Gov. Kathy Hochul has signed A.2866/S.4199 into law, authorizing the New York State Department of Financial Services to create a single, standardized definition of “windstorm” in homeowners insurance policies. This long-awaited legislation marks a significant milestone, bringing clarity and consistency to insurance coverage across the state.
The passage of this bill, a top legislative priority for PIANY, represents a major win for insurance professionals and homeowners alike. With this law now in place, New York joins a growing list of states including New Jersey, Connecticut and Florida in adopting a standardized approach to defining windstorms in insurance policies.
Why the windstorm bill matters
Before this legislation, the term windstorm was subject to a dizzying array of interpretations. More than 100 different definitions were filed with the DFS—leading to widespread confusion and frustration for policyholders and insurance agents.
Often, homeowners found themselves in the dark about what their policies covered, and disputes over windstorm-related claims were not uncommon. For agents and brokers, explaining these varied definitions to clients added layers of complexity to an already challenging process.
A triumph of grassroots advocacy
The signing of this law is the culmination of years of strategic advocacy by PIANY and its dedicated members. This effort included meeting with lawmakers, hosting educational campaigns and rallying insurance professionals to push for change.
PIANY’s advocacy emphasized that a standardized windstorm definition would not lead to higher premiums or reduced flexibility—concerns often raised by insurance carriers. By pointing to successful implementations in other states, PIANY demonstrated that this change would benefit everyone without adverse financial effects.
With this new law, the DFS will be directed to create a single definition that all policies will adhere to, providing much-needed clarity. This not only simplifies conversations between agents and their clients, but also creates a more predictable insurance landscape for consumers.
The impact of standardization
For homeowners, a standard definition means clear and consistent policy terms with fewer disputes and a better understanding of what their coverage entails. For agents and brokers, the new standard reduces the burden of interpreting and explaining inconsistent definitions, making it easier to build trust with clients.
What’s next?
While the signing of the windstorm bill is a monumental step forward, it’s also a reminder of what can be achieved when insurance professionals work together for a common goal.
PIANY plans to continue its advocacy efforts, focusing on other legislative priorities that aim to improve the insurance industry for both professionals and consumers. This success is a testament to the power of a unified voice and the importance of staying engaged in the legislative process.
Bradford J. Lachut, Esq.
Bradford J. Lachut, Esq., joined PIA as government affairs counsel for the Government & Industry Affairs Department in 2012 and then, after a four-month leave, he returned to the association in 2018 as director of government & industry affairs responsible for all legal, government relations and insurance industry liaison programs for the five state associations. Prior to PIA, Brad worked as an attorney for Steven J. Baum PC, in Amherst, and as an associate attorney for the law office of James Morris in Buffalo. He also spent time serving as senior manager of government affairs as the Buffalo Niagara Partnership, a chamber of commerce serving the Buffalo, N.Y., region, his hometown. He received his juris doctorate from Buffalo Law School and his Bachelor of Science degree in Government and Politics from Utica College, Utica, N.Y. Brad is an active Mason and Shriner.
