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S3414Senate2017-2018 Session

Require Fire Insurance for Landlords

Official title

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

Sponsor Kevin S. ParkerSD-21Affects Housing
Status
In Senate Committee
Housing, Construction And Community Development
Impact
7/10
Significant
Passage
0%

Bill progress

Step 2 of 7

In committee · Housing, Construction And Community Development

What's happening

This bill requires owners of multiple dwellings to maintain fire insurance and use proceeds to restore damaged property, allowing tenants to return under prior lease terms.

Why it matters

  1. Ensures tenant stability after fires. By mandating that fire insurance proceeds must restore damaged dwellings to at least their previous condition, the bill helps safeguard tenants’ ability to return to their homes, reducing the risk of long-term displacement.

  2. Protects lease rights. Tenants who were not responsible for the fire are explicitly granted the right to return under their pre-fire lease terms, preventing potential rent hikes or unfavorable new lease conditions after repairs.

  3. Limits landlord and lender loopholes. Any contract clauses (including those in sales, leases, or mortgages) that would circumvent these tenant protections are rendered void, closing common legal loopholes that could undermine tenant rights.

  4. Creates legal accountability. Landlords who fail to maintain fire insurance as required, or who do not use insurance proceeds to restore the property, can face misdemeanor charges, strengthening enforcement and compliance.

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Who cares

Headline styles

Require Fire Insurance for Landlords

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Kevin S. Parker

Senator · Senate District 21

No co-sponsors yet.

History

  1. Referred to housing, construction and community development
  2. Referred to housing, construction and community development

Full text

2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

3414

2017-2018 Regular Sessions

IN SENATE

January 23, 2017

Introduced by Sen. PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Housing, Construction and Community Development

AN ACT to amend the multiple dwelling law, in relation to fire insurance policies on occupied multiple dwellings

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. The multiple dwelling law is amended by adding a new section 308-a to read as follows:

§ 308-a. Fire insurance contracts required; proceeds thereof. 1. Any owner of a multiple dwelling must procure a policy of fire insurance thereon and continue the same in full force and effect at all times during the occupancy of such multiple dwelling by one or more tenants at a value equivalent at all times to the full replacement value thereof.

2. Notwithstanding the provisions of any other law, the proceeds of any fire insurance contract on a multiple dwelling shall be used to restore the damaged property to a habitable condition at least equivalent to the condition of such multiple dwelling prior to the loss.

3. If a multiple dwelling is to be occupied as such after a loss reimbursable pursuant to such fire insurance contract, any person who was a tenant thereof at the time of the loss and shares no responsibility therefor shall have the opportunity to continue his or her occupancy after restoration for the duration of his or her lease under the same terms and conditions as before said loss.

4. Any provision in a sales contract, mortgage indenture, lease or other document contrary to the provisions of this section shall be void as against public policy.

5. Any failure on the part of an owner of a multiple dwelling to comply with the provisions of this section shall cause him or her to be guilty of a misdemeanor.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD06296-01-7

S. 3414 2

§ 2. This act shall take effect on the first of November next succeeding the date on which it shall have become a law and shall apply to fire insurance contracts, sales contracts, mortgage indentures, leases or other documents entered into on and after the effective date of this act.

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

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. This act shall take effect on November 1st succeeding the date it becomes law; with provisions.

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

2015-2016:S.1435- Died in Housing 2013-2014:S.3256- Died in Housing 2011-2012:S.3398- Died in Housing 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 1995-1996:A.2095-Died in Housing

Effective date

November 1st after becoming law.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.