S 8066 NY
Relates to limits on amount of flood insurance required by a mortgagee
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Summary
This bill limits the amount of flood insurance that mortgagees can require on residential property. Mortgagees cannot require flood insurance exceeding the lesser of the property's replacement value or the outstanding mortgage balance, and cannot require contents coverage. For open-end lines of credit, the full line of credit amount is used to calculate insurance requirements, regardless of the amount drawn. Mortgagees must provide borrowers with notice stating that required flood insurance may not be sufficient to cover flood losses and suggesting they consider purchasing additional insurance. The bill provides an exception for entities subject to federal National Flood Insurance Act requirements. The bill takes effect immediately.
AI-generated plain-language summary of the bill text — neutral, and may be imperfect. See the full text below for the exact wording.
Official abstract
Sets the definition of "principal" for the purposes of limits on amount of flood insurance required by a mortgagee; clarifies applicability of the state law relative to certain federal programs and requirements.
Sponsor (1)
- James Skoufis Democratic · primary
Action history (4)
- May 15, 2025 REFERRED TO JUDICIARY · upper
- Jan 7, 2026 REFERRED TO JUDICIARY · upper
- May 19, 2026 AMEND AND RECOMMIT TO JUDICIARY · upper
- May 19, 2026 PRINT NUMBER 8066A · upper
Text versions (3)
Full text
Full text imported from assembly.state.ny.us
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Bill No.: Summary Actions Committee Votes Floor Votes Memo Text LFIN Chamber Video/Transcript S08066 Summary: BILL NO S08066A   SAME AS SAME AS A08030-A
  SPONSOR SKOUFIS   COSPNSR   MLTSPNSR   Amd §283, RP L   Sets the definition of "principal" for the purposes of limits on amount of flood insurance required by a mortgagee; clarifies applicability of the state law relative to certain federal programs and requirements.
Go to top S08066 Text:
STATE OF NEW YORK ________________________________________________________________________
8066--A
2025-2026 Regular Sessions
IN SENATE
May 15, 2025 ___________
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary -- recommitted to the Committee on Judiciary in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the real property law, in relation to limits on amount of flood insurance required by a mortgagee
The People of the State of New York, represented in Senate and Assem- bly, do enact as follows:
1 Section 1. Section 283 of the real property law, as amended by chapter 2 64 of the laws of 2025, is amended to read as follows: 3 § 283. Limits on amount of flood insurance required by mortgagee. 1. 4 No mortgagee shall require a mortgagor to whom the mortgagee makes, 5 increases, extends, or renews any loan or line of credit secured by 6 improved residential real property to purchase or pay for flood insur- 7 ance on such residential real property: (1) at a coverage amount that 8 exceeds the lesser of the replacement value of the improvement on the 9 residential real property or the outstanding principal mortgage balance 10 as of the beginning of the year for which the policy shall be in effect; 11 or (2) that includes coverage for contents . In the case of an open-end 12 line of credit, "principal" shall include the full line of credit amount 13 regardless of the amount that has been drawn on the line of credit . In 14 each instance where a mortgagee requires a mortgagor to purchase or pay 15 for flood insurance on such residential real property, the mortgagee 16 shall provide notice to the mortgagor at the time the mortgagee is noti- 17 fied of the need to purchase or pay for flood insurance that states the 18 following in clear and conspicuous print: 'The flood insurance we are 19 requiring you to purchase may not be sufficient to pay for many needed 20 repairs after a flood and may not compensate you for your losses in the 21 property due to the flood. If you wish to protect your home or invest-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10859-03-6
S. 8066--A 2
1 ment, you may wish to purchase more flood insurance than the amount we 2 are requiring you to buy.' 3 2. Any entity subject to the requirements of subdivision one of this 4 section and subject to the National Flood Insurance Act (42 U.S.C. § 5 4001 et. seq.) and implementing regulations issued by Board of Governors 6 of the Federal Reserve System, the Federal Deposit Insurance Corpo- 7 ration, the Office of the Comptroller of the Currency, the National 8 Credit Union Administration, or the Farm Credit Administration, as 9 applicable, shall not be in violation of subdivision one of this section 10 when it requires flood insurance in minimum required amount or for 11 contents under the National Flood Insurance Act and applicable regu- 12 lations. 13 3. For purposes of this section, residential real property shall have 14 the meaning as set forth in subdivision five of section four hundred 15 sixty-one of this chapter. 16 4. This section shall not apply to residential real property that is 17 used for collateral on a loan along with additional residential real 18 property or properties. 19 § 2. This act shall take effect immediately.
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