The Department of Financial Services (DFS) issued a pre-proposed regulation on standards for hurricane windstorm deductibles, as required by A2866 (Pheffer Amato)/S4199 (Sanders) signed Chapter 460 of the Laws of 2024.

In NYIA’s initial review, the pre-proposed regulation does not specify the category of hurricane that would trigger a hurricane deductible, but instead referred to “specific hurricane” with hurricane defined as having winds of 74 miles per hour or higher. The pre-proposed regulation allows a dedu ctible to apply to loss resulting from direct damage caused by winds within the period beginning 12 hours before a hurricane makes landfall and ending 12 hours after the meteorological entity cancels the last hurricane watch or hurricane warning it issued. NYIA advocated for a 24-hour trigger in line with Connecticut’s law, but DFS appeared to be proposing standards more in line with New Jersey. Additionally, the pre-proposed regulation also caps the deductible amount to five percent of the stated insured amount for the dwelling.

Comments are due to Joana Lucashuk at joana.lucashuk@dfs.ny.gov by April 10, 2025. If you would like NYIA to submit comments on your behalf, please contact Staci Steinfeld at ssteinfeld@nyia.org by April 8, 2025.