For the third consecutive legislative session, PIANY saw its top legislative priority go from an idea to a reality. Gov. Kathy Hochul has signed A.112/S.4157, a bill that repeals the outdated anti-arson application requirements in New York City, the last municipality in the state where the application was required. This is a significant victory for property owners, insurance agents and consumer advocates alike.
A relic of the past
The anti-arson application was first enacted in the late 1970s as a response to rampant arson-for-profit schemes in major cities. At the time, requiring property owners to annually complete a specialized form was seen as a reasonable fraud-prevention tool. However, the landscape of fraud detection has evolved dramatically. Modern insurers now rely on advanced data analytics, centralized property records and robust investigative tools—making the anti-arson application redundant and obsolete.
Harmful consequences for consumers
While originally well-intentioned, the anti-arson application has become a source of unnecessary hardship for property owners:
Unnecessary policy cancellations. Owners who forget or fail to submit the form on time face policy cancellations, even when there’s no evidence of fraud.
Costly replacements. Replacing a cancelled policy can cost hundreds of dollars.
Coverage raps. Cancellations create dangerous gaps in insurance, leaving owners and third parties—such as tenants—vulnerable to catastrophic losses.
Equity and consumer protection
The requirement has been shown to disproportionately harm vulnerable groups, including small landlords and low-income property owners, who may lack the resources to navigate complex administrative requirements. Repealing the mandate will reduce barriers to maintaining essential property insurance and ensure fair, equitable access for all New Yorkers.
Modern fraud prevention
Today, insurers are required to file fraud-prevention plans with the New York State Department of Financial Services and employ sophisticated tools to detect and prevent fraud. These measures are far more effective than the outdated anti-arson application, providing robust protection without imposing unnecessary burdens on policyholders.
Legislative milestone
The repeal bill passed both the Assembly and Senate with strong bipartisan support. With Gov. Hochul’s signature, New York City joins Buffalo and Rochester in eliminating the anti-arson application requirement, aligning the city with statewide best practices and modernizing its insurance laws.
PIANY extends its gratitude to Assemblymember Samuel Berger, D-27, and Sen. James Sanders, D-10, for their dedicated sponsorship of this legislation. The association is especially thankful for the efforts of insurance agents statewide who contacted their legislators to emphasize the importance of eliminating this outdated requirement.
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.
