The difficulties coastal property owners in New York are having obtaining homeowners’ insurance will be discussed at a hearing today (May 10).

Neil D. Breslin

The New York State Legislature will hold the meeting, convened by Assembly Insurance Committee Chairman Joseph D. Morelle (D-132nd District) and Senate Insurance Committee Chairman Neil Breslin (D-46th District), in Albany, where members of insurance companies and insurance trade groups are expected to testify.

The hearing will look at the reluctance of some insurance companies to write homeowners insurance in coastal areas, fearing the effects if a hurricane strikes the area. Companies have expressed concern about the potential for catastrophic levels of property insurance claims and the high cost of obtaining reinsurance for the risk.

Last month, another session involving Morelle and Breslin, legislators from the affected areas, insurance trade groups and several insurance agents from Long Island focused on the problems in the market and ideas for solutions.

The Independent Insurance Agents & Brokers of New York, a trade group representing nearly 1,800 agencies in the state, said it expects the meeting to explore the possibly creating one standard definition of an event that would cause large windstorm deductibles to apply to homeowners insurance claims. The group will also discuss how insurance companies are using the broader New York Property Insurance Underwriting Association policy, reform enacted in 2008, to make coverage more available. That reform authorized a coastal market assistance program, enabled NYPIUA to offer broadened coverage, and launched other initiatives to increase insurance availability.