New York Governor Cuomo announced yesterday that homeowners will not have to pay hurricane deductibles on their claims.

A hurricane deductible is the amount of money a homeowner is responsible to pay for out-of-pocket before their insurance policy will kick in for hurricane related damage. Moreover, while traditional deductibles are generally flat dollar amounts for fire and theft (i.e. $5,000), with a hurricane deductible its often a percentage of the storm damage, which can be quite high (1% to 15%).

To read the Governor's press release, click here.

In answering this question, the first issue is if the damage is material to the contract or is instead merely ancillary. To illustrate, lost electric or a few shingle down is likely immaterial, whereas flooding with structural damage is typically material.

If material, the contract is unenforceable at the option of the purchaser (the seller has no option). In this scenario, if the purchaser does not want to pursue the contract and therefore does not want to close on the real estate transaction, the purchaser can have their deposit (Earnest Money) returned.

If immaterial, the contract is enforceable, but the purchaser has a right to an abatement (reduction) of the purchase price reflecting the damage.

Nonetheless, if there is a prepossession agreement and the purchaser is in possession, regardless if the damage is material, the contract is enforceable as is.

These are the default rules embodied in General Obligation Law 5-1311, but a contract of sale can be drafted to amend these rules however the parties agree. Therefore, it is imperative that you review your contract of sale before you act.

First, homeowners policies are all unique and must be read in their entirety. If you have any questions about your policy, you should contact an attorney rather than taking the word of your insurance company because they are not in the business of advocating for you and instead seek to minimize their payments / exposure.

Its important that you don't assume that you do or don't have coverage for a specific loss. There are many gray areas of coverage.

An important item to review in your insurance policy is if it pays Replacement Value or Cash Value for your damaged property.

Replacement Value refers to the cost to replace the property on the same premises with property of comparable material & quality.

Cash Value refers to the cost to replace with new property of like kind & quality, less depreciation.

To be clear, Replacement Value is much better for the insured than Cash Value as there is no depreciation taken into account when evaluating the homeowner's claim.

Next, you should check your deductible, take pictures of your losses, make a list of everything damaged / lost and promptly contact your insurance carrier to provide them with adequate notice (there are generally notice requirements to obtain your insurance coverage, including the way you provide notice and to whom).

While there are statewide laws for home improvement contracts & County / City laws, do not forget to also check your local municipality for their laws as well. Pursuant to General Business Law 775, local laws are permissible regulating home improvement contractors provided their are not inconsistent with State laws. So, a contractor may need to also be licensed on the local level. Additionally, there may be required contract provisions for your job.

While we have substantial damage from the storm throughout the region & need repairs, its important to ensure that these consumer protection statutes are followed by contractors along the way.

All home improvement contractors in Westchester County need to be licensed. To read the Laws Governing the Licensing of Home Improvement Contracts in Westchester County, click here.

To look up if a home improvement contractor is licensed in Westchester County, click here.

Remember, if your contractor is unlicensed, they cannot enforce your home improvement contract against you & they are subject to arrest & prosecution.

All home improvement contractors in New York City need to be licensed to perform the following services, among others:

construction, repair, remodeling, or addition to any land or building used as a residence. This includes, but is not limited to, the construction, replacement, or improvement of basements, driveways, fences, garages, landscaping, patios, porches, sidewalks, swimming pools, terraces, and other improvements to structures or upon land that is next to a home or apartment building. 

In New York City, there is also a license requirement called a Home Improvement Salesperson License for those who "solicit, negotiate, or offer to negotiate a home improvement contract with a property owner".

Click here to verify licensing in New York City.

Remember, if your contractor is unlicensed, they cannot enforce your home improvement contract against you & they are subject to arrest & prosecution. 

All home improvement contractors in Nassau County need to be licensed to perform the following services, among others:

• air conditioning & heating systems
• carpentry work
• ceramic tile & marble installers
• cesspool builders & cleaners
• chimney/fireplace builders, repairs, cleaners
• doors, windows, awnings
• dry wall contractors
• fences and railings
• fire escape stairs & ladders
• floor installation & refinishing (including sub-floors)
• garage builders
• general contractors
• insulation contractors
• lawn irrigation contractors
• masonry work
• painting contractors
• paving and driveway seal coating
• power washers & sandblasters
• reglazing/porcelain refinishing
• retaining wall contractors
• roofing contractors
• sewer cleaners
• siding installation
• swimming pool (building, installing and maintenance)
• tree surgery
• vacuum cleaner central systems
• waterproofing
• well drilling

Check your contractor's licensing & open complaints by contacting Office of Consumer Affairs at (516) 571-3871.  To view the Nassau County Local Law, click here. Remember  if your contractor is unlicensed, they cannot enforce your home improvement contract against you & they are subject to arrest & prosecution. 

All home improvement contractors in Suffolk County need to be licensed to perform the following services, among others:

Arborists	Awnings
Basements	Cabinet Makers
Carpentry	Driveways
Dormers	Extensions
Excavating	Flag Poles
Exterminating	Fumigation
Flooring	Insulation
Garages	Landscapers
Kitchens	Painting
Masonry	Roofing
Railings	Siding
Storms & Screens	Tree services
Swimming Pools	Tennis Courts
Termite Control	Tile Installers
Weatherproofing	Waterproofing

Check your contractor's licensing & open complaints by contacting Office of Consumer Affairs at (631) 853-4600. There are more than 12,000 licensed vendors, so you can certainly find one for your job. Remember, if your contractor is unlicensed, they cannot enforce your home improvement contract against you & they are subject to arrest & prosecution.

If you had damage in the storm & plan to hire a contractor in New York, we will be providing you with some tips & laws to get you on your way.

Lets start with General Business Law 771, which contains the requirements for home improvement contracts as follows: