is it illegal for my bank to require full replacement cost on a home loan?

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    Anonymous

    I’m in the process of getting a mortgage for a house. The house cost 85000 but I’m only taking out a loan for 63000. When I first got approved my payments were 450 a month. That included home owners and property tax. Now its 2 weeks before closing and my bank decided that I didn’t have enough coverage and told me I needed full replacement cost of $ 185000 based only on the sq foot of my house. Then they said that I was in a zone A flood zone and I need full coverage flood insurance…but this only covers the hot water heater and furnace??? What I need to know is…is it illegal for the bank to require me to have full replacement home owners? And is it true flood insurance only covers furnace and heater? Any ideas on what I should do?

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