NYC Gazette

Speaker Carl Heastie and Insurance Committee Chair David Weprin announced the passage of several bills aimed at helping homeowners prepare for severe weather events and expanding insurance coverage to support recovery efforts.

“Unfortunately, due to climate change, severe weather events are becoming more commonplace across the state,” said Speaker Heastie. “These bills will expand coverage to homeowners and help them prepare for the future as we continue to fight against climate change in New York.”

“This is a much-needed next step to expand coverage, keep premiums affordable and keep New Yorkers covered,” said Assemblymember Weprin. “This package also allows us to research alternatives to our current system to better understand affordability issues and how we can build a better system to support the future of insurance in New York.”

Included in this package is a bill directing the Department of Financial Services (DFS) to study increases in property insurance premiums affecting affordability, lack of availability of flood insurance coverage, and supporting a private flood insurance market in New York (A.8942, Weprin).

Additional legislation requires DFS to implement the homeowner natural disaster preparedness, home safety, and loss prevention program authorized in the Enacted State Fiscal Year (SFY) 2016-2017 Budget (A.136-A, Cruz).

“This program provides an incredible overview of what homeowners and renters need to do to prepare their home for severe weather events while providing a possible incentive of lowered insurance premiums,” said Assemblymember Catalina Cruz. “This bill will require DFS to approve educational courses that will provide useful information on actions before, during, and after natural disasters, strategies to reduce risk exposure, and information about installing equipment and devices that can help mitigate damage.”

Also included is a bill expanding eligibility for the Coastal Market Assistance Program (C-MAP) within one mile of salt-water bodies as well as Lake Erie, Lake Ontario, the Saint Lawrence River, Niagara River, among others determined by the New York Property Insurance Underwriting Association (A.9821, Otis).

“It is vitally important that our laws keep pace with the increased frequency and reach of damaging storms,” said Assemblymember Steve Otis. “Coastal communities deserve expanded access to insurance coverage and our continued focus on making shoreline infrastructure more resilient.”

The package includes authorization for selling “parametric insurance,” which provides set payments based on the magnitude and proximity of severe weather events (A.10344, Sillitti).

“As the severity of our storms becomes more intense, insurance companies may not want to take the risk covering residences in risky areas like coastal communities,” said Assemblymember Gina Sillitti. “Authorizing innovative products such as parametric insurance will help fill gaps and provide residents needed coverage at affordable rates.”

Lastly, legislation provides further coverage for water damage from backed-up sewers or sump pumps by prohibiting policies from excluding such damage if caused directly or indirectly by an excluded peril like flooding (A.10343, Weprin).

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