In light of increasingly common natural disasters that have left many communities across New York State devastated, Assemblymember Rhoda Jacobs (D-Brooklyn) announced she supports new legislation that would create the Homeowners Bill of Rights to inform homeowners of their insurance policy’s specific details and a second measure that would create a more timely and thorough response from insurance companies in cases of disaster.

“Sadly, devastating storms that used to come every few decades now occur more frequently in New York, leaving our families to cope with the tragic consequences,” Jacobs said. “In the aftermath of these storms, anything other than immediate action by insurance companies is unacceptable. It’s crucial that we prepare homeowners for the unexpected, make sure they are well-informed and that they have access to aid without endless delays.”

Create the Homeowners Bill of Rights and insurance coverage guide

The Homeowners Bill of Rights would require insurers to provide property owners with an easy-to-understand disclosure notice detailing their coverage in the event of a catastrophic occurrence; how and when to file a claim; their rights if a claim is denied or a settlement offer is insufficient; and where and how to obtain coverage for catastrophic events (A.2287).

The bill would also direct the state Department of Financial Services to create a Consumer’s Guide on Insuring against Catastrophic Losses and require insurance companies to inform property owners where they can obtain it so they can be better educated and understand their rights.

“For many people suffering from the overwhelming damage of a natural disaster, it should never come as a surprise that the insurance policy they purchased does not include specific coverage to help them rebuild,” Jacobs emphasized. “This legislation would make sure that every homeowner is aware of the specific coverage available to them, while having access to the assistance needed to get the coverage they want.”

Streamlining insurance claims

“Following Superstorm Sandy and Tropical Storms Irene and Lee, there were far too many lengthy delays in the time it took insurance companies to process claims and make payments to policyholders,” Jacobs said. “With so many families displaced from their homes and small businesses unable to open their doors after the destruction of a disaster, we can’t allow these problems to go unanswered any longer.”

Assemblywoman Jacobs is backing another piece of legislation that would establish claim and settlement standards for insurance companies to follow when a disaster strikes (A.1092). In addition, this measure would tighten the timeframe requirements for insurers to respond to claims resulting from disasters and emergencies. Insurance companies would be required to begin investigating these settlement claims within six days, and notify property owners within 15 days as to whether their claim has been accepted or rejected, including their right to appeal if it has been rejected. If a claim has been accepted, insurers are required to pay it within three business days.

“By shortening the time frame, an insurance company has to respond to claims promptly. We would be able to give our families the chance to rebuild and move on with their lives right away,” Jacobs said.

(YWN Desk – NYC)