NY State Senate Bill 2021-S7640

Senate Bill S7640

2021-2022 Legislative Session

Requires homeowners insurance policies to include coverage of residential solar power systems

download bill text pdf

Archive: Last Bill Status - In Senate Committee Insurance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to insurance

2021-S7640 (ACTIVE) - Details

Current Committee:: Senate Insurance
Law Section:: Insurance Law
Laws Affected:: Add §3425-a, Ins L

2021-S7640 (ACTIVE) - Summary

Requires homeowners insurance policies to include coverage of residential solar power systems; requires insurers to notify policyholders of such available coverage; permits insurers to impose a reasonable premium or increased rate for coverage of residential solar power systems.

2021-S7640 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7640

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the insurance law, in relation to requiring homeowners
insurance policies to include coverage of residential solar power
systems

 
PURPOSE:

The purpose of this bill is to further incentivize homeowners to consid-
er a renewable energy source like solar panels for their electricity
demands by ensuring that both rooftop solar power systems and ground-
mounted arrays on residential properties be included in homeowners
insurance without requiring a separate rider.

 
SUMMARY OF PROVISIONS:

A new section 3425-a is added to the insurance law to require that
insurers include coverage of residential solar power systems with a
capacity less than 25 kilowatts, whether rooftop or ground-mounted

arrays. Further, homeowners policy holders are to be notified of this
solar power system coverage upon renewal of any policy already in exist-
ence.

 
JUSTIFICATION:

Homeowners are increasingly opting to incorporate renewable energy
installations into their existing electrical systems, and the state has
incentivized this option through varied programs offering tax credits
and rebates. While considered "permanent structures" by insurance compa-
nies, solar power systems are vulnerable to extreme wind and other
weather events and can suffer extensive damage warranting claims under
homeowners policies for repair and/or replacement outside of normal
warranty provisions.

This legislation will make homeowners secure in the knowledge that
insurance coverage will not be an impediment to choosing solar power
installations at their homes.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:

None

 
EFFECTIVE DATE:
90 days after becoming law and shall apply to all policies issued,
renewed, modified, altered or amended on or after such effective date.

2021-S7640 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7640
 
                             I N  S E N A T E
 
                              January 5, 2022
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Insurance
 
 AN ACT to amend the insurance law, in relation to  requiring  homeowners
   insurance  policies  to  include  coverage  of residential solar power
   systems
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The insurance law is amended by adding a new section 3425-a
 to read as follows:
   §  3425-A.  HOMEOWNERS  INSURANCE; RESIDENTIAL SOLAR POWER SYSTEMS. 1.
 FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   (A)  "HOMEOWNERS  INSURANCE"  MEANS SUCH HOMEOWNERS INSURANCE POLICIES
 DEFINED IN SUBSECTION (A) OF SECTION TWO THOUSAND THREE  HUNDRED  FIFTY-
 ONE OF THIS CHAPTER.
   (B)  "RESIDENTIAL  SOLAR  POWER  SYSTEM"  MEANS A PHOTOVOLTAIC SYSTEM,
 COMPRISING OF SOLAR ELECTRIC GENERATING EQUIPMENT, INSTALLED ON A  ROOF-
 TOP OR AS A GROUND-MOUNTED ARRAY, WITH A RATED CAPACITY OF NOT MORE THAN
 TWENTY-FIVE KILOWATTS, AND THAT IS MANUFACTURED, INSTALLED, AND OPERATED
 IN ACCORDANCE WITH APPLICABLE GOVERNMENT AND INDUSTRY STANDARDS.
   2.  WITH  RESPECT  TO  HOMEOWNERS INSURANCE POLICIES, AN INSURER SHALL
 INCLUDE IN SUCH POLICY OR CONTRACT, COVERAGE OF  ANY  RESIDENTIAL  SOLAR
 POWER  SYSTEM  LOCATED  ON  THE  REAL PROPERTY COVERED BY SUCH POLICY OR
 CONTRACT. UPON RENEWAL OF ANY HOMEOWNERS INSURANCE  POLICY  OR  CONTRACT
 ALREADY IN EXISTENCE UPON THE EFFECTIVE DATE OF THIS SECTION, THE INSUR-
 ER  SHALL  NOTIFY  THE  INSURED  OF THE AVAILABILITY OF SUCH RESIDENTIAL
 SOLAR POWER SYSTEM COVERAGE.
   3. THE PROVISIONS OF THIS SECTION SHALL NOT PROHIBIT AN  INSURER  FROM
 IMPOSING A REASONABLY INCREASED PREMIUM OR RATE FOR COVERAGE OF RESIDEN-
 TIAL  SOLAR  POWER  SYSTEM  AS  PART OF A HOMEOWNERS INSURANCE POLICY OR
 CONTRACT.
   § 2. This act shall take effect on the ninetieth day  after  it  shall
 have become a law and shall apply to all policies issued, renewed, modi-
 fied, altered or amended on or after such effective date.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13312-01-1

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