What's happening
This bill limits windstorm insurance deductibles to $1,500 and requires they only apply to losses from hurricanes with 125+ mph winds.
Why it matters
Caps out-of-pocket hurricane costs for homeowners. By limiting windstorm deductibles to $1,500, the bill protects policyholders from facing unexpectedly high expenses after a hurricane, helping families and individuals better plan for and recover from storm damage.
Prevents insurers from applying deductibles to lesser storms. Insurance companies could no longer impose windstorm deductibles for any storm below the 125 mph threshold, ensuring that policyholders only pay these higher deductibles for the most severe hurricanes.
Brings transparency and clarity to policyholders. The law requires that deductible amounts be clearly stated in numerical terms on insurance policies, reducing confusion and empowering consumers to make informed decisions about their coverage.
May impact insurance market and premiums. By restricting when and how much insurers can charge in deductibles, the bill could influence how companies price policies or manage risk, potentially affecting the availability or cost of homeowner’s insurance in high-risk hurricane areas.
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Who cares
Headline styles
Cap Windstorm Insurance Deductibles
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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 Deductibles at $1,500
In Assembly Committee · Insurance · Sponsor Fred Thiele
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.
Sponsor's memo
Title of bill
An act to amend the insurance law, in relation to windstorm insurance notice regarding deductibles
Purpose
This bill provides that catastrophic windstorm deductibles applicable to certain insurance policies shall not be applicable to losses incurred by theft, fire or other events.
Summary of provisions
Section 3445 of the Insurance Law, as added by Chapter 44 of the Laws of 1998, is amended to require the Superintendent to determine disclosure requirements due to a windstorm. Also to be determined by the Superintendent, shall be a notice which will state the amount of the deductible, the circumstances under which the deductible applies and any other matters which the Superintendent, in his or her discretion, shall deem necessary and appropriate.
Justification
The residents of the coastal areas of the State have been, for the past few years, subject to a homeowner's insurance market that has vacillated and fluctuated. Without real damage experience in these areas, insurance companies have instituted policies of huge deductibles predicted on hurricanes with minimum wind speeds. This bill will provide those residents with a stable market with reasonable coverage.
Legislative history
2015-16 S.322/A.93; 2013-14 S.1760/A.1222; 2011-12 S.1460/A.1413; 2009-10 S.241/A.337; 2007-08 S.139/A.177; 2005-06 S.716/A.1456; 2003-04 S.724/A.1337; 2001-00 S.2080/A.3479; 1999-00 S.4982/A.10714
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.