New homeowners insurance rules take effect in New York
Hurricane Sandy may be a distant memory for some, but many people along the East Coast continue to struggle with the damage the powerful storm caused in late October 2012. Nearly four months after the storm struck, homeowners in several states are still waiting for their claims to be processed by their insurance provider. Many of these claims concern flood insurance, while others are in the realm of homeowners insurance. In New York, lawmakers have instituted new rules that are expected to help speed the recovery process by forcing insurers to process claims more quickly.
Homeowners insurance companies see new restrictions concerning claims investigations
According to the new rules, homeowners insurance and flood insurance providers have 15 business days after receiving a claim to determine whether or not to issue payouts to policyholders. Insurers can petition for a 30-day extension on this deadline in order to further investigate claims, but they can no longer seek 90-day extensions as they had been able to do previously. These particular rules apply specifically to homeowners insurance, but not to flood insurance.
Flood insurance not subject to new rules
Flood insurance is strictly within federal jurisdiction, making it difficult for state officials to address the issues concerning this type of coverage. The majority of the damage caused by Hurricane Sandy came in the form of floods, but the storm did cause significant damage due to its strong winds. While strong winds did cause some damage, homeowners have primarily been struggling with problems concerning their flood insurance coverage. These are not problems exclusive to New York, as many consumers in New Jersey and other states impacted by the storm have experienced the same issues.
Homeowners insurance payments continue to see delays
New York lawmakers are keen to expedite the recovery process and ensure that the state’s residents can reclaim a sense of normalcy in their lives. Many people have been displaced by Hurricane Sandy, with many awaiting financial aid from their insurance policies four months after the storm hit New York. Lawmakers are putting more pressure on insurance companies in order to ensure that consumers receive the payouts they are due.