United Policyholders and other pro-consumer groups have been advocating for the New York State Legislature to pass a bad faith bill that allows for insureds who are successful in litigation against their insurance companies based on a claim denial to recover attorney’s fees.
New York is one of the least insured-friendly states in the nation, and as a Newsday article points out, insurance companies have taken advantage of this fact to pay out less in claims comparatively to other states with stronger consumer protections built into their laws. One would hope that the controversies surrounding Hurricane Sandy payouts at the expense of homeowners will serve as the impetus for change.
