BASEMENT RENOVATION UPDATE
On May 13, 2019 the LCCC experienced a significant basement flood. We understand that this sewer back-up affected many buildings in our neighborhood. Our insurers (Aviva) were notified as the damage was very significant. We have been successful in obtaining compensation for contents damage, property damage and loss of rental income.
The negotiations with our insurance provider have been difficult and have taken a very long time. The first offer for property damage was made on July 4, 2019, two months after the flood. It was for $180,000. We identified many items that the insurance company had not included in the offer. We made numerous requests to have all property damage included in the claim but our insurance company did not respond favorably. Without any further negotiation, our insurance company sent their “final offer” for property damage on December 3, 2019 for $197,700.78. We were forced to start repair work even though the “final offer” did not cover all of the items that needed repair.
Construction started on February 7, 2020. Once construction started, the contractor found that the floor tiles in Fraternitas Lataviensis room, the scout room, the Daugavas Vanagi room and the LCCC storage room had lifted. These new items were added to our list of items that we were requesting to be covered by insurance. The value of the additional work we had identified had grown to $47,457.29. On March 9, 2020 we requested that the insurance company make a site visit to see the lifted tiles and other items we were claiming. The insurance company refused to visit the LCCC and repeatedly denied coverage.
We re-stated our claim 5 times. Finally, on June 4, 2020, the insurer relented and came to the LCCC to inspect the floor tiles and other items we were requesting to be covered. On July 9, 2020, The insurer agreed to pay $26,768.70 for the additional items. In order to reduce the cost of repairs, we eliminated some items and reduced scope on other items. The result is that the additional work will cost now $34,004.82. The resulting shortfall is expected to be $9,121.12.
We also received $31,088.40 for loss of rental income. The tenants who have remained in the LCCC received their portion of the rent refund. All tenants who received rent refunds have graciously donated the funds back to the LCCC. Thank you!
The discussion above focused on the property damage part of our claim. The total cost of all flood flood damage is as follows:
- Emergency Clean up $14,655.95
- Emergency Clean up $65,832.35
- Contents Damage $15,000.00
- Loss of Rental income $31,088.40
- Property Damage $238,716.22
- Total Cost of Damage $365,292.92
Delays were significant in this project. May to December 2019 was spent negotiating with the insurance company. March to July 2020 was again spent negotiating with the insurance company. This time period overlapped with Covid-19 Emergency shut-down requirements. We expect the repair work to be finished by October 2020. In the end, 12 months of the 18 months it will take to repair the basement will have been spent in negotiations with the insurance company and the Covid-19 emergency shut-down.
The Board of Directors and staff at the LCCC have been as frustrated just as all of our tenants, members and visitors have been. We appreciate your patience.
The Board of Directors.