Resolution calling upon the New York State Legislature to pass and the Governor to sign legislation limiting or prohibiting the use of out-of-state catastrophe losses to determine homeowners insurance premiums in New York State

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Res. No. 105 ..Title Resolution calling upon the New York State Legislature to pass and the Governor to sign legislation limiting or prohibiting the use of out-of-state catastrophe losses to determine homeowners insurance premiums in New York State ..Body By Council Members Morano, Louis, Banks, Salaam, Wong, Paladino, Vernikov and Ariola Whereas, Homeowners insurance is a form of financial protection that provides payment when a home is damaged or destroyed by fire, weather, or other covered disasters; and Whereas, The National Association of Insurance Commissioners states that homeowners insurance is important because, for many consumers, their home is their most valuable asset, and protecting its structure and contents is essential to housing stability and the economic security of homeowners; and Whereas, Homeowners insurance premiums are payments insured homeowners make at regular intervals to keep their insurance policies active; and Whereas, Homeowners insurance premiums have risen sharply in recent years, with the New York Times reporting that the typical household in the United States paid 33 percent more for home insurance in 2023 than in 2020, exceeding the inflation rate of 19 percent over the same period; and Whereas, In 2024 the Senate Budget Committee estimated that 67 percent of homes in the United States are either uninsured or underinsured due to the unaffordability of homeowners insurance; and Whereas, The Senate Budget Committee further found that climate-related events are contributing to rising homeowners insurance premiums nationwide; and Whereas, According to the New York Times, homeowners in states with lower risk of climate-related losses, including New York, are nevertheless experiencing increased homeowners insurance premiums linked to natural disasters in higher-risk states; and Whereas, The consideration of out-of-state losses in setting homeowners insurance rates can result in premiums that do not accurately reflect the actual risk of insured properties in New York, which may drive up insurance costs for New York residents; and Whereas, In New York City, homeowners insurance premiums have risen significantly in recent years, with the New York Times reporting that between 2018 and 2024, annual insurance costs increased by an average of 18 percent in Bronx county, 26 percent in Kings county, 2 percent in New York county, 20 percent in Queens county, and 23 percent in Richmond county; and Whereas, Moody's Analytics has found that rising homeowners insurance premiums also contribute to higher rental rates, as costs are passed from homeowners to tenants, with particularly severe impacts in cities with high rent-to-income ratios, including New York City; and Whereas, In a study of 130,000 affordable and mixed-income rental units in New York City, the New York Housing Conference found that rising homeowners insurance costs are contributing to increasing rents, with the average cost to insure an affordable apartment increasing by 103 percent between 2020 and 2024; and Whereas, Decoupling homeowners insurance rate-setting in New York from losses occurring outside of the State may result in premiums that more closely reflect risks specific to New York, could reduce homeowners insurance premium costs in New York City, and could decrease the cost of rent for tenants; and Whereas, Insurance rate-setting in New York is subject to state law and regulation by the Department of Financial Services; and Whereas, Subdivision a of section 2304 of the Insurance Law requires insurance rate-setting based, in part, on past and prospective losses both within and outside of the State; and Whereas, The New York State Legislature has the authority to amend the Insurance Law to clarify permissible rating factors, limit the consideration of out-of-state losses, and establish standards requiring that homeowners insurance rates be primarily based on risks within New York; now, therefore, be it Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass and the Governor to sign legislation limiting or prohibiting the use of out-of-state catastrophe losses to determine homeowners insurance premiums in New York State. HK LS # 20872 1/23/2026 11:35 AM 2

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