Requires replacement cost fire insurance on multiple dwellings and use of insurance proceeds to replace such multiple dwellings

BILL NUMBER:S3398

Title of bill

An act to amend the multiple dwelling law, in relation to fire insurance policies on occupied multiple dwellings

Summary of provisions

1. Would require that an owner of a multiple dwelling purchase fire insurance of such value that it cover the full replacement cost of said dwelling. Also, the policy must be renewed to be in effect at all times during the building's occupancy.

2. Would require that fire insurance proceeds be applied to the restoration of the damaged residential properties, to restore them to a habitable condition.

3. Provides for the continued residence of any tenant who shared no responsibility for the fire.

4. Makes void any provisions in any sales contract, mortgage indenture, lease or other document that is contrary to the provisions of this section.

5. Accords misdemeanor status to any owner of a multiple dwelling who fails to comply with the provisions of this section.

Justification

In order to combat the epidemic of arson sweeping New York, legislation is needed to make arson unprofitable, and also to help rebuild damaged residential properties, but also insure that tenants are not thrown out on the streets after such a tragedy. Currently, there is no requirement that an owner of residential property provide any insurance whatsoever, or if they have insurance, regulate how it is to be used.

Legislative history

2009-2010: S.4606 - Died in Housing 2008-2007: S.3371 - Died in Housing 2005-2006: S.3469 - Died in Housing 2003-2004: S.2457 - Died in Housing 2001-2002: S.1183 - Died in Housing 1999-2000: S.474 - Died in Housing 1997-1998: S.1868 - Died in Housing 1997-1998: A. - Died in Housing 1995-1996: S.1495 - Died in Housing 1995-1996: A.2095 - Died in Housing

Effective date

November 1st after becoming law.