Requirements for One-to Four-Unit Properties
The minimum amount of flood insurance required for first mortgages must be equal to the lesser of
• 100% of the replacement cost value of the improvements,
• the maximum coverage amount available from the National Flood Insurance Program (NFIP), or
• the unpaid principal balance (UPB) of the loan (or loan amount at the time of origination).
See Insurance Requirements for Renovation and Energy Improvement Loans in B7-3-05, Additional Insurance Requirements for additional information.
See Mortgagee Clause for Property and Flood Insurance and Named Insured for Property and Flood Insurance in B7-3-08, Mortgagee Clause, Named Insured, and Notice of Cancellation Requirements for mortgagee clause and named insured requirements.
For additional information, see B7-3-06, Flood Insurance Requirements for All Property Types.