New York Insurance Superintendent Eric Dinallo announced he has issued an advisory to insurance companies notifying them that canceling a homeowners policy only on the basis that a dwelling is unoccupied is an illegal mid-term cancellation.
The announcement said the "circular letter" advisory was issued to cover incidents such as cancellations while owners are in the middle of selling their house to relocate, or situations where a policyholder's job requires them to be away frequently on travel assignments and the insurer cancels saying the home is "unoccupied."
Mr. Dinallo urged consumers encountering this issue to contact the Insurance Department. He said insurance companies must reinstate the policies of affected consumers. The action could potentially affect financially-pressed consumers involved in forfeitures, he noted.
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