Bill > S08066

This bill amends the Real Property Law to set limits on flood insurance requirements for mortgages on residential properties. Specifically, it prohibits mortgagees from requiring borrowers to purchase flood insurance that exceeds the lesser of the replacement value of the property improvements or the outstanding principal mortgage balance. For open-end lines of credit, the bill defines "principal" as the full line of credit amount, regardless of how much has been drawn. The bill mandates that mortgagees provide a clear notice to borrowers stating that the required flood insurance may not fully cover potential flood damage repairs or losses. Additionally, the bill clarifies that entities subject to federal flood insurance regulations (such as the Federal Reserve, FDIC, and other financial regulators) will not be in violation of these requirements when they require flood insurance at the minimum amounts specified under the National Flood Insurance Act. The purpose of this bill appears to be protecting borrowers from excessive flood insurance requirements while ensuring compliance with federal regulations.

Justice

https://www.nysenate.gov/legislation/bills/2025/S8066