What is the maximum allowable insurance deductible? A: The maximum deductible for homeowners and flood insurance is the higher of $1,000 or 1% of the face amount of the policy.
Q: Is flood insurance required? A: Federal law mandates that we perform a flood search on your property at the time of closing and that we monitor flood map changes for the life of the loan. If your insurable improvement is determined to be located in a Special Flood Hazard Area or Zone A as determined by the Federal Emergency Management Association (FEMA), we require a flood policy and will maintain an escrow account for the payment of premiums. Q: What is mortgage insurance? A: Insurance that protects mortgage lenders against loss in the event of default by the borrower. Private companies provide mortgage insurance (PMI) for conventional loans. Q: Can Private Mortgage Insurance (PMI) be canceled? A: Under certain circumstances, you may be able to request a waiver of PMI. The conditions for cancellation of the PMI will be determined by the holder of your Mortgage Note at the time of your written request.
