NEW YORK - The New York State Insurance Department today announced that it has directed two insurance companies, Homesite Insurance Company and Security Mutual Insurance Company, to offer to reinstate 260 homeowners' policies across the state.

The Insurance Department took the action after finding that the insurers had improperly cancelled or non-renewed the policies. The action followed an inquiry begun when four of the homeowners filed complaints with the Department.

"This proves that individual consumers can make a difference. Every year, the Department closes more than 60,000 cases brought to us by consumers. The Department investigates these complaints and will act to make sure that legitimate complaints are resolved on behalf of consumers," Insurance Superintendent James Wrynn said.

The Insurance Department reversed decisions by Homesite and Security Mutual canceling policies on some unoccupied homes and coastal area homes, and for premature non-renewal of other policies.

The terminations involving unoccupied homes came to light when a homeowner north of Watertown in Jefferson County complained that her Security Mutual policy was cancelled while she was in the process of relocating.

Under the Insurance Law, an insurer may not consider non-occupancy as the sole factor in issuing a mid-term cancellation. Non-occupancy may be considered only if it is among other factors that increase risk to a property.

Also reversed was a decision by Homesite to terminate 174 other homeowners' policies. The terminations were deemed improper because the homeowners failed to receive, as required by law, information about the availability of coverage through the New York Property Insurance Underwriting Association (NYPIUA). Some of the termination notices also failed to include information about C-MAP, a program designed to help homeowners obtain insurance in coastal areas.