NY A02056

Limits flood insurance coverage that mortgagees can require mortgagors to purchase to the lesser of the property's replacement value or the outstanding principal mortgage balance at the beginning of the policy year

Prohibits mortgagees from requiring mortgagors to purchase flood insurance coverage for contents

Modifies the required disclosure notice to mortgagors, removing language stating insurance "will only protect your creditor or lender's interest" and instead warning that required coverage "may not be sufficient to pay for many needed repairs after a flood"

Changes the effective date of the 2024 law (S. 7125-A/A. 5073-A) from "immediately" to 90 days after becoming law

Applies to loans or lines of credit secured by improved residential real property that are made, increased, extended, or renewed