New York Homeowners Insurance and Recent Limitations on Pet Exclusions

New York Homeowners Insurance and Recent Limitations on Pet Exclusions

The New York legislature recently passed several bills affecting whether and how providers of homeowners insurance can address pet ownership in their policies. Specifically, Governor Hochul signed a law limiting the right of insurance companies to refuse or adjust policies based on a policyholder’s dogs. While the original bill, as drafted, appeared to affect only underwriting functions, the law was recently amended to clarify that claims are affected as well.

Continue reading to learn about the recent amendments to New York’s Insurance Law. For help defending against overbroad claims for coverage, call a zealous New York insurance coverage defense attorney for advice and representation.

Section 3421 and Protections for Dog Owners

On October 30, 2021, New York Governor Kathy Hochul signed into law Senate Bill S4254 / Assembly Bill A4075. The bill added section 3421 to the New York Insurance Law. Pursuant to section 3421, New York homeowners insurance policies “issued, renewed, modified, altered or amended on or after” January 28, 2022, are no longer permitted to discriminate based on the policyholder’s dogs.

Specifically, with regard to covered homeowners’ insurance policies, the new section states that “no insurer shall refuse to issue or renew, cancel, or charge or impose an increased premium or rate for such policy or contract based solely upon harboring or owning any dog of a specific breed or mixture of breeds.” As written, the law appeared to cover only underwriting functions; the law did not make any reference to claims, limitations of coverage, or exclusion of coverage relating to dog or other animal ownership.

Section 3421 includes an exception for dogs designated as a “dangerous dog” under section 123 of the Agriculture & Markets Law. Insurers may still refuse to issue, renew, etc. a policy should a policyholder harbor or own a designated dangerous dog. A dog may be designated as dangerous regardless of breed or mixture of breeds. Insurers must utilize “sound underwriting and actuarial principles reasonably related to actual or anticipated loss experience subject to the applicable provisions” of the dangerous dog law.

2023 Amendments to Section 3421

Perhaps realizing that section 3421 failed to account for claims functions, the law was amended in late 2022. Effective March 15, 2023, section 3421 was expanded to account for claims and exclusions of coverage for policyholders who own dogs.

As amended, Section 3421 now reads:

With respect to homeowners’ insurance policies . . . no insurer shall refuse to issue or renew, cancel, or charge or impose an increased premium or rate for such policy or contract, or exclude, limit, restrict, or reduce coverage under such policy or contract based solely upon harboring or owning any dog of a specific breed or mixture of breeds. (emphasis added)

For new policies issued, renewed, etc. in 2023 and beyond, homeowners’ insurance providers are not allowed to refuse to issue policies, raise premiums, or limit coverage based solely on the policyholder’s harboring or owning of a dog of a specific breed or mixture of breeds. Section 3421 still permits homeowners’ insurance providers to limit coverage based on designated dangerous dogs.

For guided, experienced legal assistance with a New York insurance defense, toxic tort, or products liability claim, contact the Islip offices of Richard A. Fogel at 516-721-7161.