Assemblyman Goldfeder Demands Accountability for Insurance Companies

January 14, 2013

In the wake of the devastating and unprecedented damage caused by Superstorm Sandy, Assemblyman Phil Goldfeder (D-Rockaway) sponsored legislation that would create the Homeowner’s Bill of Rights (A.2287) to protect families who were affected by the storm from the unconscionable deeds taken by insurance companies. This bill of rights would require insurers to provide property owners with an easy-to-understand disclosure notice detailing their coverage in the event of a catastrophic occurrence; how and when to file a claim; their rights if a claim is denied or a settlement offer is insufficient; and where and how to obtain coverage for catastrophic events.

The bill also directs the State Department of Financial Services to create a Consumer’s Guide on Insuring against Catastrophic Losses and requires insurance companies to inform property owners where they can obtain it so they can be better educated and understand their rights, noted Goldfeder.

“Almost 85 percent of my district including my own home and office were destroyed by Sandy and it is unacceptable that beleaguered home and business owners are stuck in limbo, unable to rebuild pending action by insurance companies,” said Assemblyman Goldfeder. “It is our sincere hope that these measures will create more informed insurance consumers and hasten recovery for communities like the ones in Southern Queens and Rockaway.”

Goldfeder also said that his office has received numerous calls and complaints from home and business owners detailing slow, incomplete and inadequate responses from insurers and in response the Assemblyman sponsored a second bill (A.1092) that would require insurance companies to promptly process claims resulting from storm damage. This legislation tightens the timeframe requirements for insurers to respond to claims resulting from disasters and emergencies. Under the measure, insurance companies would be required to begin investigating these settlement claims within six days, and notify property owners within 15 days as to whether their claim has been accepted or rejected, including their right to appeal if it has been rejected. If a claim has been accepted, insurers are required to pay it within three business days.

“It has been over two months since Sandy ripped through our community and while rate paying residents have been working hard to pick up the pieces and rebuild, it seems that insurers are not doing their part,” Assemblyman Phil Goldfeder said. “We should not have to wait weeks, months or years for an insurance company to process, approve, and pay for claims that will help rebuild our homes, businesses and lives.”

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