Tens of thousands of New York homeowners must find new property insurance providers. Here's why.
NEW YORK — Two property insurance companies are leaving the state of New York, meaning tens of thousands of homeowners must find new coverage fast. In parts of Long Island, that won't be so easy.
Adirondack Insurance Exchange and subsidiary Mountain Valley Indemnity are leaving the state by the end of 2024, asking customers to "identify options for replacement" now. The New York Department of Financial Services (DFS) is overseeing the exit.
"I believe that DFS is doing everything they can to try to make this work," said licensed insurance agent and broker Jason Bartow. "Unfortunately, I think this kind of came as a shock to everybody."
Adirondack Insurance Exchange sent CBS News New York the following statement:
"AIE has begun the process of winding down its insurance business and will no longer be providing insurance coverage after the end of the year. The company is engaged in an orderly wind down with the New York Department of Financial Services so individuals have time to find alternative coverage. Claims will continue to be covered while policies remain in force. We encourage customers to contact their independent agent now to identify options for replacement coverage. If your policy is cancelled prior to the expiration date, you will be issued a pro-rated refund for any paid premium covering the period after cancellation. We will be providing monthly communications to support the transition."
"Long Island represents a unique challenge for the insurance companies"
Bartow said those on the coast, like many Long Island homeowners, face a challenge.
"Long Island represents a unique challenge for the insurance companies," he said.
Bartow said more weather events have led to claims and losses; many insurers are spiking premiums and restricting business.
When record rainfall hit Suffolk County last week, Maryann Butkevich had minutes to get to safety.
"I raised my kids here. My home is gone," she said. "It's more than just the hot water heater and the burner and the electric."
CBS News New York spoke with many who wished they had flood coverage. For them, it's too late, but if you are filing a claim, do it fast.
"You want pictures of everything. Work with the adjuster, work with your insurance broker," Bartow said.
Also document all conversations you have with the insurance company and adjuster.
"We're taking out loans. That's how we're paying for it, we're taking out loans," Butkevich said.
The state is launching a program to help flood victims with no coverage recover.