Can the deductible on a private flood policy be more than $10,000?

Under the discretionary acceptance provisions, isn't one of the factors to consider in determining whether a private flood policy provides sufficient protection include whether the policy's deductible is reasonable based on the borrower's financial condition?

Is it a violation if the deductible is say $25,000 on a private policy with coverage of $250,000? What if the coverage is for $1,000,000?

A reasonable deductible for one person might not be reasonable for the next person. It would totally depend on their financial condition and the nature of the transaction. You can accept a larger deductible under the discretionary acceptance provisions and the defense of your acceptance position would have to be outlined in the written justification that is required on all discretionally accepted private flood insurance policies.