FLOOD COMPLIANCE EDUCATION SERIES

FLOOD COMPLIANCE EDUCATION SERIES – PART 6

FLOOD INSURANCE LIMITS AND DEDUCTIBLES

When flood insurance is necessary borrowers must provide flood insurance equal to the loan amount or the maximum coverage available.

The 1994 Flood Reform Act increased the maximum amounts of flood insurance available under the National Flood Instance Program (NFIP). The current amounts are shown below:

Building Coverage	Emergency Program	Regular Program
Single Family Dwelling	$ 35,000	$ 250,000
2-4 Family Dwelling	$ 35,000	$ 250,000
Other Residential	$ 100,000	$ 250,000
Commercial	$ 100,000	$ 500,000
Contents Coverage
Residential	$ 10,000	$ 100,000
Commercial	$ 100,000	$ 500,000

Special limits apply in Alaska, Hawaii, Guam, and the U.S. Virgin Islands. Please call our Insurance Department at 1-800-333-0883 if you have any questions on limits available for these areas.

The amount of the deductible is set by FEMA. Currently the standard minimum deductible for policies rated on the basis of subsidized rates is $750. A minimum $500 deductible applies to all other policies. NFIP makes available optional deductibles at a premium discount. The maximum deductible is $5,000.

If your borrower needs flood insurance, or shows up at closing without it immediate coverage can be purchased by calling 1-800-333-0883 for immediate policy placement at standard government rates.

We hope you found this short summary helpful. If you would like to find out more information, of if you’d like a free copy of the most recent FEMA publication "Mandatory Purchase of Flood Insurance Guidelines" please call 1-800-933-5663 ext. 100.

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E-mail: customerservice@americasflood.com