The New York State Department of Financial Services has finalized a regulation establishing a standardized definition of “hurricane” for homeowners insurance policies statewide—marking a significant win for consumer clarity and policy transparency. This action directly implements legislation championed by PIANY and signed into law by Gov. Kathy Hochul late last year.
The newly adopted regulation—codified as the Third Amendment to 11 NYCRR 74 (Insurance Regulation 159)—creates consistent standards for how and when hurricane deductibles can be applied. It takes effect on Feb. 2, 2026.
A standard that brings clarity
Previously, insurers in New York state were permitted to use a wide range of hurricane definitions, resulting in more than 100 DFS-approved variations. These inconsistencies made it difficult for consumers to fully understand the coverage in their homeowners policies and could leave policyholders vulnerable to high out-of-pocket costs during windstorm events.
Now, under the new regulation, “hurricane” is uniformly defined as a tropical cyclone with sustained surface winds of 74 mph or higher, as determined by the National Weather Service or a similar entity. Importantly, the regulation specifies that hurricane deductibles:
- Can only be triggered after a hurricane makes landfall in New York state.
- Only apply to wind damage occurring within a 24-hour window: starting 12 hours before landfall and ending 12 hours after the last hurricane watch or warning is canceled.
- Must be displayed clearly in policy documents, both as a percentage and a dollar amount and accompanied by a plain-language disclosure notice.
Additionally, the regulation mandates that hurricane deductibles do not apply to loss-of-use coverage and that only one deductible—typically the higher one—can be applied to a specific loss.
PIANY’s legislative leadership
This landmark regulatory reform stems from legislation (A.2866/S.4199) spearheaded by PIANY and signed by Gov. Hochul during the 2024 session. The bill was PIANY’s top legislative priority, developed in response to members’ concerns about the lack of uniformity and the potential financial burden it placed on policyholders.
PIANY’s advocacy campaign involved meetings with dozens of lawmakers, robust grassroots efforts—including multiple member-led letter-writing campaigns—and a focused push that resulted in a 1,000% increase in legislative co-sponsors, including unanimous support from Long Island senators.
Looking ahead
With DFS now enforcing a single, consumer-friendly standard for hurricane deductibles, New Yorkers can better compare insurance options and understand their coverage. This reform not only simplifies decision-making, but it also provides crucial protection for homeowners when they need it most—after a storm strikes.
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.
