Homeowners insurance is underwritten by the insurance company, not the lender. The lender may have requirements for the deductible but it is the insurance company that ultimately determines the amount of coverage on the dwelling.
Things that you need to consider with your homeowner's policy include expanded replacement cost for the dwelling. This allows for the insurance company to go above the limit shown on the policy. Typically, you are looking at 20% - 25% higher than your dwelling limits. Most insurance companies include this on the policy, but check to make sure. Ask about "guaranteed" or "expanded" replacement.
Be sure your liability limits exceed what your home is worth.
Also, make sure that your contents are insured for replacement cost LESS depreciation... meaning that if you have a 1999 TV set that burns in a fire, that the insurance policy is written so that you will be reimbursed for a 2009 TV.
Flood insurance is only necessary if you are on a flood plain. FEMA normally wont take on something that isn't on a flood plain.