Key Takeaways

  • New York requires insurers to acknowledge property claims within 15 business days
  • Insurers must accept or deny claims within 30 days after completing investigation
  • Payment must be made within 10 business days after claim approval
  • The Superintendent can impose penalties for unfair claims practices
  • New York has specific requirements for independent adjusters
Last updated: January 2026

New York Property Insurance Claims Requirements

New York has specific requirements for handling property insurance claims that protect consumers.

Claims Handling Timelines

Required Timeframes

ActionTimeframe
Acknowledge claim15 business days
Request additional information15 business days
Begin investigationPromptly
Accept or deny claim30 days after investigation complete
Pay claim10 business days after approval

Written Communication Required

Insurers must provide written communication for:

  • Claim acknowledgment
  • Request for additional documentation
  • Claim denial (with specific reasons)
  • Settlement offers
  • Payment explanations

Unfair Claims Practices

New York prohibits unfair claims settlement practices:

Prohibited Practices

  • Misrepresenting policy provisions to claimants
  • Failing to acknowledge claims promptly
  • Failing to communicate claim decisions promptly
  • Denying claims without reasonable investigation
  • Offering substantially less than reasonable value
  • Delaying payment to force settlement
  • Not attempting good faith settlement when liability is clear
  • Requiring unnecessary paperwork

Penalties

ViolationPotential Penalty
Per violationUp to $5,000
Pattern of violationsUp to $1,000 per violation
Bad faithAdditional damages
Consumer harmRestitution required

Independent Adjusters

New York licenses and regulates independent adjusters:

Licensing Requirements

  • Must be licensed by DFS
  • Examination required
  • Continuing education requirements
  • Cannot adjust their own claims

Adjuster Types

TypeDescription
Staff AdjusterEmployee of insurer
Independent AdjusterWorks for multiple insurers
Public AdjusterRepresents policyholders

Public Adjusters

New York regulates public adjusters who represent policyholders:

Requirements

  • Separate license required
  • Cannot solicit within 24 hours of loss
  • Fee limitations apply
  • Must provide written contract
  • Disclosure of fees required

Fee Limitations

  • Cannot charge excessive fees
  • Written agreement required
  • Clear disclosure of percentage
  • Cancellation rights disclosed

Appraisal Process

New York property policies include appraisal provisions:

When Appraisal Applies

  • Disagreement on amount of loss
  • Either party can demand appraisal
  • Each party selects an appraiser
  • Appraisers select an umpire

Appraisal Process

  1. Written demand for appraisal
  2. Each party selects appraiser within 20 days
  3. Appraisers attempt to agree
  4. If no agreement, umpire decides
  5. Agreement of two of three is binding
Test Your Knowledge

Within how many business days must a New York insurer acknowledge a property insurance claim?

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Test Your Knowledge

How quickly must a New York insurer pay an approved property claim?

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