Comments from U.S. Sen. Charles E. Schumer, D-N.Y, criticizing three carriers for non-renewing Long Island homeowners' coverage highlights a problem independent agents have seen for more than 10 years, says an association executive.
Insurance Agents & Brokers of Suffolk County President Joanne Bentivegna says this insurance issue is getting worse for Long Island residents and businesses, especially those near the coast.
Yesterday, Schumer released a statement singling-out Allstate, State Farm and Liberty Mutual for withdrawing from the Long Island market by non-renewing homeowners policies. He said his office has received numerous complaints, adding that customers have had to turn to the Excess and Surplus Lines market for coverage, paying 15 to 20 percent more than they paid under their standard policies.
Responding to Schumer's accusation, all three insurers said they are actively writing homeowners insurance in New York State. Allstate and Liberty Mutual said they are writing business on Long Island and remain committed to doing so. State Farm said its "process of managing our business and risk profile in coastal regions is ongoing and will continue to evolve as we evaluate coastal exposure and make adjustments where appropriate."
Bentivegna says State Farm deserves some criticism because its non-renewals are causing capacity issues, although she does point out that the carrier is acting within the law, which permits non-renewal of 3-5 percent of an insurer's book.
And while she highlights Schumer's criticisms, she says the solution to Long Island's insurance issues goes beyond chastising three major carriers. She says state legislators should make important changes in the insurance code so that the property-insurance marketplace becomes attractive to carriers once more.
She says consistent windstorm deductibles and triggers on what constitutes a hurricane would be one solution.
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