NY State Senate Bill 2019-S4629A

Senate Bill S4629A

2019-2020 Legislative Session

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

download bill text pdf

Archive: Last Bill Status Via A4770 - In Senate Committee

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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 28, 2020	recommitted to rules vote reconsidered - restored to third reading substitution reconsidered
Jul 21, 2020	3rd reading cal.146 substituted for s4629a
Jul 21, 2020	substituted by a4770a
Jan 21, 2020	advanced to third reading
Jan 15, 2020	2nd report cal.
Jan 14, 2020	1st report cal.146
Jan 08, 2020	referred to judiciary returned to senate died in assembly
Jun 19, 2019	referred to judiciary delivered to assembly passed senate ordered to third reading cal.1769 committee discharged and committed to rules
May 03, 2019	print number 4629a
May 03, 2019	amend and recommit to judiciary
Mar 18, 2019	referred to judiciary

Votes

- Jun 19, 2019 - Floor Vote
  S4629A
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 19, 2019
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Antonacci
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Jacobs
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
  Jun 19, 2019 - Rules Committee Vote
  S4629A
  
  19
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 19, 2019
      
      aye (19)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      Parker
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
  Jan 14, 2020 - Judiciary Committee Vote
  S4629A
  
  15
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Judiciary Committee Vote: Jan 14, 2020
      
      aye (15)
      
      Bailey
      
      Boyle
      
      Breslin
      
      Gounardes
      
      Hoylman-Sigal
      
      Kaplan
      
      LaValle
      
      Lanza
      
      Myrie
      
      O'Mara
      
      Ranzenhofer
      
      Savino
      
      Sepúlveda
      
      Stavisky
      
      Thomas

Bill Amendments

Original

A (Active)

2019-S4629 - Details

See Assembly Version of this Bill:: A4770
Law Section:: Real Property Law
Laws Affected:: Add §283, RP L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S4696, A4424
2023-2024: S7125, A5073

2019-S4629 - Summary

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.

2019-S4629 - Sponsor Memo

                                
 
BILL NUMBER: S4629

SPONSOR: BRESLIN
 
TITLE OF BILL:  An act to amend the real property law, in relation to
prohibiting mortgagees from requiring mortgagors of certain real proper-
ty to purchase flood insurance exceeding certain limits

 
PURPOSE:

To expand the current real property law to include requirements to
produce notice between mortgagee and mortgagor on the minimal purchase
needed for compulsory flood insurance.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill adds a new subsection (c-1) of section 283 of the
Real Property Law.

Section two provides that this act shall take effect immediately after
enactment.

 
JUSTIFICATION:

This bill would limit a homeowner's requirements when purchasing compul-
sory flood insurance and provide notice of the minimum insurance liabil-
ity that is required. The homeowner is not required by law to buy flood
insurance that exceeds the outstanding amounts owed to the bank or
covers content within the home. The deductibles required also may not be
less than $5,000. This transparency ensures homeowners are not burdened
by additional coverage by insurance companies and banks when mandated to
purchase flood insurance.

Additionally, in notifying the homeowner of minimum flood insurance
requirements, the notice would include a statement informing the home-
owner that minimum flood insurance only covers the bank's interest and
may not cover the full value of the home or the belongings inside. Home-
owners are encouraged to purchase additional insurance if they desire
greater coverage.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Effective immediately it shall become law.

2019-S4629 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4629
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 18, 2019
                                ___________
 
 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 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;  (2)  THAT  INCLUDES  COVERAGE  FOR
 CONTENTS;  OR  (3)  THAT  INCLUDES  A DEDUCTIBLE LESS THAN FIVE THOUSAND
 DOLLARS. 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 PROP-
 ERTY. 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.
                                                            LBD06962-01-9

co-Sponsors

2019-S4629A (ACTIVE) - Details

See Assembly Version of this Bill:: A4770
Law Section:: Real Property Law
Laws Affected:: Add §283, RP L
Versions Introduced in Other Legislative Sessions:: 2021-2022: S4696, A4424
2023-2024: S7125, A5073

2019-S4629A (ACTIVE) - Summary

2019-S4629A (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4629A

SPONSOR: BRESLIN
 
TITLE OF BILL:  An act to amend the real property law, in relation to
prohibiting mortgagees from requiring mortgagors of certain real proper-
ty to purchase flood insurance exceeding certain limits

 
PURPOSE:

To expand the current real property law to include requirements to
produce notice between mortgagee and mortgagor on the minimal purchase
needed for compulsory flood insurance.

 
SUMMARY OF PROVISIONS:

Section 1 of the bill adds a new subsection (c-1) of section 283 of the
Real Property Law.

Section two provides that this act shall take effect immediately after
enactment.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

The bill has been amended to remove language regarding a high deductible
flood insurance option. The Homeowner Flood Insurance Affordability Act
of 2014 (HFIAA), effective April 2015, provides optional high-deductible
policies for residential properties. Section 12 of HFIAA introduced a
new deductible option of $10,000. The HFIAA also made disclosure of this
policy option mandatory on flood insurance applications. With this
already enacted, the deductible language is not necessary.

 
JUSTIFICATION:

This bill would limit a homeowner's requirements when purchasing compul-
sory flood insurance and provide notice of the minimum insurance liabil-
ity that is required. The homeowner is not required by law to buy flood
insurance that exceeds the outstanding amounts owed to the bank or
covers content within the home. This transparency ensures homeowners are
not burdened by additional coverage by insurance companies and banks
when mandated to purchase flood insurance.

Additionally, in notifying the homeowner of minimum flood insurance
requirements, the notice would include a statement informing the home-
owner that minimum flood insurance only covers the bank's interest and
may not cover the full value of the home or the belongings inside.
Homeowners are encouraged to purchase additional insurance if they
desire greater coverage.

 
LEGISLATIVE HISTORY:

2019: A4770

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Effective immediately.

2019-S4629A (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4629--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                              March 18, 2019
                                ___________
 
 Introduced  by  Sen. BRESLIN -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Judiciary  --  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  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.
                                                            LBD06962-05-9

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.