Bill Text: NY A04770 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Prohibits mortgagees from requiring mortgagors of certain real property to purchase flood insurance exceeding a coverage amount that exceeds the outstanding mortgage thereon, or that includes coverage for contents.

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Engrossed - Dead) 2020-12-28 - RECOMMITTED TO RULES [A04770 Detail]

Download: New_York-2019-A04770-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          4770
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 5, 2019
                                       ___________
        Introduced by M. of A. HUNTER -- read once and referred to the Committee
          on Judiciary
        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  to  compulsory  flood  insurance.  No mortgagee shall
     4  require a mortgagor to whom the mortgagee makes, increases, extends,  or
     5  renews any loan secured by improved real property to purchase or pay for
     6  flood insurance on such property:  (1) at a coverage amount that exceeds
     7  the  outstanding  mortgage  thereon;  (2)  that  includes  coverage  for
     8  contents; or (3) that includes a  deductible  less  than  five  thousand
     9  dollars.  In  each  instance  where  a mortgagee requires a mortgagor to
    10  purchase or pay for flood insurance  on  such  property,  the  mortgagee
    11  shall provide notice to the mortgagor of the need to purchase or pay for
    12  flood  insurance  that  states  the  following  in clear and conspicuous
    13  print: 'Please note that the flood insurance we  are  requiring  you  to
    14  purchase will only protect your creditor/lender's interest in your prop-
    15  erty.  It  may  not be sufficient to pay for many needed repairs after a
    16  flood and may not compensate you for your losses in the property due  to
    17  the  flood. If you wish to protect your home or investment, you may wish
    18  to purchase more flood insurance than the amount we are requiring you to
    19  buy.'
    20    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06962-01-9