Approximately 250 residents in Queens, displaced by a devastating fire in 2023, are still without a permanent place to live, with insurance companies reportedly dragging their feet on claims, according to frustrated tenants and local officials.
“It was an absolute bureaucratic nightmare,” expressed Lauren Koenig, one of many tenants affected by the five-alarm fire at 43-09 47th Ave. in Sunnyside almost two years ago.
“Every step of the way has felt like a fire,” added Koenig, who is 43 years old.
Many of the long-standing tenants come from rent-stabilized apartments and are now paying much higher rents in different locations, as a result of ongoing issues with their claims and those of the building owners.
Since the incident, tenants are reportedly spending about $100,000 monthly on temporary accommodations and basic necessities, as noted by a local lawmaker.
“They’ve been enduring this ordeal for nearly two years. It’s time they receive some resolution,” U.S. Senator Michael Jainaris, Deputy Prime Minister Claire Valdes, and City Councilman Julie expressed in a letter addressed to Evan Greenberg, Chairman and CEO of Chubb Insurance Company.
“We recognize that managing fire insurance can be quite complex, but we are troubled by the prolonged time required to settle this claim and bring closure to this situation,” they mentioned.
However, in response, Chubb implied that perhaps the tenants and lawmakers might be misunderstanding the situation.
“Chubb sympathizes with the residents’ concerns,” stated a company representative, adding that they are working on behalf of the building’s owner and manager, EAE Atlantic, along with affiliated companies.
Chubb clarified that the matter involves two kinds of insurance: liability and property insurance.
The vice president indicated that Greater New York is responsible for covering the primary liability of the building, while Chubb’s role is as a secondary policy provider for additional claims.
As it turns out, the property insurance claim has been underwritten by a different insurer, Seneca.
Tenants have since initiated a lawsuit against the building’s owner and Prishtina Construction, who had removed lead paint from vacant apartments, which is believed to have contributed to the fire.
“Once GNY fulfills its obligations, Chubb will respond by providing EAE with additional liability coverage and defending EAE against claims from the residents affected,” mentioned a letter from a Chubb representative.
“Chubb prides itself on its reputation for prompt claims payment and fair treatment of claimants.”
However, attorney Brett Gallaway, representing the tenants, contended that Chubb bears responsibility for the situation.
He emphasized that Chubb’s liability coverage was activated in April when the major policy transitioned to GNY.
“Chubb has not engaged in meaningful discussions to expedite the tenants’ return to their homes and lives,” Gallaway stated in a letter to the representative from Chubb.
Meanwhile, a spokesman from A&E, the building’s managing company, indicated that Seneca has hindered progress since assuming control of the reconstruction efforts.
“It’s truly a loss for us to have so many units vacant, and it’s tough for the families that consider this place home,” the spokesperson added.
Seneca has not yet responded to a request for comment.
