Mar 23, 2016

PIANY hails passage of legislation to protect coastal homeowners

GLENMONT, N.Y.--The Professional Insurance Agents of New York State is praising the New York State Assembly's passage of a bill (A.7537-A, sponsored by Assemblyman Todd D. Kaminsky, D-20) Monday. PIANY sought sponsors and pushed for the bill, which would standardize the windstorm triggers for homeowners' hurricane deductibles.

"Assemblyman Kaminsky has been instrumental in sponsoring this important legislation for the last few years and we thank him for taking up the call this legislative session," said PIANY President Gene Sandy, CIC. "While this hurricane season has been relatively quiet, New Yorkers shouldn't have to worry about whether their insurance company will cover a severe-weather event."

PIANY has worked with legislators and the New York State Department of Financial Services to explain that without this law, the majority of coastal policyholders are unaware that different insurance companies have different triggers for deductibles in the case of windstorms, and many do not know what the triggers are that set coverage into effect. As such, many homeowners don't know what out-of-pocket costs they would incur in the case of a storm, or how their policies stand up to their neighbors.

While NYDFS regulations require homeowners and dwelling, fire and personal-lines policies that include a hurricane deductible to display the applicable percentage amount and corresponding dollar amount of the hurricane deductible in the policy declarations, the overwhelming majority of coastal policyholders are unaware that different insurance companies have different triggers for these deductibles. The triggering event ultimately would determine if a windstorm deductible applies to a policyholder's loss.

PIANY is a trade association representing professional, independent insurance agencies, brokerages and their employees throughout the state.

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