Albany, NY - June 10, 2015 - Assemblyman Todd Kaminsky announced today that legislation (A.7537) he sponsored and championed on behalf of storm victims unanimously passed the Assembly, taking New York State a step closer to closing an insurance loophole that increases costs for owners of storm-damaged homes.
“After superstorm Sandy, some homeowners were initially told that because the storm was not classified as a hurricane, their homeowner’s insurance windstorm deductible did not apply, and the homeowner was therefore responsible for the entire cost of damage attributed to wind,” said Assemblyman Kaminsky. “Anyone who denies that superstorm Sandy was a hurricane is simply wrong, and homeowners should not have to suffer through such confusion and last minute insurance surprises after losing so much already in the storm.”
Most homeowner’s insurance policies offer windstorm deductibles, which require a certain percentage or dollar amount of homeowner contribution to damage incurred by wind and then cover the excess costs. A deductible is applied when a “triggering event” occurs, such as a federally declared hurricane or other natural disaster.
However, there is currently no uniform definition in New York State for a “triggering event,” thus creating discrepancies in coverage between different policies. For example, neighbors on the same block equally affected by superstorm Sandy received different determinations on whether the storm triggered their deductible into effect or not. Assemblyman Kaminsky’s legislation would mandate a uniform definition for a “triggering event” so that all policyholders would receive coverage from their windstorm deductible.
Further, deductible percentages can be misleading, as they can range from 1 to 7.5 percent of the value of the home, not of the cost of damage incurred. This clause is not always clearly defined or made easy to understand, which means the required homeowner contribution before receiving an insurance payout can be much higher than initially expected. Assemblyman Kaminsky’s bill would ensure that this clause is made clearly known and understandable to all policyholders and prospective buyers.
“Insurance companies are supposed to provide relief after a storm, not more stress. This legislation would ensure that all families receive proper coverage after a windstorm, and it would greatly improve a consumer’s ability to understand their policy and make informed choices,” said Assemblyman Kaminsky. “I fought hard for this legislation’s passage in the Assembly and will continue to advocate for all families affected by superstorm Sandy.”