N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1730-2.1

Current through Register Vol. 46, No. 36, September 4, 2024

Section 1730-2.1 - Insurance requirements

(a) Automobile insurance.

(1) Any vehicle owned by housing company shall be covered by automobile liability insurance with a combined single limit (each accident) of at least $1,000,000.

(2) For automobiles owned by employees and officers of housing company and used by them on housing company business, an automobile non-ownership liability policy shall be obtained, with combined single limit (each accident) of at least $1,000,000.

(b) Property coverage. The housing company shall obtain a fire and extended coverage policy in an amount equal to at least 90 percent of the insurable value of the project, and a policy to cover anticipated rental income on a 100 percent coinsurance basis.

(c) Liability. Before taking over any portion of the project, the housing company shall obtain a liability policy, preferably the comprehensive general form, with limits of at least $1,000,000 per occurrence/$2,000,000 total aggregate for bodily injury or death. The policy shall include coverage for ownership, maintenance or use of premises, as well as all elevators located in project. The "caused by accident" phrase should be eliminated from the ensuring agreement and the word "occurrence" substituted.

(d) Fidelity bond. Housing companies shall obtain a blanket fidelity bond with limits approved by the division. The housing company shall obtain a fidelity bond to cover every position in which an employee or agent has possession, custody or control of funds or property. The blanket position form of bond is preferable.

(e) Boiler.

(1) For projects where steam boilers are installed, the housing company shall carry boiler insurance. Projects using hot water boilers may obtain boiler insurance. Furnace explosion coverage need not be provided since it is available under the extended coverage endorsement attached to the fire policy.

(2) The amount of insurance to be carried, which shall be determined by the housing company and approved by the division, shall be sufficient to cover maximum probable damage to property of project and property of others that may be exposed to any accident occurring through operation of boiler equipment.

(f) Money and securities. The housing company shall obtain coverage for loss of money and securities, both inside and outside the premises, in an amount sufficient to cover the full value of cash securities likely to be located on the premises at any one time.

(g) Self-insurance. A housing company may, with the prior consent of the division, act as a self-insurer. No company shall transfer from or to a self-insurance program without the prior consent of the division.

(h) Insurance reserves. Reserves shall be maintained for all insurance premiums on policies written for more than a one-year term.

(i) Insurance to be supplied by contractor, concessionaire, etc.

(1) In the event that repair, alteration, exterminating, or any other work or services shall be performed for the housing company, the company shall require all firms performing such operations to supply evidence that workmen's compensation and public liability insurance, with limits of at least $1,000,000 per occurrence/$2,000,000 total aggregate for bodily injury, are in force.

(2) The housing company shall require that certificates or copies of such policies be submitted as evidence that such insurance is in force. No contractor shall be allowed to commence operations until the housing company has satisfied itself that there has been compliance with this provision.

(3) Before any contractors commence construction operations and before materials are delivered to project site, a builder's risk policy must be secured. This policy shall either be obtained by housing company or supplied by contractor. Coverage for full insurable interest must be maintained at all times and shall include materials on project site. Either "completed value" or "monthly reporting" form may be used; the "completed value" form however, is preferable because it obviates the necessity for filing monthly reports covering value of completed work.

(4) Material stored on project site will be covered under builder's risk policy. If these materials have been paid for by the housing company, the company shall effect such insurance; otherwise the coverage shall be obtained from the contractor.

N.Y. Comp. Codes R. & Regs. Tit. 9 §§ 1730-2.1