Roofing Insurance Laws in New York

Informational only — not legal advice. Laws and case precedent change, and outcomes depend on your specific policy language. Verify current law with your state Department of Insurance or a qualified attorney before relying on it.

Can insurers depreciate labor when calculating ACV?

Unsettled

New York has no statute, regulation, or DFS bulletin on depreciating labor. Your policy's definition of actual cash value controls, and New York courts measure ACV under the broad evidence rule. Expect carriers to depreciate labor on ACV settlements unless the policy language says otherwise.

Authority

New York measures actual cash value under the broad evidence rule: McAnarney v. Newark Fire Ins. Co., 247 N.Y. 176, 159 N.E. 902 (1928). No New York appellate decision addresses labor depreciation. The nearest case, Mazzocki v. State Farm Fire & Cas. Co., 1 A.D.3d 9, 766 N.Y.S.2d 719 (3d Dep't 2003), concerns general contractor overhead and profit, not labor. DFS OGC Opinion No. 08-10-12 addresses replacement cost and ACV payment without reaching labor depreciation.

Mazzocki v. State Farm Fire & Cas. Corp. (N.Y. App. Div. 3d Dep't 2003) — FindLaw · NY DFS OGC Opinion No. 08-10-12 — Replacement cost / ACV payment

Must insurers replace undamaged materials so the repair matches?

Unsettled

New York has no matching, line-of-sight, or uniform-appearance rule for property claims. A carrier owes no duty to replace undamaged slopes or panels for cosmetic uniformity; the policy language controls. On a replacement cost policy, the argument is that a non-matching patch fails to restore the roof to its pre-loss condition.

Authority

11 NYCRR § 216.6 defines actual cash value as the lesser of repairing the property to its condition immediately prior to the loss or replacing it with an item substantially identical to the item damaged. It imposes no obligation to replace undamaged materials for appearance. The only matching-quality standard in Regulation 64 is 11 NYCRR § 216.7, and it is limited to motor vehicle physical damage claims and crash parts. N.Y. Insurance Law § 2601, the unfair claim settlement practices statute, contains no matching provision. No New York appellate decision establishes a property matching doctrine.

11 NYCRR § 216.6 - Standards for prompt, fair and equitable settlements (ACV definition) (Cornell LII) · 11 NYCRR § 216.7 - Standards for settlement of motor vehicle physical damage claims (matching limited to auto crash parts) (Cornell LII) · N.Y. Insurance Law § 2601 - Unfair claim settlement practices (NY Senate) · 11 NYCRR Part 216 (Regulation 64) full text (Cornell LII)

Can a contractor pay or waive the homeowner's deductible?

Prohibited

New York bans roofing contractors from paying, rebating, or discounting a homeowner's insurance deductible, and bans advertising or promising to do it. The ban reaches allowances, discounts against your fee, and any compensation, gift, prize, bonus, coupon, credit, or referral fee paid to the insured or anyone associated with the property. Bill the carrier the price you actually charge and collect the deductible.

You may

Bill the carrier the price you actually intend to collect
Collect the full deductible from the homeowner
Offer a payment plan so the homeowner pays the deductible over time
Refer the homeowner to third-party financing for their out-of-pocket share
State in writing that the deductible is the homeowner's responsibility

You may not

Pay, absorb, or rebate any part of the deductible
Advertise or promise to cover the deductible
Run "no out-of-pocket cost" or "free roof" pitches tied to a claim
Grant an allowance or discount against your fee to offset the deductible
Give the insured a gift, prize, bonus, coupon, credit, or referral fee
Pay anyone associated with the property to induce the sale

Penalty: Article 36-A carries no standalone criminal penalty; enforcement runs through the Attorney General and as a deceptive practice under GBL § 349.

Authority

N.Y. Gen. Bus. Law § 771-b(2) provides that a roofing contractor shall not advertise or promise to pay or rebate all or any portion of any insurance deductible as an inducement to the sale of goods or services, and defines that promise to include granting any allowance, offering any discount against the fees charged, or paying the insured or anyone associated with the property any compensation, gift, prize, bonus, coupon, credit, or referral fee. The section sits in Article 36-A (Home Improvement Contracts), added by 2019 N.Y. Laws ch. 550 (S1405 / A7531), signed Nov. 25, 2019 and effective 180 days later. The general anti-rebating provision is Insurance Law § 2324.

NY Senate — GBS § 771-B (official statute text) · NY Senate Bill S1405 (2019), ch. 550 — enacting legislation · NY Insurance Law § 2324 — Rebating and Discrimination

Can a contractor negotiate the homeowner's claim?

Prohibited

New York bars a roofing contractor from reporting, adjusting, or negotiating a claim on the owner's behalf, and from taking compensation for referring the owner to someone who does. You may work your own estimate; you may not work their claim. Inspect, document, write and sign your scope and supplements for the work you will perform, and explain them to the homeowner, who submits and negotiates the claim.

You may

Inspect the roof and document the damage
Write and sign your own scope, estimate, or supplement for your work
Give the estimate to the homeowner to submit
Tell the homeowner the damage appears storm-related and covered
Recommend the homeowner file a claim
Walk the homeowner through where the carrier's estimate falls short
Attend the insurer's inspection and answer the adjuster's questions
Tell the homeowner to request a reinspection or hire a licensed public adjuster

You may not

Report, adjust, or negotiate the claim on the owner's behalf
Advocate to the carrier for the insured
Initiate contact with the adjuster to press the settlement
Charge any fee for dealing with the insurer
Take compensation for referring the owner to a public adjuster or claim service
Hold yourself out as handling the homeowner's insurance claim

Penalty: Negotiating settlement for the insured without a license is a misdemeanor under Ins. Law § 109(a) plus a civil penalty up to $500 per transaction under § 2102(g); GBL § 773 adds Article 36-A civil penalties up to $100 per violation generally, and the greater of $250 or 5% of the contract price capped at $2,500 for contract and escrow violations, on top of local home improvement license discipline.

Authority

N.Y. Gen. Bus. Law § 771-b(8) provides that a roofing contractor shall not perform the reporting, adjusting, or negotiating a claim on behalf of the owner and shall not receive compensation for the referral to any entity that does, and that nothing prevents the contractor from communicating with an insurance company representative and sharing technical knowledge when the insurer initiates the communication. N.Y. Ins. Law § 2101(g)(2) defines a public adjuster as any person who, for money, commission, or any other thing of value, acts or aids in any manner on behalf of an insured in negotiating for or effecting the settlement of a property claim. The exemptions cover insurer representatives, attorneys, and certain licensed brokers; there is no contractor exemption. Section 2102(a)(1) prohibits acting as an adjuster without a license. The permitted acts above track NYSDFS OGC Opinion No. 08-04-28 (Apr. 28, 2008), which allows a storm-damage roofer to give damage assessments and repair estimates, opine on whether damage is covered, recommend the insured file a claim, attend the insurer's inspection, point out discrepancies between estimates, and be paid out of insurance proceeds without a separate fee, but requires the contractor to limit communications with the insurer to responding to questions the insurer poses and bars advocating on behalf of the insured. OGC Opinion No. 11-08-03 is cited here only for the § 2102(g) and § 109(a) penalties; its facts concern personal injury representation.

N.Y. Gen. Bus. Law § 771-b — Responsibilities of roofing contractors (NY Senate, official statute text) · N.Y. Ins. Law § 2101 — Definitions, incl. (g)(2) public adjuster (NY Senate) · N.Y. Ins. Law § 2102 — License requirement (a)(1) and $500/transaction penalty (g) (NY Senate) · N.Y. Ins. Law § 109 — Violations are misdemeanors (NY Senate) · N.Y. Gen. Bus. Law § 773 — Article 36-A civil penalties (NY Senate) · NYSDFS OGC Opinion No. 08-04-28 — Construction Company Acting as a Public Adjuster · NYSDFS OGC Opinion No. 11-08-03 — Acting as a Public Adjuster Without a License (penalties) · NYSDFS — Adjusters, Appraisers & Umpires (consumer guidance on public adjuster licensing)

New Mexico Compare all states North Carolina

Make sure the New York claim pays what it should

ClaimSpark checks depreciation, matching, and scope against what the job requires — and supplements when the carrier comes up short.

Start Free