N.Y.: Addressing insurance costs, disaster preparedness: A look at Hochul’s initiatives

January 23, 2025

The start of New York state’s legislative session comes with its fair share of traditions and responsibilities. From the swearing-in of new assemblymembers and senators to the unveiling of committee rosters, these rituals set the stage for the year ahead. Last week, Gov. Kathy Hochul upheld one of these long-standing traditions by delivering her third State of the State address—a cornerstone event that lays out the governor’s vision, priorities and legislative agenda for the year.

The State of the State is an annual address delivered by the governor to outline their vision, priorities, and legislative agenda for the year ahead. It’s essentially a roadmap for addressing the state’s most pressing challenges and opportunities. The speech covers a wide range of topics, including the economy, public safety, health care, housing, education, infrastructure and climate change. Property/casualty insurance rarely takes center stage in this address, and 2025 was no exception. However, Hochul did touch on rising insurance costs tied to affordable housing, and she outlined risk mitigation initiatives aimed at reducing losses—steps that could have ripple effects across the p/c insurance landscape.

Tackling insurance costs for affordable housing

One of the most pressing challenges facing affordable housing providers in New York state is the skyrocketing cost of insurance. Many property owners report paying more for reduced coverage, with renters often shouldering the financial impact. Recognizing this strain, Hochul’s plan emphasizes the use of private insurance captives to lower costs.

The governor’s proposal

Nonprofits—which frequently struggle to meet eligibility standards for participating in these captives—will receive support to make necessary repairs and upgrades to qualify. By investing in infrastructure and ensuring compliance with captive eligibility requirements, nonprofits can access better coverage at more affordable rates. This measure should help reduce costs for affordable housing owners and, by extension, renters, ensuring more sustainable housing options for low-income New York residents.

Building resilience: Mitigating losses before disasters strike

Hochul’s disaster preparedness strategy focuses on proactive measures to reduce risks and ensure faster recovery when severe weather events occur. By expanding funding and streamlining programs, New York state aims to build a stronger, more resilient future.

Expanding the resilient and ready programs

The governor announced an expansion of the Rapid Response Home Repair, and the Resilient Retrofits programs. Those programs already have helped over 1,300 homeowners recover and prepare for future disasters. Hochul’s plan includes:

  • Increased funding: To meet growing demand, more resources will be allocated to these programs.
  • Flexible resource allocation: Disaster response and resilience measures will be prioritized based on immediate and long-term needs.
  • Enhanced retrofits: Upgrades such as shatterproof glass and storm shutters will not only protect homes, but also may reduce insurance premiums for homeowners.
  • Streamlined deployment: Pre-authorized local administrators will ensure rapid assistance for families in the aftermath of disasters.

Supporting small businesses after disasters

Small businesses often face significant challenges following extreme weather events, from inventory losses to employee layoffs. The modernization of the Jobs Retention Tax Credit Program is designed to address these challenges:

  • Lower eligibility thresholds will allow businesses with 10 or more employees to participate.
  • Removal of industry-specific limitations will ensure all affected businesses can access support.
  • A tax credit for employee wages will help businesses retain workers and contribute to community recovery efforts.

Investing in green resiliency

Green infrastructure is central to the governor’s vision for stormwater management and climate resilience. Proposals include continuing the Green Resiliency Grant program, funded by the Environmental Bond Act, to support projects like rain gardens, porous pavement and stormwater retention systems The initiative will prioritize projects that offer substantial risk reduction and long-term sustainability.

Coastal resiliency and waterfront protection

New York’s coastlines face mounting threats from sea level rise and extreme weather. To protect these critical areas a new Department of State grant program will fund nature-based solutions, such as living shorelines and ecosystem restoration. There also will be expanded support for Local Waterfront Revitalization Plans to address flood risks and improve coastal sustainability.

Bradford J. Lachut, Esq.
PIA Northeast |  + posts

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.

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