New York State Seal
STATE OF NEW YORK
INSURANCE DEPARTMENT
25 BEAVER STREET
NEW YORK, NEW YORK 10004

The Office of General Counsel issued the following opinion on October 23, 2002, representing the position of the New York State Insurance Department.

RE: Homeowner’s Liability Coverage on Secondary Residence Located in a State where the Insurer is not Licensed

Question Presented:

Under the New York Insurance Law, is an insurer required to add an endorsement to a homeowner’s insurance policy that extends liability insurance coverage to a secondary residence located in a state where the insurer is not licensed?

Conclusion:

Nothing in the New York Insurance Law requires an insurer to add an endorsement to a homeowner’s insurance policy that extends liability insurance coverage to a secondary residence located in a state where the insurer is not licensed. However, the insurer is not prohibited from doing so, but may be subject to the laws of the other state.

Facts:

An insured has a secondary residence located in Florida and would like the insurer to add an endorsement to a homeowner’s insurance policy that extends liability insurance coverage to this residence. The insured is willing to pay an additional premium for such coverage. The insurer, who is authorized to do business in New York, has refused to add the endorsement on the ground that it is not licensed to do business in Florida.

Analysis:

Nothing in the New York Insurance Law requires an insurer to add an endorsement to a homeowner’s insurance policy that extends liability insurance coverage to a secondary residence located in a state where the insurer is not licensed. However, the insurer is not prohibited from doing so. The Department has previously opined that generally an insurer that is authorized to do business in New York may extend coverage to out of state exposures even if it is not licensed in that state. The insurer may be subject to the laws of the other state. See Office of General Counsel opinion dated January 24, 2002.

For further information, you may contact Attorney Pascale Joasil at the New York City office.