Superstorm Sandy and extreme weather across New York leads to program which incentivizes disaster preparedness for property owners
With billions in damage to property across New York due to severe weather and with the limited resources of first-responders being put to their limit, New York State has adopted legislation proposed in 2014 by Assemblyman Marcos A. Crespo and Senator Jeff Klein which will incentivize property owners to make their dwellings more resilient to natural disasters through a home safety and loss prevention course. This is also a win-win for insurance companies who provide homeowners with authorized courses in disaster preparedness as this would reduce claims on the company.
The 2016-2017 State Budget which was adopted yesterday included the original legislation (A.6846/S.1529) which was vetoed by Governor Cuomo last year. With over $30 billion in property damage due to Superstorm Sandy alone, it became clear that more needed to be done to help New Yorkers become better prepared and more resilient to a major natural disaster. Across the State, outbreaks of severe weather in the form of flooding and tornadoes have also inflicted millions in property damage.
The new law permits the Department of Financial Services (DFS) to provide an actuarially appropriate reduction in homeowner’s insurance premiums upon a homeowner’s completion of a home safety and loss prevention course. This new law establishes that:
• Applicants have the ability to submit a home safety and loss prevention course to DFS for review;
• DFS will examine the course to discern if it warrants an actuarially appropriate reduction in rates of a homeowner’s insurance policy; and,
• Once DFS approves the course and the insured (the homeowner) produces a completion certificate proving they have completed the approved course, the insurer can provide the actuarially appropriate reduction in rates of a homeowner’s insurance policy for a period of 3 years.
“I am proud to once again partner with Senator Klein to work on programs which will improve public safety, save lives and better prepare our residents to cope with natural disasters which we have seen cripple communities,” stated Assemblyman Marcos A. Crespo, member of the Assembly Standing Committee on Insurance.
“In the wake of Superstorm Sandy, which devastated homes in my district, it’s imperative that New Yorkers learn how to fortify their properties in the event of extreme weather. Through this new course, homeowners will develop ways to reduce the risk of property damage posed by natural disasters and in securing their homes, lessen danger to their families, while getting a discount on their homeowners insurance,” said Senator Jeff Klein.
This is the second bill of three proposed in a report released by Assemblyman Crespo in May of 2013 to improve public safety from growing severe weather threats. “Tornadoes Rising: The Increasing Rates of Tornadoes in New York State” highlighted the dangers facing most New Yorkers from severe weather.
The report compiled tornado data since 1950 and found that “Over the past 15 years 146 tornadoes have hit our State, accounting for 35% of the 407 tornadoes impacting New York since 1950. Data shows 69% of the 407 tornadoes occurring since 1986, increasing in frequency over the past decade. Tornadoes now pose a tremendous risk to all of New York’s more than 19 million residents.” It also found that “New York City alone has seen a more than 300% increase in tornadoes since 2002.” A full copy of the report can be found at:http://assembly.state.ny.us/
According to Crespo, “We know that most people have put their sole trust in first responders as their primary vehicle to deal with a disaster and this is unrealistic when a mass disaster impacts any locality. It is impossible for first-responders to respond to what would become an overwhelming number of calls for assistance. That is why this legislation incentivizes homeowners to make their homes more disaster resilient so they can stay at home and in safety until help can reach them. Disaster preparedness should become a household term and way of life.”
