Condo owners at Lido Beach Towers, the 184-unit beachfront building on the border of Lido Beach and Long Beach, filed a lawsuit against a Long Beach insurance broker and their building’s current and former management companies, and all parties are scheduled to appear in Nassau Supreme Court on Thursday.
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The six-story pink building sustained more than $16 million in damage due to Hurricane Sandy and residents expected Federal Emergency Management Agency flood insurance to cover the costs, but FEMA sent a check the condo owners a check for half that amount, citing failure to make a premium payment before the storm.
The condo owners’ attorney, Jonathan Wilkofsky of Manhattan, said the brokering agent, Denis Miller of Long Beach, missed a $20,000 premium payment that caused FEMA to reduce his clients’ insurance plan about six weeks before Sandy hit in October, but it was paid just days after the storm, according to Newsday. While the owners look to sue to cover the cost of the missed payment, they have also appealed to FEMA to reconsider its insurance payment due to that missed payment.
Alan Kramer, whose first-floor condo remains unlivable, told Newsday:
"The community is now saddled with an $8 million debt. The consequence of not having a loan is putting the brakes on our ability to move forward."Newsdays reports that FEMA is reviewing the condo owners’ appeal, and that neither Miller nor the management companies could be reached for comment.