Code of Massachusetts Regulations
209 CMR - DIVISION OF BANKS AND LOAN AGENCIES
Title 209 CMR 57.00 - Flood Insurance
Section 57.03 - Limitations on Required Flood Insurance
Universal Citation: 209 MA Code of Regs 209.57
Current through Register 1531, September 27, 2024
(1) Limitations on Required Coverage. You cannot require in a mortgage, note, or otherwise, that a purchaser or owner of residential property purchase or pay for flood insurance on the property that:
(a) is at a coverage amount exceeding the
outstanding principal mortgage balance at the beginning of the year that the
flood insurance policy shall be in effect and, in the case of a home equity
line of credit, home equity loan, or second or subsequent mortgage, the full
value of the credit line, outstanding principal on the equity loan, or second
or subsequent mortgage on that property at the beginning of the year that the
flood insurance policy shall be in effect;
(b) includes coverage for contents;
or
(c) includes a deductible of
less than $5,000.
(2) Coverage Adjustment upon Policy Renewal. The owner of the residential property may request a reduction in the amount of flood insurance coverage upon renewal of the flood insurance policy to an amount equal to the outstanding principal mortgage balance at the beginning of the year that the policy shall be in effect. You are required to accept such reduction upon request by the owner.
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