Assembly approves bill to standardize hurricane windstorm deductibles after divided debate

The New York State Assembly on May 17 passed A.2866, a bill that would require the superintendent of the Department of Financial Services to make regulations establishing standards for hurricane windstorm deductibles in homeowners and dwelling fire insurance policies.

Sponsor Assemblymember Pfeffer Amato told colleagues the bill “would establish reasonable standards for the operation of hurricane windstorm deductibles, and promote better understanding of the applicability and amount of hurricane windstorm deductibles.” She said the measure aims to protect homeowners who have struggled to understand when their deductibles are triggered.

Opponents urged caution. “This 25‑year‑old bill is outdated,” said Representative Blummenkrend, arguing that changes in the reinsurance market and the experience of other states show uniform triggers can destabilize the private market. “You can look no further than the state of Florida, who in 2006 decided to make such an implementation. It has been nothing short of a catastrophe,” he said, warning of large increases in the state insurer and fiscal risk.

Clerk records show the body approved the measure on the floor by a recorded vote reported as Yeas 133, Nays 12; the bill takes effect 90 days after enactment, per the reading of the last section.

Supporters said the bill brings needed clarity for consumers who have litigated coverage disputes after storms such as Sandy and Irene. Opponents said it removes consumer choice and could push more homeowners into state plans unless drafted carefully.

Next steps: the bill will be sent to the Senate and, if passed, to the governor for signature or veto. No amendments were reported on the floor.