New York S02670 amends the real property law to clarify the limits on flood insurance required by mortgagees and modifies the effective date of the.

New York S02670 amends the real property law to prohibit mortgagees from requiring mortgagors to purchase flood insurance exceeding certain limits. Specifically, mortgagees cannot require mortgagors to buy flood insurance that exceeds the lesser of the replacement value of the residential property or the outstanding mortgage balance. Additionally, the insurance cannot cover contents. When a mortgagee requires flood insurance, they must notify the mortgagor that the required insurance only protects the lender's interest and may not cover all repair costs or losses due to a flood.

New York S02670 amends the real property law to clarify the limits on flood insurance required by mortgagees and modifies the effective date of the.

New York S02670 amends the real property law to prohibit mortgagees from requiring mortgagors to purchase flood insurance exceeding certain limits. Specifically, mortgagees cannot require mortgagors to buy flood insurance that exceeds the lesser of the replacement value of the residential property or the outstanding mortgage balance. Additionally, the insurance cannot cover contents. When a mortgagee requires flood insurance, they must notify the mortgagor that the required insurance only protects the lender's interest and may not cover all repair costs or losses due to a flood.