We have had a $5,000 deductible on our flood insurance, but now our mortgage company is demanding we lower our deductible to $1,000. Can they do that? This is especially galling since our property isn't in a flood zone, but FEMA is stalling BIG TIME in accepting the new floodplain map my city submitted over a year ago.

Read the insurance clause in your mortgage and/or loan agreement, but in most cases the lending institution reserves the right to require insurance and deductibles in an amount they feel necessary to protect their interest in the collateral. I know in our bank we will not accept a deductible greater than $1,000 for residential structures .

You will have to contact someone at the City or FEMA for the reasons in the delay. Until FEMA officially declares the property not to be in a flood zone, the lending institution is required by law to require you to have flood insurance coverage