Governor Andrew M. Cuomo recently signed two pieces of legislation relating to Superstorm Sandy and extreme weather. Bill A.453/S.1454 pertains to “anti-concurrent causation” clauses in homeowners’ insurance coverage for sewer backups. Following Sandy, many sewer backup claims were denied by insurance companies using anti-concurrent causation clauses. In those cases, even when sewer backup occurred when systems were shut off before the storm’s arrival, insurance companies claimed that by the time adjusters could inspect the loss or damage, flooding had also occurred. Therefore, insurance companies denied the claims, asserting that loss or damage caused by sewer backup could not be distinguished from loss or damage caused by flooding.
This new law requires the Department of Financial Services to examine and make recommendations concerning the treatment of these clauses in relation to homeowner’s insurance coverage for sewer backup. The Superintendent of DFS must also submit a report to the Governor and the Legislature by Jan. 1, 2017.
Cuomo also signed A.7156/S.5800, which will authorize Nassau County to adopt tax relief that would mitigate the cost of increased assessments. In the aftermath of Sandy, many homeowners engaged in extensive repair or reconstruction of their homes to repair damage. As a result of these repairs, assessments for many of these homeowners have increased substantially—even if the homeowners only restored their buildings to the condition existing prior to the storm.
The new law will provide tax abatements to offset assessment increases attributable to the storm. Additionally, local assessors would be prohibited from considering storm-related construction when determining taxable assessed value through 2020. The bill would take effect immediately.
Senator Michael Venditto, who sponsored S.5800, said: “It’s been three years, and many residents are still struggling to get back into their homes and on with their lives. Assemblyman Kaminsky and I, have in a bipartisan manner, worked together to get this bill passed in both houses. On behalf of all of our constituents, I would like to thank Governor Cuomo for signing this bill into law.”
—Submitted by the NYS Governor’s Office
