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A national bank or Federal savings association shall use the standard flood hazard determination form developed by the Administrator of FEMA when determining whether the building or mobile home offered as collateral security for a loan is or will be located in a special flood hazard area in which flood insurance is available under the Act.
If your home is located in a Special Flood Hazard Area, you must purchase adequate flood insurance. The determination that your home is in a Special Flood Hazard Area may be made at the time of loan origination or at any time during the term of your loan. 1.ARTIII-GENERAL 1. Unless a higher maximum amount is required by law, the maximum dwelling deductible for homeowners/fire insurance and flood insurance may not exceed the higher of $1,000 or 1% of the face amount of the dwelling coverage.