New York's Department of Financial Services is encouragingresidential property insurers to develop courses for policyholderson how to protect their properties during naturaldisasters.
|Under a new program in New York, residential property owners andrenters can qualify for discounts if they complete instructionalmaterials developed by property and casualty insurers.
|The DFS must approve the insurers' instructional courses inadvance, under a law established in 2016 by Gov. Andrew Cuomo andthe state legislature.
|In addition to rewarding policyholders for taking preparations to mitigate damages fromnatural disasters such as hurricanes, tornadoes and floods, theprogram also provides for steps taken against fire, theft, burglaryand personal injury.
|The law also allows for homeowner insurance discounts forinstalling equipment, devices and home improvements such as stormshutters that can reduce property damage and improve home safety,similar to programs in other states.
|Insurer participation not mandatory
The DFS, in a circular letter on March 15 describing the newprovision of state Insurance Law, §2346(5), said that the statuteallows for filing for state approval of disaster preparednessinstructional materials by property/casualty insurance companies,cooperative property/casualty insurance companies, nonprofitproperty/casualty insurers and property/casualty tradeorganizations including the New York Property Insurance UnderwritingAssociation.
|Insurer participation in the program is not mandatory, accordingto the DFS letter.
|Stephen Doody, the deputy superintendent of the financialservices department property bureau, said the agency will promptlyreview the insurers' programs to determine their compliance.Insurers were also told to submit the "actuarially appropriatediscounts" that they would offer customers who complete thecourses.
|More information about the disaster-preparedness program isavailable at the DFSwebsite.
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