What's happening
This bill limits hurricane-related windstorm deductibles in homeowner and dwelling fire insurance policies to $1,500 and sets strict application criteria.
Why it matters
Caps out-of-pocket hurricane costs. By limiting windstorm deductibles to $1,500, the bill could significantly reduce the unexpected financial burden on homeowners after a hurricane, particularly for those in coastal or hurricane-prone areas.
Targets only the most severe storms. The deductible cap would only apply when losses are caused by hurricanes with wind speeds of 125 mph or greater, ensuring that insurers cannot apply higher deductibles for less severe storms or non-hurricane wind events.
Improves transparency and consumer awareness. Insurers would be required to clearly state the exact deductible amount in numerical terms and explain when it applies, helping policyholders better understand their coverage and avoid surprises at claim time.
May impact insurance industry practices. By standardizing and limiting deductibles, the legislation could affect how insurers price and design their policies for high-risk areas, potentially influencing premiums, coverage options, or insurer participation in certain markets.
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Cap Windstorm Deductibles at $1,500
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to insurance
- Referred to insurance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Cap Windstorm Insurance Deductibles
In Senate Committee · Insurance · Sponsor Kenneth P. LaValle
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 1622 A. 978
2017-2018 Regular Sessions
SENATE - ASSEMBLY
January 10, 2017
IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Insurance
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Insurance
AN ACT to amend the insurance law, in relation to windstorm insurance notice regarding deductibles
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3445 of the insurance law, as added by chapter 44 of the laws of 1998, is amended to read as follows:
§ 3445. Windstorm insurance notice. 1. The superintendent shall by regulation establish disclosure requirements with respect to the operation of any deductible in a homeowner's insurance policy or dwelling fire personal lines policy which applies as the result of a windstorm. Such regulations shall prescribe the form of a notice to be provided by an insurer to an insured. The notice shall explain in clear and plain language the amount of the deductible subject to subsection three of this section, the circumstances under which the deductible applies and any other matters which the superintendent, in his or her discretion, shall deem necessary or appropriate.
2. A catastrophic windstorm deductible applicable to a homeowner's insurance policy or dwelling fire personal lines policy shall not be approved by the department unless the deductible is applicable only to losses incurred in a hurricane which causes wind speeds of one hundred twenty-five miles or greater per hour to occur within the state.
3. The maximum deductible allowed shall not be greater than fifteen hundred dollars and shall be stated on the policy in numerical terms.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02106-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.