Insurers and homeowners in
The new state mediation program handles real and personal property claims, other than those regarding damage to motor vehicles, which arose between
The new measure states that insurers must send notice to the claimant of the right to seek mediation when claims are denied. Notice must also be provided by insurers within 10 days after being notified of claimant’s decision to dispute any settlement offer. Notice also must be sent to claimants two days following the expiration of a 45-day period in which the insurer has not made a settlement offer. The mediation is not binding on homeowners, but insurers are responsible for the cost. “Mediation offers a speedy, low-cost resolution of insurance claims for homeowners who are unable to reach agreement with their homeowners’ insurance companies on claims from Storm Sandy,” Gov.
New York’s effort is similar to the nonbinding mediation programs in
The AAA will administer the
Early reaction from the insurance industry indicated a hope for success. “While we are currently reviewing the regulation, overall, mediation has worked well in other states and we are hopeful this will be the case in
Cuomo's office also noted most of the non-flood insurance claims related to Sandy already have been resolved. As of
New York’s effort to mediate Sandy claims is not the first.
The top five writers of homeowners multiperil in
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|Source:||A.M. Best Company, Inc.|