Bill > A07237

This bill introduces a new type of insurance called "real estate value assurance insurance" that protects property owners from potential loss of property value specifically caused by local rezoning or significant neighborhood land use changes, as opposed to broader economic downturns. The bill amends the New York State insurance law to define this new insurance category and incorporate it into existing insurance regulations, specifically adding it as paragraph 36 to the insurance law's section on insurance types. The bill allows excess line brokers to procure these insurance policies from insurers not typically authorized to do business in the state, classifies real estate value assurance as a "basic kind of insurance," and establishes financial requirements for insurers offering this type of coverage. The new insurance product will require insurers to maintain a minimum capital of $2,000,000 with a $1,000,000 deposit, similar to other specialized insurance types. By creating this new insurance category, the bill aims to provide property owners with financial protection against localized changes that could negatively impact their real estate value, offering a form of risk mitigation for homeowners and investors concerned about potential neighborhood transformations.

Business and Industry

https://www.nysenate.gov/legislation/bills/2025/A7237