If flood insurance can be bought for coverage up to 250,000 .... what happens when a home cost or is worth? -

more than that ? Will the bank issue a mortgage even if you can't get enough flood insurance to cover the loan ?? You're self insured for the balance. Yes, the bank will issue the mortgage. Yes, a bank will grant a loan even if the property is worth more than $250K. That is because $250K in flood insurance is the maximum that any insurance company is required to to underwrite. However, there are companies that specialize in very high end flood insurance, but the premiums are steep. $250,000 is the maximum available under NFIP. Yes, you can still get a mortgage.