Key Takeaways
- New York law requires a 10-day free look period for property insurance policies
- New York Property Insurance Underwriting Association (NYPIUA) provides coverage for high-risk properties as the residual market
- Insurers must provide 60 days notice for non-renewal of homeowners policies (except non-payment)
- New York prohibits unfair discrimination in property insurance underwriting
- The standard fire policy in New York is the 1943 New York Standard Fire Policy form
New York Homeowners Insurance Requirements
New York has specific property insurance regulations that protect consumers and ensure adequate coverage availability.
Free Look Period
New York provides a 10-day free look period for property insurance:
- Policyholder can return for full premium refund
- Begins when policy is delivered
- No questions asked, no penalty
- Applies to new property insurance policies
New York Property Insurance Underwriting Association (NYPIUA)
The NYPIUA is New York's residual market for property insurance, providing coverage for high-risk properties that cannot obtain coverage in the voluntary market.
What NYPIUA Covers
| Coverage | Included |
|---|---|
| Fire and Lightning | Yes |
| Extended Coverage (EC) | Yes |
| Vandalism and Malicious Mischief | Optional |
| Theft | Optional |
| Liability | No (separate policy needed) |
When NYPIUA Is Used
- Property located in high-risk areas
- Property has been declined by voluntary market insurers
- Property doesn't meet standard underwriting guidelines
- After major disasters when voluntary market tightens
- Urban areas with limited market availability
Important: NYPIUA is a last resort, not a first choice. It typically costs more and provides more limited coverage than voluntary market policies.
How NYPIUA Works
- All admitted property insurers must participate
- Losses are shared among member companies
- Rates are filed with and approved by DFS
- Policies issued through licensed producers
New York Standard Fire Policy
New York uses the 1943 New York Standard Fire Policy:
Key Features
- Standard policy form required by law
- Covers fire and lightning as base perils
- 165 lines of standard provisions
- Forms the basis for most property policies
- Extended coverage added by endorsement
Cancellation and Non-Renewal Requirements
New York has strict requirements for canceling or non-renewing property insurance:
Cancellation Notice Requirements
| Reason for Cancellation | Notice Required |
|---|---|
| Non-payment of premium | 15 days |
| Other reasons (first 60 days) | 15 days |
| After 60 days in force | 60 days |
| Material misrepresentation | 60 days |
Non-Renewal Notice Requirements
| Policy Type | Notice Required |
|---|---|
| Homeowners | 60 days before expiration |
| Commercial Property | 60 days before expiration |
| Reason Required | Must state specific reason |
Special Protections
New York provides additional consumer protections:
- Insurers cannot cancel or non-renew solely based on:
- Filing a single claim
- Inquiring about coverage
- Number of policies written in an area
Flood Insurance
New York property policies exclude flood:
Flood Coverage Options
| Option | Description |
|---|---|
| NFIP | National Flood Insurance Program |
| Private Flood | Available in some markets |
| Excess Flood | Above NFIP limits |
Disclosure Requirements
- Agents must disclose flood exclusion
- Must explain NFIP availability
- Special disclosure for coastal properties
- Flood zone notification required
Earthquake Coverage
- Standard property policies exclude earthquake
- Earthquake coverage available by endorsement
- Separate deductible applies (percentage of coverage)
- Not as common as in western states
How many days notice must a New York insurer provide for non-renewal of a homeowners policy?
What is the NYPIUA?