Bill > A08030

This bill amends the New York Real Property Law to establish limits on flood insurance requirements for mortgages on residential properties. The bill defines the maximum amount of flood insurance a mortgagee (lender) can require a mortgagor (borrower) to purchase, which cannot exceed either the replacement value of the property improvements or the outstanding principal mortgage balance. For open-end lines of credit, "principal" is defined to include the full line of credit amount, regardless of how much has been drawn. The bill mandates that mortgagees provide a specific notice to borrowers highlighting that the required flood insurance may not fully cover potential flood damage repairs or losses. Additionally, the bill clarifies that entities subject to federal banking regulations (such as the Federal Deposit Insurance Corporation and the Federal Reserve) will not be in violation of these requirements when they follow the minimum flood insurance requirements under the National Flood Insurance Act. This legislation aims to protect homeowners from being over-insured and ensure they are informed about the limitations of required flood insurance coverage.

Justice

https://www.nysenate.gov/legislation/bills/2025/A8030