N.Y. Real Property Law § 283: Limits on amount of flood insurance required by mortgagee

§ 283. Limits on amount of flood insurance required by mortgagee. No

mortgagee shall require a mortgagor to whom the mortgagee makes,

increases, extends, or renews any loan or line of credit secured by

improved residential real property to purchase or pay for flood

insurance on such residential real property: (1) at a coverage amount

that exceeds the lesser of the replacement value of the residential real

property or the outstanding principal mortgage balance as of the

beginning of the year for which the policy shall be in effect; or (2)

that includes coverage for contents. In each instance where a mortgagee

requires a mortgagor to purchase or pay for flood insurance on such

residential real property, the mortgagee shall provide notice to the

mortgagor at the time the mortgagee is notified of the need to purchase

or pay for flood insurance that states the following in clear and

conspicuous print: 'The flood insurance we are requiring you to purchase

may not be sufficient to pay for many needed repairs after a flood and

may not compensate you for your losses in the property due to the flood.

If you wish to protect your home or investment, you may wish to purchase

more flood insurance than the amount we are requiring you to buy.'