DFS action to expedite Tropical Storm Isaias-related insurance claims

DFS will allow temporary permits to be issued to qualified out-of-state independent insurance adjusters to expedite claims

Insurers expected to allow claimants to submit proof of claims by photographs and video recordings

Gov. Andrew Cuomo on Monday announced new action by the New York State Department of Financial Services to help expedite the payment of insurance claims for New Yorkers affected by Tropical Storm Isaias. As the storm moved through the eastern portion of the state, it caused numerous downed trees, localized flash flooding, and a peak of more than 920,000 power outages. Cuomo has declared a state of emergency to assist localities with storm response and cleanup missions.

To provide additional support to New York consumers impacted by Tropical Storm Isaias, DFS will allow temporary, expedited permits to be issued to qualified out-of-state independent insurance adjusters working on behalf of authorized insurers under New York Insurance Law. As insurers have reported large spikes in the number of storm-related claims being submitted, increasing the number of adjusters available to process these claims will help New Yorkers get their claim settlements paid and their property repaired faster.

"We know New Yorkers are tough, but they're also smart enough to ask for help when they need it and, in the wake of Tropical Storm Isaias, our friends and neighbors need all the support they can get," Cuomo said. "With many families and small businesses already experiencing financial hardship from the pandemic, it is critical that New Yorkers impacted by the storm are able to easily submit claims and quickly receive a resolution."

Department of Financial Services Superintendent Linda A. Lacewell said, "DFS expects the insurance industry to step up and expedite claim settlements, especially at a time when New York families and small businesses are being financially squeezed by the ongoing public health crisis and the economic impact of COVID-19. Regulated insurers must work with policyholders to settle claims promptly and this action helps to ensure this critical responsibility is fulfilled."

DFS expects insurers to:

√ Promptly process and investigate insurance claims made by claimants;

√ Allow claimants to provide as reasonable proof items such as: photographs or video recordings (without the need for a physical inspection); material samples, if applicable; inventories; and receipts for any repairs to or replacement of property; and

√ Allow claimants to make immediate repairs to damaged property if necessary to protect health or safety.

A press release said, “Claims adjusters should recognize that affected New York claimants may be limited in their ability to document claims due to the ongoing burdens of the COVID-19 pandemic, and assist all claimants with helpful information regarding emergency aid, tips for damage prevention, and resources for remediating damage.

“Insurers are reminded, in light of the recent increase in extreme weather and climate events, to maintain adequate New York-licensed independent adjuster staff to respond to these events. In addition, insurers should be mindful of New York state COVID-related travel restrictions when applying for temporary adjuster permits.”