What's happening
This bill prohibits mortgage lenders in New York from requiring homeowners to buy flood insurance exceeding the mortgage amount or covering contents, and mandates specific disclosure language.
Why it matters
Protects homeowners from being forced to buy excessive flood insurance. , potentially lowering their overall housing costs by restricting coverage to just the outstanding mortgage and not requiring coverage for personal contents.
Ensures greater transparency in flood insurance requirements. by mandating lenders provide clear, conspicuous disclosure explaining that the required insurance only protects the lender’s interest—not the homeowner’s property or belongings.
Empowers homeowners to make informed decisions. about obtaining additional flood coverage for their own protection, rather than being required to purchase it solely for the lender’s benefit.
May limit unnecessary premium payments. , particularly for homeowners with low mortgage balances or those who do not want or need contents coverage, better aligning insurance costs with actual risk and need.
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Who cares
Headline styles
Limit Required Flood Insurance
Plain English, a few words. Used as the page title.
Sponsors
History
- Recommitted to rules
- Vote reconsidered - restored to third reading
- Substitution reconsidered
- 3rd reading cal.146
- Substituted for S4629A
- Referred to rules
- Delivered to senate
- Passed assembly
- Ordered to third reading cal.183
- Advanced to third reading cal.508
- Reported
- Print number 4770a
Show 2 earlier actions
- Amend and recommit to judiciary
- Referred to judiciary
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit Mandatory Flood Insurance
Senate Floor Calendar · Sponsor Neil D. Breslin
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4770--A
2019-2020 Regular Sessions
IN ASSEMBLY
February 5, 2019
Introduced by M. of A. HUNTER, STECK -- read once and referred 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 mortgagees 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 Assembly, 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.
LBD06962-04-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.