Bill > A02056

This bill amends the real property law to clarify regulations around flood insurance requirements for mortgagors (property borrowers). The key changes include limiting mortgagees (lenders) from requiring flood insurance coverage that exceeds the lesser of the property's replacement value or the outstanding principal mortgage balance, and prohibiting lenders from mandating contents coverage. The bill also modifies the required notice to mortgagors, updating the language to more clearly explain that the required flood insurance may not fully protect the borrower's property or compensate for all potential flood-related losses. Additionally, the bill adjusts the effective date of the law, changing it from immediate implementation to taking effect 90 days after becoming law. The purpose of these changes appears to be protecting borrowers by preventing lenders from over-requiring flood insurance and ensuring borrowers are more transparently informed about the limitations of the insurance they are required to purchase.

Justice

https://www.nysenate.gov/legislation/bills/2025/A2056