Bill Text: NY A05073 | 2023-2024 | 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 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: Moderate Partisan Bill (Democrat 6-1)

Status: (Engrossed) 2024-06-05 - RETURNED TO ASSEMBLY [A05073 Detail]

Download: New_York-2023-A05073-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5073

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                      March 2, 2023
                                       ___________

        Introduced  by  M.  of A. HUNTER, STECK, WALLACE, BUTTENSCHON, HAWLEY --
          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 or line of credit secured by improved real  property  to
     6  purchase or pay for flood insurance on such property:  (1) at a coverage
     7  amount  that  exceeds  the  outstanding  mortgage  thereon;  or (2) that
     8  includes coverage for contents.  In  each  instance  where  a  mortgagee
     9  requires  a  mortgagor  to  purchase  or pay for flood insurance on such
    10  property, the mortgagee shall provide notice to  the  mortgagor  of  the
    11  need to purchase or pay for flood insurance that states the following in
    12  clear  and  conspicuous  print: 'Please note that the flood insurance we
    13  are requiring you to purchase will only protect  your  creditor/lender's
    14  interest  in  your  property.  It  may not be sufficient to pay for many
    15  needed repairs after a flood and may not compensate you for your  losses
    16  in  the  property  due to the flood. If you wish to protect your home or
    17  investment, you may wish to  purchase  more  flood  insurance  than  the
    18  amount we are requiring you to buy.'
    19    § 2. This act shall take effect immediately.


         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07415-01-3