Shown verbatim: the complete text as captured from the official source posted by the New York State Senate, fetched 2026-08-11. Nothing is edited or removed. Where this bill amends existing law, language marked for deletion in the official source appears here in brackets. The official bill page.
S T A T E O F N E W Y O R K
________________________________________________________________________
2056
2025-2026 Regular Sessions
I N A S S E M B L Y
January 14, 2025
___________
Introduced by M. of A. HUNTER -- 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; and to amend a chapter of
the laws of 2024 amending the real property law relating to prohibit-
ing mortgagees from requiring mortgagors of certain real property to
purchase flood insurance exceeding certain limits, as proposed in
legislative bills numbers S. 7125-A and A. 5073-A, in relation to the
effectiveness thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 283 of the real property law, as added by a chapter
of the laws of 2024 amending the real property law relating to prohibit-
ing mortgagees from requiring mortgagors of certain real property to
purchase flood insurance exceeding certain limits, as proposed in legis-
lative bills numbers S. 7125-A and A. 5073-A, is amended to read as
follows:
§ 283. Limits on amount of flood insurance required by mortgagee. No
mortgagee shall require a mortgagor to whom the mortgagee makes,
increases, extends, or renews any loan or line of credit secured by
improved residential real property to purchase or pay for flood insur-
ance on such residential real property: (1) at a coverage amount that
exceeds the LESSER OF THE REPLACEMENT VALUE OF THE RESIDENTIAL REAL
PROPERTY OR THE outstanding principal mortgage balance as of the begin-
ning of the year for which the policy shall be in effect; 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
residential real property, the mortgagee shall provide notice to the
mortgagor at the time the mortgagee is notified of the need to purchase
or pay for flood insurance that states the following in clear and
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02840-02-5
A. 2056 2
conspicuous print: ['Please note that the] 'THE flood insurance we are
requiring you to purchase [will only protect your creditor or lender's
interest in your property. The insurance] 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. Section 2 of a chapter of the laws of 2024 amending the real
property law relating to prohibiting mortgagees from requiring mortga-
gors of certain real property to purchase flood insurance exceeding
certain limits, as proposed in legislative bills numbers S. 7125-A and
A. 5073-A, is amended to read as follows:
§ 2. This act shall take effect [immediately] ON THE NINETIETH DAY
AFTER IT SHALL HAVE BECOME A LAW.
§ 3. This act shall take effect immediately; provided, however, that
section one of this act shall take effect on the same date and in the
same manner as a chapter of the laws of 2024 amending the real property
law relating to prohibiting mortgagees from requiring mortgagors of
certain real property to purchase flood insurance exceeding certain
limits, as proposed in legislative bills numbers S. 7125-A and A.
5073-A, takes effect.Every fact on this page links to its source, starting with the official bill record.