Title 9 Part 1630

An authority may occasionally find it necessary to obtain immediate insurance coverage. In such cases, wherever possible, coverage should be placed under binder, with a company that has previously been successful in receiving some other item of insurance under bidding procedure. Company issuing binder should be requested to allow coverage to remain in such form without issuing a policy until division can be consulted and approval obtained for permanent coverage.

“It is agreed that the State of New York, Executive Department, Division of Housing and Community Renewal” assumes no liability, and shall not in any event be liable, for the payment of any of the premium as may be stated in the policy or as may be added thereto by endorsement, or earned under the policy or any endorsement.”

“It is understood that such insurance as is afforded by this policy applies to each named assured against whom claim is made by an employee of any other named assured.”

“It is understood and agreed that any dividend payable to the insured under this policy shall be payable only to (name of authority).”

“It is understood and agreed that this policy shall not be reduced or cancelled without ten (10) days written notice in advance of the effective date of such reduction or cancellation to the State of New York, Executive Department, Division of Housing and Community Renewal, 2 World Trade Center, New York, New York 10047.

“It is understood and agreed that this policy shall not be reduced or cancelled without ten (10) days written notice in advance of the effective date of such reduction or cancellation to the (name and address of authority).”

Duplicate copies of all insurance policies, including all endorsements, shall be forwarded to division for checking before payment of premiums by authority. After review of each duplicate policy, division will issue approval slip which shall be affixed to original insurance policy by authority.

All insurance documents, including policies and correspondence in connection therewith, shall be kept in a safe place, in an orderly manner, and readily accessible. A separate file shall be maintained of the disposition of claims and losses for possible rate reductions. Instructions for establishment and maintenance of insurance accounts are contained in division's accounting manual [see Subchapter D of this Chapter].

As soon as loan contract is executed, authority will immediately require some or all of coverages listed below.

Office and messenger robbery insurance and safe burglary insurance shall be carried in such amount as shall seem adequate to authority and to division. Usually, office robbery and safe burglary coverage is carried combined in one policy known as “American Bankers Standard Robbery Form”. This form has been approved for use of public housing projects by rating organization. The messenger robbery coverage will be issued on the standard form of messenger robbery policy. Above coverages must be obtained before any cash or securities in possession of authority are exposed to loss.

All architects employed by authorities under contracts for architectural services shall carry the following forms of insurance:

All other contractors during preconstruction period (demolitions, maps and surveys, and miscellaneous contractors) shall carry the following forms of insurance as specified in their contracts:

During construction period, authority will continue to carry forms of insurance referred to under Subpart 1630-2, the Preconstruction Period, to extent that they apply.

All forms of public liability insurance required during preconstruction period, as outlined under subdivision (b) of section 1630-2.1, will be continued during construction period. Where coverage has not been previously obtained, authority shall obtain elevator liability insurance in limits of at least $100/300,000 for bodily injury.

All forms of fire and extended coverage insurance outlined under subdivision (f) of section 1630-2.1 shall be continued during construction period, covering both property on project site as well as materials stored off project site.

Before construction commences, fidelity bond referred to in subdivision (d) of section 1630-2.1 should be endorsed to the increased amounts of coverage on various positions to comply with table of positions and amounts called for during construction period.

Other forms of liability insurance as called for in Subpart 1630-2 will be continued during construction period.

Such bid and performance bonds as may be required of any contractor shall be posted in accordance with his contract requirements.

During construction period, contractors will continue to carry forms of insurance referred to under section 1630-2.2 to extent they apply. Special attention should be given to the following coverages.

Those materials for project that are stored on project site shall be covered for fire and extended coverage perils under builder's risk policy referred to above. In certain cases, however, authority should see that fire and extended coverage, and mercantile burglary and theft insurance are obtained for such offsite materials. In event that these materials have been paid for by authority directly, authority should effect such insurance. If included in contractor's payments, coverage should be obtained from contractor.

Blanket insurance on a 90 per cent basis shall be carried to cover replacement of buildings. Rental value insurance shall also be carried, preferably on a blanket 100 per cent basis. Deductibles shall be used wherever practical to do so.

As a result of negotiation by Commissioner of Housing with New York Fire Insurance Rating Organization, local public housing projects receive special rate treatment. In order to obtain promulgation of special reduced rate, it will be necessary to prepare “Affidavit to Secure an Average Blanket Rate” and submit same to New York Fire Insurance Rating Organization. The division will assist authority in preparation of this affidavit and subsequent detail involved in filing with rating organization and in obtaining promulgation of special rate. The division has special forms which will be supplied to authority for attachment to their policies by insurance carriers awarded coverage.

Note:

In projects of so-called “superior fire-resistive construction,” application shall be made to New York Fire Insurance Rating Organization for permission to use “Amount of Insurance” clause and elimination of “coinsurance” clause from fire insurance policies. Wherever this privilege may be obtained, division will assist authority in filing with rating organization.

Policies shall cover fire and extended coverage insurance for a three year period. They shall be written in name of authority and Executive Department, Division of Housing and Community Renewal, State of New York.

Authority's compensation must be amended to include coverage for care and maintenance of project, before any portion of project is taken over from contractors. In addition to care and maintenance of project, policy should be extended to cover “other operations, if any” at a charge to be determined on audit.

Authority will continue to carry forms of insurance called for under section 1630-2.1 on mobile equipment insurance.

At commencement of operations, authority shall transfer robbery and safe burglary insurance referred to under subdivision (e) of section 1630-2.1 to new location and will endorse this policy to cover in amounts deemed necessary during operating period. Messenger robbery policy should cover a sufficient number of messengers to comply with authority' s requirements for outside rent collectors and/or bank deposit messengers.

At commencement of operations, insurance coverages effected during preconstruction and construction period shall be reviewed. Such items as fire and public liability insurance covering project office, prior to removal of office to project site, shall be cancelled at the time of removal. Other insurance coverages shall be reviewed to determine whether necessary.

“In the event of any accident involving personal injury or property damage or both to anyone on the premises as a result of the use, operation and delivery of the article about which the contract is drawn, that a ‘hold harmless’ agreement be given by the vendor or concessionaire to the authority and the Division of Housing indemnifying them against any and all claims as a result thereof including products.”