FEMA requirements as follows:
a. Licensure - The insurer must be licensed, admitted, or otherwise approved to do business in the jurisdiction where the building is located, by the insurance regulator of that jurisdiction, except as indicated in b. below.
b. Surplus Lines Recognition (Non-Residential Commercial) - In the case of non-residential commercial property insurance issued under a policy of difference in conditions, multiple peril, all risk, or other blanket coverage, the insurer should be recognized, or not disapproved, as a surplus lines insurer by the insurance regulator of the jurisdiction where the building is located.
c. Requirement of 45-Day Cancellation/Non-Renewal Notice - The private flood insurance policy should include a requirement for the insurer to give 45 days’ written notice of cancellation or non-renewal to the insured with respect to the flood insurance coverage. The policy should also state that, to be effective, such notice must be mailed to both the insured and the lender or Federal agency lender, and must include information about the availability of flood insurance coverage under the NFIP. The policy should be as restrictive in its cancellation provisions as the Standard Flood Insurance Policy (SFIP).
d. Breadth of Policy Coverage - The policy must guarantee that the flood insurance coverage, considering deductibles, exclusions, and conditions offered by the insurer, is at least as broad as the coverage under
the SFIP.
e. Strength of Mortgage Interest Clause - Lenders must ensure that a mortgage interest clause similar to that contained in the General - Conditions section of the SFIP is contained in the policy.
f. Legal Recourse - The policy must contain a provision that the insured must file suit within 1 year after the date of written denial of all or part of the claim