Insurance rates spike for hard-hit landlords

From the January issue: More than two months after Hurricane Sandy smashed into New York City, some Lower Manhattan landlords are being forced to reach into their own pockets — in some cases deeply — to pay for repairs to their buildings. That’s because while insurance companies are footing the bill for hundreds of millions of dollars in damages to elevators, electrical systems and other infrastructure in hard-hit buildings, the carriers are not covering all the damage. One insider estimated that about a quarter of the large commercial building landlords who were hardest hit by the storm have already maxed out their flood insurance payouts, and have to pony up the difference themselves. In some cases that can cost well over $1 million. [more]