(Long Island, NY) Assemblyman Edward Hennessey (D-Medford) announced the passage of legislation that establishes a Homeowners Bill of Rights, ensures transparency and holds insurance companies accountable.
The Homeowners Bill of Rights (A.2287) requires insurers to provide property owners with an easy-to-understand disclosure notice detailing their coverage in the event of a catastrophic event. Issues like how and when to file a claim; their rights if a claim is denied or if a settlement offer is insufficient; and where and how to obtain coverage for catastrophic events will need to be clearly disclosed.
“Every homeowner has a right to know what kind of coverage they have and what kind of coverage they would need should another disaster like Super Storm Sandy happen again,” Assemblyman Hennessey said.
Establishing claim and settlement standards for insurance companies to follow when a disaster strikes is another piece of legislation that Hennessey supports (A1092). The legislation also seeks to tighten the timeframe requirements for insurers to respond to claims resulting from disasters and emergencies. Specifically, insurers would be required to begin investigating settlement claims within six days and notify property owners within 15 days as to whether their claim has been accepted or rejected. Finally, if a claim has been accepted, insurers are required to pay it within three business days.
“It is unacceptable for victims of natural disasters to have to wait for the insurance companies to settle their claims,” Assemblyman Hennessey said. “This legislation will make sure that the insurance companies promptly begin their investigation to help the victims move on with their lives.”
The Assembly package also includes bills that would:
- create a task force comprised of the state DFS, Division of Homeland Security and Emergency Services, insurance industry representatives, local disaster response officials, adjusters and consumer groups to examine how insurers respond to disasters (A.1093).
- provide discounts on fire and homeowners insurance after completion of a residential home safety and loss prevention course approved by DFS; such courses would be required to include information on preventing losses caused by weather-related events (A.1475-A);
- require DFS to establish standards for hurricane windstorm deductibles to help clarify which circumstances the insurance coverage applies to (A.2729);
- expedite the process for lawsuits filed against insurance companies that stem from unsolved claims from damage to a property during a declared disaster or emergency (A.5570);
- allow policy holders to take direct action for unfair claim settlement practices when the claim arises from a declared disaster or emergency, making sure insurers are held responsible for unfair claims practices (A.5780);
- limit the number of homeowners policies an insurance company can deny renewal and permanently grant the New York Property Insurance Underwriting Association the authority to expand into additional markets (A.6913);
- stop insurance companies from denying business interruption claims for losses that are covered under the policy because those losses were caused by something that is excluded from coverage (A.7452-A);
- establish clear definitions for terms and phrases commonly used in homeowners and certain commercial insurance policies (A.7453);
- require that insurers, agents, and brokers provide potential customers with copies of homeowners and certain commercial insurance policies before the policy is purchased (A.7454);
- prohibit an insurance company from denying a claim that would normally be covered under the policy solely because a separate flood occurred at the same time or contributed to the loss, but was not covered or was specifically excluded (A.7455-A).
Replenish Mastic Beach/Smith Point Sand Dunes
Thousands of hardworking families in the Mastic Beach and Smith Point area need to be protected from future storms. If another storm hits without replenishing the sand dunes at Smith Point County Park barrier beach, we could lose everything. Join me in calling on the Department of Homeland Security to replenish the sand dunes by visiting my website at http://assembly.state.ny.us/mem/Edward-Hennessey.
