Two buildings were leveled in a massive explosion Wednesday
morning in New York’s East Harlem, igniting a five-alarm blaze. Nearly 20
people are reported injured.
The blast, believed to be caused by a gas leak according to
news reports, happened around 9 a.m. on Park Avenue on 116th Street and claimed
one structure that housed a piano repair shop with apartments above it, and a
second building that housed a Spanish Christian church.
Thus far two deaths and at least 18 injuries have been
reported by the FDNY, including four serious cases.
Hundreds of firefighters descended upon the area to fight
the fire among the rubble and debris.
According to CBS New York, witnesses reported hearing a loud
explosion—and Carmen Vargas-Rosa, who owns the church, said she smelled was a
gaseous odor in the area on Tuesday night.
It remains unclear whether anyone was inside the buildings
at the time of the blast. Several tenants were still unaccounted for.
According to CNN, New York utilities company Con Edison had
been called to the area on Park Avenue between 114th and 116th streets to check
a possible gas leak just before the explosion.
The Insurance Information Institute says standard
property-insurance policies purchased by building owners, businesses and
renters typically cover damage due to explosion, fire, smoke and building
collapse. "Coverage could include damage to the buildings themselves,
damage to the inventory of any businesses in the buildings, and to the personal
possessions of renters as well as the cost of additional living expenses for
those who are unable to live in their apartments due to the destruction,"
I.I.I. says in a statement.
Loretta Worters, I.I.I. vice president, expands upon the
possible insurance scenarios, stating, "If they are renters, they will be
covered by their renters insurance for personal property, if they have bought
the coverage. If they own their condo or co-op, they will be covered for
personal property as well as damage to the interior space of their home."
She says the condo association’s insurance might cover
fixtures, wiring or plumbing "or it may only provide coverage from the
bare walls and not what is behind them, so they’ll need to get a hold of the
master policy at some point to understand what’s covered."
Regarding additional living expenses, covered by most
renters and condo/co-op policies, Worters says insureds generally receive 20%
of the insurance they have on their home. "Some insurers pay more than
20%; others limit additional living expenses to an amount spent during a
specific time period," says Worters. "We advise people to keep all
their receipts to document what they’ve spent."
For a business such as the piano shop that was located in
one of the two buildings, Worters says business interruption would cover lost
income, continuing operating expenses, and may include extra-expenses insurance
to cover additional costs associated with remaining open during restoration or
rebuilding.
However, Worters notes, "A lot of small businesses
don't buy [business interruption]."
Other coverages triggered could include optional
comprehensive coverage for automobiles damaged by the explosion, and workers'
compensation for workers (Con Ed employees, Firemen, etc.) who are burned or
injured by falling debris at the scene, Worters says.
