Bill Text: NY S04696 | 2021-2022 | General Assembly | Introduced

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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 3-0)

Status: (Introduced - Dead) 2021-05-26 - SUBSTITUTED BY A4424 [S04696 Detail]

Download: New_York-2021-S04696-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          4696

                               2021-2022 Regular Sessions

                    IN SENATE

                                    February 9, 2021
                                       ___________

        Introduced  by  Sens.  BRESLIN,  ADDABBO,  MAY -- read twice and ordered
          printed, and when printed to be committed to the Committee on  Judici-
          ary

        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.
                                                                   LBD05679-01-1