New York Laws
Part 2 - Formation and Construction of Lease Contract
2-A-220 - Effect of Default on Risk of Loss.

(1) Where risk of loss is to pass to the lessee and the time of
passage is not stated:
(a) if a tender or delivery of goods so fails to conform to the
lease contract as to give a right of rejection, the risk of
their loss remains with the lessor, or, in the case of a
finance lease, the supplier, until cure or acceptance.
(b) if the lessee rightfully revokes acceptance, he or she, to
the extent of any deficiency in his or her effective
insurance coverage, may treat the risk of loss as having
remained with the lessor from the beginning.
(2) Whether or not risk of loss is to pass to the lessee, if the
lessee as to conforming goods already identified to a lease contract
repudiates or is otherwise in default under the lease contract, the
lessor, or, in the case of a finance lease, the supplier, to the extent
of any deficiency in his or her effective insurance coverage may treat
the risk of loss as resting on the lessee for a commercially reasonable
time.