Protections for tenants in the TAMA 38 project - what (among other things) is important to demand from the developer
Jul 23, 2017
Article by Itzick Simon
TAMA-38 projects, and to a large extent mainly TAMA 38 (1-3), require significant potential protection for tenants in the event of damage - as part of the necessary requirements from the developer before signing the TAMA agreement, but often the issue of insurance is marginalized in these agreements and is not addressed thoroughly, and unjustly.
Let's take, for example, the scenario of the contractor abandoning the site. The contractor's policy defines exceptions that in the event of a work stoppage on site for more than 90 days, the insurance coverage will expire. In such a situation - it is clear that on the one hand, the tenants are left with a construction site that is inherently an unsafe environment for residents and visitors - and on the other hand, they are also left without insurance coverage, often without their knowledge. In a scenario where the tenants were evicted from the apartments before construction began - clearly in the case of the abandonment of the site by the contracting company - the difficulty is even more significant - since they have nowhere to return, the question is whether the collateral is sufficient in such a case.
Article by Itzick Simon
TAMA-38 projects, and to a large extent mainly TAMA 38 (1-3), require significant potential protection for tenants in the event of damage - as part of the necessary requirements from the developer before signing the TAMA agreement, but often the issue of insurance is marginalized in these agreements and is not addressed thoroughly, and unjustly.
Let's take, for example, the scenario of the contractor abandoning the site.
The contractor's policy defines exceptions that in the event of a work stoppage on site for more than 90 days, the insurance coverage will expire.
In such a situation - it is clear that on the one hand, the tenants are left with a construction site that is inherently an unsafe environment for residents and visitors - and on the other hand, they are also left without insurance coverage, often without their knowledge.
In a scenario where the tenants were evicted from the apartments before construction began - clearly in the case of the abandonment of the site by the contracting company - the difficulty is even more significant - since they have nowhere to return, the question is whether the collateral is sufficient in such a case.
Replacement cover
Alternative Coverage It should be noted that alternative housing coverage in the contractor's policy may only be a solution in the event of physical damage to existing apartments, but this coverage is also not available in most policies for TAMA-38 projects , either due to a lack of demand on the part of the tenants or due to a lack of awareness and/or a desire to save on the part of the contractor company.
In summary: I have briefly raised two routine problems in TAMA 38 projects that reflect the importance of the issue of insurance as part of the necessary requirements from the developer before signing the TAMA-38 agreement, an issue that unfortunately does not often receive proper attention.
Contacting a professional who is knowledgeable in insuring such projects may lead to adequate insurance solutions for at least some of the problems I mentioned.
Regards
Itzick Simon
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