2. Properties Located in Non-Participating Communities. Under Bank of America's requirements, a Property
located in a Flood Area that does not participate in the NFIP is ineligible for financing.
3. Flood Insurance Policy Requirements. If your Property is located in a SFHA and in a community that
participates in the NFIP, you must purchase a flood insurance policy that:
a. is issued by the NFIP, a Write Your Own insurer authorized to write NFIP policies and properly licensed
to do business where the Property is located, or a private insurer properly licensed to do business where the
Property is located;
b. meets the FEMA minimum deductible requirements and has a deductible no greater than $10,000, unless
a higher maximum deductible is required by state law (The deductible amount may not be above the
insurable value of the building or so high as to avoid mandatory purchase requirements for flood
insurance.);
c. identifies as the named insured on the policy at least one borrower who will have an ownership interest in
the Property and will be a mortgagor/trustor on the mortgage or deed of trust as applicable
d. includes a standard mortgagee clause naming Bank of America as an additional insured; and
e. provides for notice to Bank of America at least 45 days prior to cancellation or non-renewal of the policy.
4. Minimum Coverage Amount for Single Family Residences. As long as your property is located in a SFHA,
Bank of America requires, at a minimum, that you purchase and maintain for the life of the loan flood insurance
coverage in an amount equal to the lesser of:
• The outstanding principal balance of all loans on the Property (for home equity line(s) of credit, the
full value of the credit line(s)); or
• The full insurable value of the buildings on the Property (as described below); or
• The maximum amount of coverage available under the NFIP for the type of building or collateral.
5. Multiple Buildings on the Property (Single Family Residences). In addition to the main dwelling building, the
flood insurance coverage on your Property must include coverage for any other buildings on the Property. A
building is defined as a structure located within a SFHA, with two or more outside rigid walls and a fully
secured roof which is affixed to a permanent site, or manufactured home (a "manufactured home," also known
as a mobile home, is a structure built on a permanent chassis, transported to its site in 1 or more sections, and
affixed to a permanent foundation); or a travel trailer without wheels, built on a chassis and affixed to a
permanent foundation, that is regulated under the community's floodplain management and building ordinances
or laws. When there are multiple buildings that require flood insurance coverage, all buildings must have some
coverage and the total amount of required flood insurance coverage will be allocated among the buildings. The
allocation of coverage will be determined using the value of each respective building as compared to the overall
insurable value of the buildings.
6. Condominiums and Planned Unit Developments (PUD).
a. The full insurable value of the building(s) on the Property depends on the type of collateral securing the
loan(s) and the payout conditions under the insurance policy. For example, under a NFIP flood insurance
policy, if the building is your principal residence, the insurable value is typically the replacement cost value
of the building, subject to a limit of $250,000. If the building is a vacation or second home where you
reside less than 80% of the time, the insurable value is typically the actual cash value of the building,
subject to a limit of $250,000. Actual cash value is the replacement cost value of the building less
depreciation.
b. If you purchase and maintain flood insurance coverage that only meets Bank of America's minimum
requirements, and the amount or payout of the coverage is less than the full replacement cost value of the
building(s) on your Property, then, your coverage amount may be insufficient to fully replace or repair the
building(s) on your Property after a flood loss and may not otherwise fully compensate you for your losses
due to flood damage.
c. The choice remains with you to elect to purchase and maintain more flood insurance coverage than
Bank of America's minimum requirements. You should discuss your flood insurance needs with a licensed
insurance professional to decide whether Bank of America's minimum requirements are appropriate for your
circumstances, or whether additional coverage through the NFIP and/or an acceptable private flood
insurance policy is needed to fully protect the building(s) on your Property in case of a significant flood
event.
a. For a unit in a condominium or PUD where the homeowner's association maintains a Residential
Condominium Building Association Policy (RCBAP), the replacement cost value and number of units on
the RCBAP declaration page will be used in determining insurable value of the individual unit. The
following flood coverage requirements apply:
ENOIR.BOA 12/06/23