Is a "no appraisal" Line of Credit possible?

[Johann Jells]

We're cancelling a line of credit on a property with no mortgage, because the required flood insurance is crazy expensive and won't help us anyway. Thieving bank want $100 just to end a $0 balance loan! This line is more of insurance than an active source, at least for now. I have another property that isn't in the flood zone, with $185k outstanding, and last year the city reassessed it for $650k. 

Seems to me a bank would be safe with a $200k credit line on that property without my paying $600 for an appraisal. The local bank holding the above cancelled line and the mortgage on the other said they can't do that by law. But that seems stupid, it should be about LTV. They should be able to set a "no appraisal" floor on the value, like $500k, and work from there. But I've often found my "common sense" doesn't translate to the real world. Does anyone have relevant info on this process?

[Ned Carey]

@Johann Jells no it is not crazy. I am sure it is because regulations require appraisals so we don't have another financial collapse. That said I bet there is a way around that. But why are you worried about $600 on a $200,000 line of credit.