What does the determination mean for the borrower?
The flood zone check on the Standard Flood Hazard Determination Form decides whether the law makes flood insurance a loan condition. If the home is in a high-risk zone, it does. A borrower who thinks the form is wrong can ask for a copy and compare it with the FEMA map for the address.
See what the determination form shows the borrower.
How much coverage does the law ask for?
The floor is the smaller of what is still owed on the loan or the most the NFIP will write for that type of building. Only the building counts, not the land. The lender can ask for more than the floor.
See the coverage rule and the NFIP limits by building type.
Can the borrower choose a private policy?
Yes. A federally regulated lender must accept a private flood policy that meets the federal definition. A private policy is not always cheaper or broader, so the way to know is to compare both for that building.
See the tests a private policy has to meet.
What goes in the mortgagee clause?
The lender is named on the flood policy as the mortgagee. On an NFIP policy, a building claim check goes to the borrower and the lender together. Private flood policies have their own clause, so the borrower should read it before buying.
Read how the mortgagee clause works.
When can coverage start?
NFIP flood policies have a 30-day waiting period, but if the borrower buys the policy as part of getting, refinancing, increasing, extending or renewing the loan, coverage can start at closing with no wait, as long as the application and payment are in by closing. A lender asking for flood coverage partway through an existing loan does not skip the wait.
Read how the loan exception works. Read what happens with a letter in the middle of a loan.
What if the borrower does nothing?
If a home in a high-risk zone has no flood policy, or too little, the lender must tell the borrower to buy coverage. If the borrower does not buy it in time, the lender must buy a policy and bill the borrower for it. Buying their own policy first keeps the choice with the borrower.
Read what force-placed insurance means.
Want to send this to your borrower?
Type the address and copy a link to its flood report. Your borrower sees the zone and the options on their own phone, with nothing to sign up for.
Questions Florida loan officers ask about flood insurance
Can a private flood policy satisfy the requirement?
Yes, if it meets the federal definition of private flood insurance. A federally regulated lender must accept a policy that does.
Will the 30-day wait hold up funding?
Not if the NFIP policy is bought as part of the loan. Ask in writing for coverage to start at closing, and get the application and payment in by closing.
Does the flood zone set the borrower's price?
No. The zone sets whether the lender requires a policy. The price depends on the home itself, like how high it sits and what it costs to rebuild. Same flood zone, very different prices.
Sources and dates
- 42 U.S.C. 4012a, flood insurance purchase requirement: (b)(1) amount of coverage, (b)(7) private flood insurance, (e) force placement. govinfo.gov, read October 26, 2026. https://www.govinfo.gov/link/uscode/42/4012a
- 12 CFR Part 22, Loans in Areas Having Special Flood Hazards: 22.2 definitions, 22.3 amount and private flood acceptance, 22.7 force placement, 22.9 notice. eCFR, up to date as of October 22, 2026, read October 26, 2026. https://www.ecfr.gov/current/title-12/chapter-I/part-22
- 12 CFR 22.6 (standard flood hazard determination form), 22.8 (determination fees) and 22.9 (notice of special flood hazards). eCFR, up to date as of November 2, 2026, read November 4, 2026. https://www.ecfr.gov/current/title-12/chapter-I/part-22
- Standard Flood Insurance Policy, Dwelling Form, Article VII.N (mortgage clause). 44 CFR Part 61 Appendix A(1), eCFR, up to date as of November 2, 2026, read November 4, 2026. https://www.ecfr.gov/current/title-44/chapter-I/subchapter-B/part-61
- 44 CFR 61.11, effective date and time of coverage (waiting period and exceptions). eCFR, read October 25, 2026. https://www.ecfr.gov/current/title-44/chapter-I/subchapter-B/part-61/section-61.11
- FEMA flood zones (Special Flood Hazard Area, A, V and X zones). Read October 26, 2026. https://www.fema.gov/flood-zones
Facts last checked November 5, 2026. Every figure comes from the federal or state source listed above.