Add Art 6 §§601 - 603, Ins L; add §99-ss, St Fin L
Establishes the strengthen homes program to promote the strengthening of homes in order to protect against severe weather through remodeling grants and insurance discounts.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5874
SPONSOR: Hunter TITLE OF BILL:
An act to amend the insurance law and the state finance law, in relation
to establishing the strengthen homes program
PURPOSE:
To establish the strengthened homes program in the state of New York.
SUMMARY OF PROVISIONS:
Section 1: Amends the insurance law by adding a new article 6 to estab-
lish the Strengthen Homes Program to protect against severe weather. The
DFS Superintendent will administer the program and make financial grants
available to retrofit roofs of insurable property. Roofs would be
retrofitted to resist loss due to hurricanes, tornados or other
catastrophic wind events.
The superintendent will promulgate rules governing eligibility require-
ments for grants. Applicants will be accepted on a first come, first
served basis by income tiers established by the superintendent with
priority given to lower income applicants in areas more susceptible to
catastrophic wind events. Grantees shall obtain permits and pay for
required inspections. Additionally, the superintendent shall put forth
efforts to obtain funding from federal sources or other sources to
supplement appropriations made by the legislature. Implementation is
subject to the receipt of grants or funds and eligible contractors will
be subject to program requirements. Homes with completed retrofits will
be eligible for insurance premium discounts or other rate reduction in
accordance with DFS promulgated rules.
Section 2: Amends the state finance law by adding a new section 99-ss to
establish the Strengthen Homes Program Fund under the joint custody of
the Comptroller and the Commissioner of Taxation and Finance.
Section 3: Establishes effective date.
EXISTING LAW:
None
JUSTIFICATION:
Massive regional devastation is occurring with increasing frequency
within certain areas of the United States and in many regions throughout
the world. While communities grapple with the impact, a consensus is
beginning to emerge that we must change our approach to insurance poli-
cy. Traditionally, insurance prices in risk based on a myriad of
factors, including the loss history in the area where the policy is
being written. As the impacts of climate change become more acute,
however, risks are becoming harder to assess and pricing in the actual
anticipated risk after it is better established is becoming astronom-
ically expensive. In addition to pricing increased risk, insurers now
must incentivize mitigation and resilience.
First adopted in Alabama, the Strengthened Homes Program incentivizes
the construction of disaster resistant retrofits that mitigate loss.
The program encourages qualifying homeowners to contract with qualified
contractors to install retrofits made to disaster resistant specifica-
tions. A participating qualified homeowner will receive a grant. After
the retrofit is installed, the homeowner will then qualify for insurance
discounts.
This legislation was adopted as a model bill at the National Council of
Insurance Legislators (NCOIL) and is a beneficial policy for any state
with disaster risk.
LEGISLATIVE HISTORY:
None
FISCAL IMPLICATIONS:
To be determined.
LOCAL FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall become a law. Effective immediately, the addition, amendment and
slash or repeal of any rule or regulation necessary for the implementa-
tion of this act on its effective date are authorized to be made and
completed on or before such effective date.
