New York legislators have introduced a bill this week that seeks to cap the percentage-based hurricane deductibles for homeowners’ insurance or dwelling fire personal lines policy in New York State at $1,500.The bill also seeks to establish that such hurricane deductibles shall only be applicable to losses incurred in windstorms with speeds greater than 125 miles per hour.
The bill was introduced by New York State Senator Kenneth P. LaValle and New York State Assemblyman Fred W. Thiele.
The bill (S01760/A01222) proposes that, “The maximum deductible allowed shall not be greater than fifteen-hundred dollars and shall be stated on the policy in numerical terms.”
Additionally, the bill proposes that “a catastrophic windstorm deductible applicable to a homeowner’s insurance policy or dwelling fire personal lines policy shall not be approved by [New York State Department of Financial Services] unless the deductible is applicable only to losses incurred in a hurricane which causes wind speeds of one hundred twenty-five miles or greater per hour to occur within the state.”
The copy of the proposed legislation can be found at the New York State Assembly website.