New York has enacted a law to standardize definitions for hurricane windstorms, aiming to create consistency in deductibles and how triggering events are determined, according to BestWire.
The law, effective 90 days after its Nov. 22 enactment, requires the New York Department of Financial Services (DFS) superintendent to issue regulations within 180 days of its start. The DFS declined to provide additional details about the law.
Before this law, varying definitions of windstorms could cost policyholders thousands of dollars after wind-related claims, according to the Professional Insurance Agents of New York State (PIANY).
Home insurance policies often included hurricane windstorm deductibles that were higher than standard ones, calculated as a percentage of a home’s replacement cost. Over 100 different windstorm definitions had been approved by the state insurance regulator before the legislation.
PIANY identified the bill as a top legislative priority, highlighting the clarity it would bring to policyholders.
Simplifying these definitions will help consumers compare premiums and deductibles without the added complexity of inconsistent terms
It also noted that standardized definitions would help agents, companies, and local leaders manage post-hurricane situations more effectively without reviewing individual policy details.
Opponents of the bill argued it could reduce homeowners’ flexibility in negotiating policy terms, such as adjusting deductibles to modify premiums.
Republican Assemblyman Jake Blumencranz warned that the law could make New York’s insurance market resemble Florida’s, where rigid standards have rendered some homes uninsurable. “This will fast-track us toward a similar situation,” he said during debates.
Attempts to reach the New York Insurance Association for comment were unsuccessful.
