Senate Bill S7125

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 Via A5073 - Passed Senate

  • 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-S7125 - Details

Law Section:
Real Property Law
Laws Affected:
Add §283, RP L
Versions Introduced in Other Legislative Sessions:
2019-2020: S4629
2021-2022: S4696

2023-S7125 - 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-S7125 - Sponsor Memo

2023-S7125 - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7125
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               May 18, 2023
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed 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-S7125A (ACTIVE) - Details

Law Section:
Real Property Law
Laws Affected:
Add §283, RP L
Versions Introduced in Other Legislative Sessions:
2019-2020: S4629
2021-2022: S4696

2023-S7125A (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-S7125A (ACTIVE) - Sponsor Memo

2023-S7125A (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7125--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               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:
 
   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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