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.
Impact
The legislation directly affects the requirements related to flood insurance for residential properties. It clarifies what constitutes 'principal' in cases of open-end lines of credit, emphasizing that the full line of credit should be considered for insurance coverage. Furthermore, it mandates mortgagees to notify mortgagors about potential inadequacies in the required flood insurance coverage, encouraging them to consider additional protection. This amendment seeks to align state law with federal standards while ensuring that homeowners are adequately informed about their insurance options.
Summary
Bill A08030 introduces amendments to the real property law specifically regarding the limits imposed on flood insurance that mortgagees can require from mortgagors. The bill establishes that no mortgagee may require flood insurance exceeding the lesser of the property's replacement value or the outstanding principal mortgage balance. This regulation is aimed at protecting homeowners from being overburdened by excessive insurance requirements when taking out or renewing a mortgage loan.
Contention
There may be opposing views regarding the bill, particularly from the perspective of mortgage lenders, who might argue that imposing limits on required flood insurance could expose them to higher risks in the event of a flood disaster. Lenders typically operate under the existing federal regulations and may view the state amendments as potentially complicating compliance with national standards. Additionally, the requirement for lenders to provide clear notifications about the limitations of required insurance could be seen as an additional administrative burden, leading to differing opinions on its practicality.
Same As
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.
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.
Requires peer-to-peer car sharing programs provide insurance coverage in amounts equal to the financial responsibility requirements set forth in section three hundred eleven of the vehicle and traffic law; removes requirements relating to requiring additional insurance coverage.
Requires peer-to-peer car sharing programs provide insurance coverage in amounts equal to the financial responsibility requirements set forth in section three hundred eleven of the vehicle and traffic law; removes requirements relating to requiring additional insurance coverage.
Imposes certain requirements for the use of aerial images of an insured property for the purposes of homeowners' insurance; requires certain notices and appeals process.
Imposes certain requirements for the use of aerial images of an insured property for the purposes of homeowners' insurance; requires certain notices and appeals process.
Clarifies the definition of custom fabrication for the purposes of prevailing wage; requires certain reports for public works contracts including such custom fabrication.