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“[Superstorm] Sandy wreaked havoc on many of our lives; people were treated unfairly and horribly by their insurance companies, even though they did nothing wrong,” Assemblywoman Pheffer Amato noted.
By Michael V. Cusenza
The Assembly recently approved a bill that would establish standards for hurricane windstorm deductibles, creating uniformity in the operation of such deductibles with respect to the triggering event, according to Assemblywoman Stacey Pheffer Amato (D-Howard Beach), the measure’s sponsor.
“Superstorm Sandy ravaged South Queens. Homes, local businesses, livelihoods, and schools were completely destroyed. We saw parts of our homes, boardwalk, and cars floating in the middle of the street. Our community was wiped out completely. And now, nearly six years later, people are still trying to get their lives back together while overcoming continuous complications,” Pheffer Amato said. “This bill seeks to ensure basic fairness. After the storm, neighbors came to find that they were being treated differently by their [respective] insurance companies—one family being told that a windstorm had occurred and their deductible applied, while the other was told that there was no windstorm. Sandy wreaked havoc on many of our lives; people were treated unfairly and horribly by their insurance companies, even though they did nothing wrong. Our message in the Assembly is clear: We must protect our consumers in this state from natural disasters and from companies in which they entrust their financial security.”
According to Assembly records, the State Superintendent of Financial Services would set the standards for the deductibles.
“Uniform standards for—and notice explaining the operation of—catastrophic windstorm deductibles are necessary to promote easier comparison between different insurers’ options, and to ensure clear understanding of the extent of policyholder exposure under these options,” according to the Justification for the measure. “The requirements for understandable and fair standards will ensure that catastrophic windstorm deductibles are reasonable, actuarially appropriate and applied in the proper circumstances.”
The State Senate is now considering the bill.
