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The bank force-placed flood insurance on my property. What is the amount of insurance required to be placed?

Under the Act, the mandatory flood insurance purchase amount for a one- to four-family, non-condominium residential structure is the lesser of

  • the outstanding principal balance of the loan(s), or
  • the maximum amount of insurance available under the National Flood Insurance Program (NFIP), which is the lesser of
    • the maximum limit available for the type of structure ($250,000), or
    • the insurable value of the structure (typically the replacement cost value of your home).

For one- to four-family, non-condominium residential buildings, the maximum amount of flood insurance available under the NFIP is $250,000. For other non-condominium residential buildings and non-residential buildings, the maximum amount of flood insurance available under the NFIP is $500,000.

Lenders, however, generally are permitted to require and force place more flood insurance coverage than the minimum required by the Act.

Refer to 42 USC 50 "National Flood Insurance Act."

Last Reviewed: October 2020

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.

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