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Assembly Bill A4424

2021-2022 Legislative Session

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

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Archive: Last Bill Status - In Senate Committee Judiciary Committee

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2021-A4424 (ACTIVE) - Details

See Senate Version of this Bill:
S4696
Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Add §283, RP L
Versions Introduced in Other Legislative Sessions:
2019-2020: A4770, S4629
2023-2024: A5073, S7125

2021-A4424 (ACTIVE) - 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.

2021-A4424 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4424
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2021
                                ___________
 
 Introduced  by  M.  of  A. HUNTER, STECK, QUART, WALLACE, BUTTENSCHON --
   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.
                                                            LBD05679-01-1

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