Albany, NY – Today, a significant victory for New York homeowners takes effect with the implementation of Ch. 557 of 2024 (S7125-A/A5073-A), a law that protects homeowners from excessive flood insurance requirements. Assemblywoman Marianne Buttenschon, a key co-sponsor of the bill, played an instrumental role in advancing this vital legislation, ensuring fairness and financial relief for residents across the state.

Under this law, mortgage lenders can no longer require homeowners to purchase flood insurance exceeding the lesser of the replacement value of the home or the outstanding principal mortgage balance as of the beginning of the year. Additionally, homeowners cannot be forced to buy coverage for personal contents inside their homes as part of these policies.

“This is a huge step forward in protecting homeowners from unnecessary financial burdens,” said Assemblywoman Buttenschon. “Families should not have to worry about being forced to pay for excessive insurance policies that go beyond what is necessary to protect their homes. This legislation ensures that homeowners know their rights and only purchase the coverage they truly need.”

The passage of this law addresses a longstanding issue where mortgage lenders mandated inflated insurance coverage, often beyond the actual risk or value of the property, creating financial strain for families already managing rising costs of living. Homeowners now have greater control over their insurance decisions, with clear and fair guidelines ensuring transparency in lender-mandated insurance requirements.

The bill, which passed with overwhelming bipartisan support in the New York State Assembly and Senate, was signed into law on December 13, 2024, by Governor Kathy Hochul. Assemblywoman Buttenschon worked alongside her colleagues in the Legislature, including primary sponsor Assemblymember Pamela Hunter, to advocate for homeowners across New York State.

“This is about empowering homeowners with the knowledge and the right to make informed financial decisions,” added Buttenschon. “I am proud to stand with my colleagues in delivering real solutions that keep more money in the pockets of hardworking New Yorkers.”

This new law takes effect today and applies to all mortgage agreements moving forward. Homeowners should contact their lenders to ensure compliance with these updated legal protections.