Page 1 - CooperatorNews New York 2022
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August 2022 
                                            COOPERATORNEWS.COM 
determining who pays for an insurance claim “is a huge question. The  
determination of who pays for what is based on two different factors:  
the state in which you are located, and the governing documents that  
are in place. That’s what dictates who pays for what.” He goes on to ex- 
plain that there are three different ways to insure in multifamily build- 
ings: One is ‘bare walls,’ meaning the association will cover everything  
up to unfinished interior surfaces. The second is called ‘single entity’  
(also known as ‘original specifications’). That means the association  
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Insurance coverage and the inevitable claims that coverage defends against are a fact of life  
for multifamily residential communities. In that setting, it’s critical for all parties to understand  
whose policy covers what, and under what circumstances. A good starting point is to view li- 
ability and claims from the perspective of that unique factor for condo and co-op living: shared  
common areas versus areas for the exclusive use of individual shareholders or owners and their  
families. 
Yours, Mine, Ours 
Alex Seaman is a senior vice president of HUB International, a national insurance broker- 
age headquartered in Chicago with offices throughout the United States. Seaman is located  
in Woodbury, New York. “An association policy is intended to provide coverage for common  
areas, including [physical] structures and common elements,” he says. “These elements are de- 
fined by the bylaws and/or proprietary lease. Common elements can differ from one property  
to another.”  
According to Ryan Fleming, a director with JGS Insurance, a national brokerage with of- 
fices throughout the United States, including Holmdel, New Jersey, where Fleming is based,  
The 347,000 planned communities in the  
United States—a number that includes co- 
operatives, condominiums, and homeown- 
ers associations—are generally governed by  
volunteer members of the building or com- 
munity elected by their fellow unit owners  
or shareholders. There are no requirements  
or prerequisites for serving on a board, other  
than what might be specified in the govern- 
ing documents of a particular community— 
usually status as a member in good standing  
and a minimum age, for example.  
While having a professional history or  
other relevant experience in a field like ar- 
chitecture, accounting, law, interior design,  
engineering,  or  urban  planning  might  be  
useful on a board, these skill sets do not  
necessarily “qualify” someone to be a direc- 
tor. All it takes is a willingness to essentially  
run a multimillion-dollar nonprofit for zero  
pay, little recognition, and fair-to-high like- 
lihood of being confronted by at least one  
irate neighbor at some point (and probably  
more than once) in one’s tenure.  
So what separates a good board from the  
stereotypically despotic and dysfunctional  
ones, or even a mediocre one? We spoke to  
professionals in several fields who regularly  
work  with  multifamily boards to  get  their  
perspectives  and  offer  some  insight  into  
what makes the best boards best.  
Respectful Interaction  
While there are no prerequisite degrees  
At the heart of co-op and condo living  
is the association or corporation board, that  
unique self-governing body that directs the  
community and carries out its mission to  
uphold quality of life and preserve the in- 
vestment of its members. Board service is  
almost universally voluntary, and does not  
require any specific experience. It’s a learn- 
on-the-job situation.  
Given that, and given that board mem- 
bers have a fiduciary duty to their commu- 
nity, what kind of orientation or onboard- 
ing should boards offer to new members  
to help them understand the scope of their  
responsibilities and make sure they’re well  
equipped to fulfill them?  
Welcome! 
Andy Marks is a senior vice president  
with Maxwell-Kates Inc. and Associa Com- 
pany, management firms based in New York  
City, and was also the president of his Man- 
hattan co-op for many years. According to  
him, “When we have a new board member  
who is unfamiliar with what’s required of  
them, we first provide them with a basic  
overview of the following: We start with the  
difference in structure and status between  
a co-op (where owners are shareholders  
of  the  corporation)  and  a  condominium  
(in which unit owners own real property,  
each with a proportionate share of the com- 
mon interest). Although that is something  
they may already be familiar with, it helps  
ground them.  
“Then we move on to basic roles and re- 
sponsibilities of the board and each board  
member,” he continues. “Next, we intro- 
duce the specific issues currently being  
addressed, along with the short-term and  
long-term objectives of the board they are  
joining. This update will come from the  
board president and/or the property man- 
ager. Finally, we introduce the expectations  
Insurance in the   
Multifamily Setting 
Knowing Who Covers What is Key 
BY A. J. SIDRANSKY 
Who’s a Good  
Board? 
Pros Weigh in on Co-op, 
Condo, HOA Leadership  
BY DARCEY GERSTEIN 
Onboarding New  
Board Members 
Getting Newcomers   
Up to Speed 
A. J. SIDRANSKY 
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