Relates to flood insurance limits

Homeowners get limits on required flood insurance

The law limits flood insurance requirements when lenders make, increase, extend, or renew home-secured loans or credit lines. Required coverage cannot exceed the lower of the home's replacement value or unpaid mortgage principal at the policy year's start. Lenders cannot require coverage for the home's contents. When telling borrowers they must buy or pay for flood insurance, lenders must give a clear, easy-to-see notice. It must warn that required coverage may leave needed repairs and flood losses unpaid, and suggest considering extra coverage. Homeowners can still buy more insurance. The act takes effect immediately, but these rules follow the referenced 2024 amendment's timing: 90 days after that amendment became law. Amended section 2 takes effect 90 days after this act becomes law.