NY Regulator Warns Insurers To Stop Illegal Cancellations Of Homeowner Policies When House Is Unoccupied Or In Foreclosure
- New York Department of Insurance has this advice for insurers in the Empire State: Stop canceling homeowners' policies simply because a house in unoccupied. That announcement came in the form a circular letter - essentially, an advisory bulletin to insurers - reiterating that cancellation of the policies solely on the basis of non-occupancy is illegal. The warning follows numerous complaints made to the department by consumers about cancellation notices.
- The circular letter also reiterated that insurers may not use the existence of a foreclosure action as a basis to cancel a homeowners' insurance policy, since filings do not constitute a willful or reckless act or omission or increase the hazard of an insured property.
For more, see New York Warns Insurers about Some Homeowners' Cancellations.