Sets the definition of "principal" for flood insurance limits required by mortgagees and clarifies state law applicability to federal programs.

This bill amends the real property law to define "principal" for the purposes of flood insurance limits required by mortgagees. It specifies that for an open-end line of credit, the "principal" includes the full line of credit amount regardless of the amount drawn. The bill also clarifies that state law does not apply when federal agencies require flood insurance in the minimum required amount or for contents under the National Flood Insurance Act. It mandates that mortgagees provide notice to mortgagors about the potential inadequacy of required flood insurance.

Sets the definition of "principal" for flood insurance limits required by mortgagees and clarifies state law applicability to federal programs.

This bill amends the real property law to define "principal" for the purposes of flood insurance limits required by mortgagees. It specifies that for an open-end line of credit, the "principal" includes the full line of credit amount regardless of the amount drawn. The bill also clarifies that state law does not apply when federal agencies require flood insurance in the minimum required amount or for contents under the National Flood Insurance Act. It mandates that mortgagees provide notice to mortgagors about the potential inadequacy of required flood insurance.