Assembly Bill A5073

2023-2024 Legislative Session

Prohibits mortgagees from requiring mortgagors of certain real property to purchase flood insurance exceeding certain limits

download bill text pdf

Sponsored By

Current Bill Status - Passed Senate & Assembly

  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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Bill Amendments

co-Sponsors

2023-A5073 - Details

See Senate Version of this Bill:
S7125
Law Section:
Real Property Law
Laws Affected:
Add §283, RP L
Versions Introduced in Other Legislative Sessions:
2019-2020: A4770, S4629
2021-2022: A4424, S4696

2023-A5073 - Summary

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.

2023-A5073 - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5073
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               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:
 
   Section  1.  The  real property law is amended by adding a new section
 283 to read as follows:
   § 283. LIMITS  TO  COMPULSORY  FLOOD  INSURANCE.  NO  MORTGAGEE  SHALL
 REQUIRE  A MORTGAGOR TO WHOM THE MORTGAGEE MAKES, INCREASES, EXTENDS, OR
 RENEWS ANY LOAN OR LINE OF CREDIT SECURED BY IMPROVED REAL  PROPERTY  TO
 PURCHASE OR PAY FOR FLOOD INSURANCE ON SUCH PROPERTY:  (1) AT A COVERAGE
 AMOUNT  THAT  EXCEEDS  THE  OUTSTANDING  MORTGAGE  THEREON;  OR (2) THAT
 INCLUDES COVERAGE FOR CONTENTS.  IN  EACH  INSTANCE  WHERE  A  MORTGAGEE
 REQUIRES  A  MORTGAGOR  TO  PURCHASE  OR PAY FOR FLOOD INSURANCE ON SUCH
 PROPERTY, THE MORTGAGEE SHALL PROVIDE NOTICE TO  THE  MORTGAGOR  OF  THE
 NEED TO PURCHASE OR PAY FOR FLOOD INSURANCE THAT STATES THE FOLLOWING IN
 CLEAR  AND  CONSPICUOUS  PRINT: 'PLEASE NOTE THAT THE FLOOD INSURANCE WE
 ARE REQUIRING YOU TO PURCHASE WILL ONLY PROTECT  YOUR  CREDITOR/LENDER'S
 INTEREST  IN  YOUR  PROPERTY.  IT  MAY NOT BE SUFFICIENT TO PAY FOR MANY
 NEEDED REPAIRS AFTER A FLOOD AND MAY NOT COMPENSATE YOU FOR YOUR  LOSSES
 IN  THE  PROPERTY  DUE TO THE FLOOD. IF YOU WISH TO PROTECT YOUR HOME OR
 INVESTMENT, YOU MAY WISH TO  PURCHASE  MORE  FLOOD  INSURANCE  THAN  THE
 AMOUNT WE ARE REQUIRING YOU TO BUY.'
   § 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

co-Sponsors

2023-A5073A (ACTIVE) - Details

See Senate Version of this Bill:
S7125
Law Section:
Real Property Law
Laws Affected:
Add §283, RP L
Versions Introduced in Other Legislative Sessions:
2019-2020: A4770, S4629
2021-2022: A4424, S4696

2023-A5073A (ACTIVE) - Summary

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.

2023-A5073A (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5073--A
                                                         Cal. No. 142
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 2, 2023
                                ___________
 
 Introduced  by  M.  of  A.  HUNTER, STECK, WALLACE, BUTTENSCHON, HAWLEY,
   ZEBROWSKI, McDONALD -- read once and  referred  to  the  Committee  on
   Judiciary   --  ordered  to  a  third  reading,  amended  and  ordered
   reprinted, retaining its place on the order of third reading

 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:
 
   Section  1.  The  real property law is amended by adding a new section
 283 to read as follows:
   § 283. LIMITS ON AMOUNT OF FLOOD INSURANCE REQUIRED BY MORTGAGEE.   NO
 MORTGAGEE  SHALL  REQUIRE  A  MORTGAGOR  TO  WHOM  THE  MORTGAGEE MAKES,
 INCREASES, EXTENDS, OR RENEWS ANY LOAN OR  LINE  OF  CREDIT  SECURED  BY
 IMPROVED  RESIDENTIAL  REAL PROPERTY TO PURCHASE OR PAY FOR FLOOD INSUR-
 ANCE ON SUCH RESIDENTIAL REAL PROPERTY:  (1) AT A COVERAGE  AMOUNT  THAT
 EXCEEDS  THE  OUTSTANDING PRINCIPAL MORTGAGE BALANCE AS OF THE BEGINNING
 OF THE YEAR FOR WHICH THE  POLICY  SHALL  BE  IN  EFFECT;  OR  (2)  THAT
 INCLUDES  COVERAGE  FOR  CONTENTS.  IN  EACH  INSTANCE WHERE A MORTGAGEE
 REQUIRES A MORTGAGOR TO PURCHASE OR PAY  FOR  FLOOD  INSURANCE  ON  SUCH
 RESIDENTIAL  REAL  PROPERTY,  THE  MORTGAGEE SHALL PROVIDE NOTICE TO THE
 MORTGAGOR AT THE TIME THE MORTGAGEE IS NOTIFIED OF THE NEED TO  PURCHASE
 OR  PAY  FOR  FLOOD  INSURANCE  THAT  STATES  THE FOLLOWING IN CLEAR AND
 CONSPICUOUS PRINT: 'PLEASE NOTE THAT THE FLOOD INSURANCE WE ARE  REQUIR-
 ING YOU TO PURCHASE WILL ONLY PROTECT YOUR CREDITOR OR LENDER'S INTEREST
 IN  YOUR  PROPERTY.  THE INSURANCE MAY NOT BE SUFFICIENT TO PAY FOR MANY
 NEEDED REPAIRS AFTER A FLOOD AND MAY NOT COMPENSATE YOU FOR YOUR  LOSSES
 IN  THE  PROPERTY  DUE TO THE FLOOD. IF YOU WISH TO PROTECT YOUR HOME OR
 INVESTMENT, YOU MAY WISH TO  PURCHASE  MORE  FLOOD  INSURANCE  THAN  THE
 AMOUNT WE ARE REQUIRING YOU TO BUY.'
   § 2. This act shall take effect immediately.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

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