---
title: Flood Insurance Deductibles
description: Learn about flood insurance deductibles, their range, and how lenders assess them to protect both borrowers and themselves from financial risks.
---

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# [Flood Insurance Deductibles](https://blog.bankerscompliance.com/en/floodinsurancedeductibles)

 Written by [Jerod Moyer](https://blog.bankerscompliance.com/en/author/jerod-moyer) | Jun 29, 2026 5:01:14 PM

When it comes to flood insurance deductibles, there are some general minimums and maximums are that are allowed but that range is quite large. For example, the deductible for a pre-FIRM (Flood Insurance Rate Map) residential property could be as low as $1,500 or as high as $10,000. Financial institutions have some flexibility determining what deductible they will allow a borrower to have but [Flood FAQ](https://www.fdic.gov/news/financial-institution-letters/2022/fil22020.html) #9 points out that …*it may not be a sound business practice for a lender, as a matter of policy, to always allow the borrower to use the maximum deductible. A lender should determine the reasonableness of the deductible on a case-by-case basis, taking into account the risk that such a deductible would pose to the borrower and lender.* Additionally, …*a lender may not allow the borrower to use a deductible amount equal to the insurable value of the property to avoid the mandatory purchase requirement for flood insurance.*

We have seen some misconceptions about flood insurance deductibles over the years, and Jerod explains more in the video.

Published 2026/06/29

[View full post](https://blog.bankerscompliance.com/en/floodinsurancedeductibles)

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