August 6, 2018

My client is a co-op in Manhattan that had a water damage affecting numerous floors of the building. In the process of doing repair, the HOA's contractor had to perform content manipulation to make repair in the units. There was no damage to the personal property of the unit owners. The HOA is insured under the form CP 00 10 06-07 edition. The carrier asserts the cost for content manipulation is not covered because the property being manipulated is not insured by the policy. Several layers of supervisors maintain this opinion. For years we have successfully contended the cost is a direct cost of repair which is usually understood. In this case, to attempt to show potential coverage, I even pointed to the PP of Others in CCC language, even though I still believe it is a direct cost of repair and not excluded by the policy. Since the HOA's contractor was performing work they were hired by the HOA to perform, were they not an agent of the HOA and therefore the HOA would be responsible and in control. The carrier still maintains no coverage. Am I missing something in the form that supports their position? Your opinion is appreciated.

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