Bill Text: NY S07125 | 2023-2024 | General Assembly | Amended
Bill Title: Prohibits mortgagees from requiring mortgagors of certain residential real property to purchase flood insurance exceeding a coverage amount that exceeds the balance as of the beginning of the year for which the policy shall be in effect, or that includes coverage for contents.
Spectrum: Bipartisan Bill
Status: (Introduced) 2024-06-05 - SUBSTITUTED BY A5073A [S07125 Detail]
Download: New_York-2023-S07125-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 7125--A 2023-2024 Regular Sessions IN SENATE May 18, 2023 ___________ Introduced by Sens. BRESLIN, PALUMBO -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary -- recommitted to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property law, in relation to prohibiting mort- gagees from requiring mortgagors of certain real property to purchase flood insurance exceeding certain limits The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The real property law is amended by adding a new section 2 283 to read as follows: 3 § 283. Limits on amount of flood insurance required by mortgagee. No 4 mortgagee shall require a mortgagor to whom the mortgagee makes, 5 increases, extends, or renews any loan or line of credit secured by 6 improved residential real property to purchase or pay for flood insur- 7 ance on such residential real property: (1) at a coverage amount that 8 exceeds the outstanding principal mortgage balance as of the beginning 9 of the year for which the policy shall be in effect; or (2) that 10 includes coverage for contents. In each instance where a mortgagee 11 requires a mortgagor to purchase or pay for flood insurance on such 12 residential real property, the mortgagee shall provide notice to the 13 mortgagor at the time the mortgagee is notified of the need to purchase 14 or pay for flood insurance that states the following in clear and 15 conspicuous print: 'Please note that the flood insurance we are requir- 16 ing you to purchase will only protect your creditor or lender's interest 17 in your property. The insurance may not be sufficient to pay for many 18 needed repairs after a flood and may not compensate you for your losses 19 in the property due to the flood. If you wish to protect your home or 20 investment, you may wish to purchase more flood insurance than the 21 amount we are requiring you to buy.' 22 § 2. This act shall take effect immediately. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07415-03-4
