Offering of Loss Mitigation Tools and Services and Discounts for Loss Mitigation Devices and Systems

How it works

This 2024 DFS circular letter encourages all insurers authorized to write property/casualty insurance in New York to offer loss-mitigation tools and services to insureds for free or for a reduced fee. It also encourages insurers, the New York Property Insurance Underwriting Association, and rate service organizations to file actuarially appropriate discounts for devices or systems that mitigate or prevent losses.

What the money covers

The circular letter gives examples of tools and devices such as smart water monitors and shutoff devices, smoke alarms, sprinkler systems, fire extinguishers, and deadbolt locks. It is broad and not limited to one peril.

Amounts and matching

The circular letter does not set a required dollar amount, percentage discount, or matching rule. It is a guidance document encouraging filings and offerings.

How to apply

The circular letter is addressed to insurers and rate service organizations, not directly to homeowners. Homeowners would need to ask their insurer whether a device or service is offered or discounted.

Timing and deadlines

The circular letter is dated May 23, 2024. It does not state an end date or application deadline.