of such services and construction.” The Statue of Repose has essentially acted as a roadblock to recovery for Plaintiffs seeking damages for faulty work that did not become evident until years after the construction took place.
