Regulators said they found that the company acted improperly "because the notice failed to advise the homeowner of the availability of coverage through the New York Property Insurance Underwriting Association (NYPIUA), the state's FAIR plan.

According to the department, State Farm's non-renewal notice also failed to provide contact information for the Coastal Market Assistance Program (C-MAP). C-Map is administered by NYPIUA to help homeowners obtain insurance in coastal areas.

The department said investigation of the individual homeowner's complaint led to the discovery that the same improper non-renewal notice had been sent to 112 other Long Islanders.

"The insurance department continues to monitor the situation on Long Island to make sure that insurance remains available and that the rules are followed when insurers reduce their exposure. Homeowners have specific rights when policies are non-renewed. Insurers must honor those rights by following the proper procedures," Insurance Superintendent James Wrynn said in a statement.

The department noted Long Island's susceptibility to coastal storms has led some larger insurers to reduce their exposure to potential losses by non-renewing some homeowners. It mentioned that under the law, insurers are permitted to non-renew up to 4 percent of their homeowners' policies annually on a statewide basis.

The department outlined the following steps insurers should take on non-renewals:

o Homeowners must be advised of the non-renewal between 45 and 60 days before the effective date to give them time to obtain a replacement policy.

o Notices sent to homeowners must state the specific reason the policy is not being renewed and must advise homeowners of NYPIUA and C-Map.

o Insurers are not required to send notices by registered mail, but they must maintain proof that the notice was mailed in a manner that satisfied the 45-to-60-day window.

Non-renewed policyholders were advised to shop for insurance by comparing the policies, coverage and premiums being offered by multiple insurers. The department noted that while some insurers have reduced their presence in coastal areas, a number of others have entered the market.

Mr. Wrynn advised homeowners to take advantage of insurance department resources by reviewing information on the Department's Web site http://www.ins.state.ny.us where they can also file complaints.