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Senate Bill S4696

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 Rules Committee

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2021-S4696 (ACTIVE) - Details

See Assembly Version of this Bill:
A4424
Current Committee:
Senate Rules
Law Section:
Real Property Law
Laws Affected:
Add §283, RP L
Versions Introduced in Other Legislative Sessions:
2019-2020: S4629, A4770
2023-2024: S7125, A5073

2021-S4696 (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-S4696 (ACTIVE) - Sponsor Memo

2021-S4696 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4696
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             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:
 
   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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