New York Legislature – Flood Insurance Limits
The New York Assembly and Senate recently passed AB-A5073, which prohibits mortgagees from requiring mortgagors of certain real property to purchase flood insurance exceeding certain limits. Specifically, the bills prevent mortgagees from requiring a mortgagor to purchase or pay for flood insurance coverage on residential real property that exceeds the unpaid balance of the loan as of the beginning of the year for which the policy shall be in effect or that includes coverage for contents. The legislation also includes disclosure requirements to inform borrowers about potential insufficiencies in the required flood insurance coverage and that they may purchase additional coverage to protect their interests. The legislation is currently awaiting delivery to the Governor, and if signed, these requirements would take effect immediately.
We encourage all clients to review AB-A5073 in its entirety.
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