Bill > A10176

This bill, known as the "New York Property Rehabilitation Protection Act," aims to prevent fraudulent practices by rehabilitation contractors using "assignment of benefit agreements." An assignment of benefit agreement is a contract where a property owner (the "assignor") transfers their rights to receive insurance payments (post-loss benefits) to a contractor (the "assignee") who performs repairs. The bill defines various terms, including "assignee," "assignment agreement," "assignor," "commercial property insurance," and "residential property insurance." Key provisions include that all such agreements must be in writing, executed between the assignor and assignee, and must have been entered into *before* January 1, 2027, as agreements made on or after that date will be invalid. The bill mandates that these agreements allow the assignor to cancel the contract without penalty within 14 days of signing, or under specific conditions related to work commencement, and requires the assignee to provide a detailed cost estimate and clearly inform the assignor of their rights, including the right to consult an attorney. Furthermore, the assignee must provide a copy of the agreement to the insurance company within three business days and is responsible for indemnifying the assignor against liabilities. The bill also outlines specific responsibilities for assignees in claims, including maintaining records, cooperating with insurers, and performing work to industry standards, and prohibits them from collecting payments beyond the policy deductible unless the homeowner agrees to additional work. Finally, the bill prohibits the assignment of any post-loss insurance benefit for policies issued on or after January 1, 2027, making any such attempts unlawful and void.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A10176