New legislation passed by the New York Assembly—and moving towards the Senate—may change the way storm claims are processed in the state, possibly forcing insurers to cover flood damage from the next storm.

Bill A 7455A outlaws anti-concurrent causation relating to flood, which would allow homeowners to receive payment for water or flood damage to a structure if they prove the water was let in due to previous wind or fire damage, said lawyers at Anderson Kill's 17th Annual Policyholder Advisor Conference in New York City.

"If anti-concurrent causation is ruled to not apply in New York State, it could mean billions of dollars paid to claimants," said Finley Harckham, a senior litigator and executive committee member for Anderson Kill. "It would apply to many claims such as we saw in Louisiana and Mississippi, where people's roofs were blown off, exposing their property to torrential rain."