Property owners should inspect insurance policies, panel says.

According to the speakers at the New York Association of Realty Managers' insurance seminar, the most important thing that property owners can do to help themselves in the current insurance crisis is become closely acquainted with their policies. Insurance experts advise landlords to review every clause in their contract and make sure that their properties are protected against accidents not covered by their insurance.

"The most encouraging thing for me is that people are finally interested in their insurance and one of the areas they should get involved in is the claims policy," said Michael Zeldes, senior vice president of Kaye Insurance Associates. "Find out what you are covered for. Review your past claim reports because insurance companies are now reluctant to take risks. So if you know your property's history, you can put your spin on previous accidents. And remember to always report any claims. By not reporting a potential accident, you can compromise your coverage. You want to let the insurance company know about a potential problem right away because you will not get the same leniency as a few years ago."

The insurance seminar was held as part of NYARM's Real Estate Expo held last week at the Jacob Javits Center.

Zeldes also talked about policy renewal and some of the changes insurance companies have implemented since last year. For example, blanket insurance (a policy that covers all of the landlord's properties as a whole) is no longer encouraged and insurance costs per square foot are going up.

"There is not much you can do about these things, but just have knowledge," he noted. "You want to be more pro-active than ever and understand the insurance policy you have. And that can help you with your overall risk management -- bringing your properties into good shape."

Steve Cangelosi, vice president of Greater New York Insurance Co., also encouraged early reporting and insurance education.

"In many cases, if you report a case right away, we will be able to control it and keep it from litigation," he said. "Sometimes, tenants just feel ignored and if the insurance company offers to pay their bills they will refrain from going to an attorney. And if we feel that they don't have a legitimate case, we will file it away at no cost to the landlord."

In addition, Cangelosi encouraged property owners to take every precaution against possible lawsuits.

"When you use contractors to work on your property, insurance becomes a complicated issue," he noted. "You can be held absolutely liable for any injuries that occurred at your property and you won't have any defenses available. So make sure to get a contract that holds you harmless. It says something about you as property owners and how meticulous you are when it comes to insurance.

Finally, Zachary Berhau, of I.E.C. Consultants Ltd., discussed strategies for getting a better insurance policy. Berhau advised landlords to research their potential insurance providers and review the policy personally to get an idea of what the insurance will cover.

"You want to make sure that the insurance company is stable, so check their rating and make sure that the company is licensed by the State of New York," he said. "If they are licensed by the state and they go bankrupt, you will be able to ask the government agency to act on your behalf. And if you are thinking of renewal, start going over the policy early, at least 90 days early, to get a good sense of what you get. Prepare a list of insurance brokers you are considering, find out how much the insurance will cost, and pay attention to the fringe benefits -- some of them may make more sense for you than others."

If insurance costs still hold you in despair, however, take some solace in the fact that the increase was all but inevitable.

According to Zeldes, "We went through a 15-year period without rate increases. So even prior to Sept. 11, rates were escalating 15-20%. We were going to see an increase one way or another."