Improvements Made After Fire Not Covered by Insurance

Tenant was temporarily displaced from her rent-stabilized apartment because of a fire. Landlord told tenant she could move back in after the apartment was renovated. Landlord had fire insurance, but there was a $10,000 deductible. Tenant asked the DHCR if landlord could add the cost of 1/40th improvements to her rent before she moved back in. In an opinion letter, the DHCR said yes. If landlord installs new equipment or services in the apartment after a fire, he is entitled to collect a 1/40th rent increase unless the cost is covered by fire insurance. Because landlord's costs here were less than $10,000, he wouldn't receive fire insurance. So landlord could charge tenant the 1/40th rent increase.

DHCR Opin. Ltr. by Charles Goldstein (4/4/03) [3-pg. doc.]