11/06/2012
Please read updated Report from the Department of Financial Services regarding homeowners insurance so that New Yorkers can discard debris and expedite claims....
PIANY storm update--Nov. 6, 2012
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PIANY regulatory update
DFS changes rules so New Yorkers can discard debris and expedite claims
Department of Financial Services Superintendent Benjamin M. Lawsky instructed insurers to accept homeowners’ documentation, including photos and video, of losses so residents can discard debris before a second storm hits the region. Typically, insurance companies require an on-site inspection before a claim can be processed. The state also imposed a 30-day moratorium on cancelling or terminating homeowners’ and small business owners’ insurance policies in storm stricken areas for any reason, including nonpayment of premiums. It may be extended, if necessary.
PIANY has been in ongoing communication with DFS officials since the storm was first predicted to seek protections of this nature for consumers and agents.
Both the directive dealing with dangerous debris and the moratorium on terminating policies cover the storm-damaged areas: New York City and Nassau, Suffolk, Westchester, Rockland and Orange counties.
The governor previously announced hurricane deductibles will not apply in most downstate homeowners insurance policies because Sandy did not have sustained hurricane force winds when it hit New York. Most insurers have agreed not to apply these deductibles, which can amount to tens of thousands of dollars.
Reminder: The DFS directive covers homeowners insurance policies. Flood insurance policies are covered by FEMA regulations. FEMA also is expected to issue guidance on this issue.
Homeowners with both homeowners and flood insurance should follow FEMA rules to preserve their claims under flood insurance.
For homeowners insurance claims, if dwelling debris must be removed before the adjuster is able to examine it, homeowners should:
1. inventory all the damaged items;
2. take individual color photos of the damaged property, targeting any high-ticket items and, if possible, videotape the damaged items;
3. have the camera set to record the date/time;
4. if possible, take samples or swatches of carpeting, wallpaper, furniture upholstery, window treatments and other items where quality will be a claims factor;
5. the inventory should reflect the corresponding picture for validation; and
6. keep this information in a secured location to share when the adjuster arrives.
This process applies to all contents that are damaged and will be claimed.
Please review PIA’s Storm Info Central tool kit regularly for the latest information on Storm Sandy, as well as materials and documents you can share with your clients.
PIA is here to help in any way possible—please let us know what we can do to help your agency. Contact us at (800) 424-4244 or email [email protected].
11/12
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