New York Senator Mark Walczyk has introduced a new bill aimed at helping residents and businesses around Lake Ontario better understand flood insurance. This area has faced significant flooding in the past, making awareness of insurance options crucial.
The proposed Senate Bill 7391 seeks to change state insurance laws by requiring the New York Department of Financial Services (DFS) to publish an annual notice in local newspapers. This notice will provide important information about how flood insurance differs from standard homeowners or renters insurance. Many people may not realize that typical policies do not cover flood damage, which is why this bill is so important.
The annual notice will include the DFS’s disaster hotline, contact information, and a link to their online resource center for disaster and flood information. It will clearly state that homeowners and renters insurance generally does not cover flood-related damages, stressing the need for separate flood insurance through the National Flood Insurance Program.
Additionally, the notice will inform property owners and businesses about resources available for issues like insurance claims, hurricane and wind deductibles, and policy cancellations. It will also cover coverage for living expenses for those displaced by disasters.
For businesses, the bill promises to provide specific information about business interruption insurance and off-premises service interruption coverage. This clarity will help business owners understand their options in case of disasters.
Senator Walczyk’s bill has been sent to the Senate Insurance Committee for review. If it passes, it will take effect immediately, reflecting New York State’s commitment to proactive communication and preparedness in flood-prone areas. This initiative could make a significant difference for many residents and businesses as they prepare for potential flooding in the future.