We have a condo loan where there are 4 units. Our loan is for one unit. The condo association does carry flood insurance; however, it appears we are under if you divide the total amount of the flood insurance by equal parts (4). If we don't know the square footage of each unit isn't this the only way to determine how much coverage our particular unit has?

Also, since it appears we are under do we suggest to the borrower or the condo association to get more insurance? I've read the Mandatory Guidelines from FEMA for condos, but not sure what direction we should take. Thanks.

Once you determine that you don't have sufficient flood insurance you have to start the force-placing process. The unit owner can talk to the condo association about increasing coverage but, chances are, you'll end up force placing for the difference or the borrower will buy a unit owners/residential policy.

I agree with Cowboy.


Yes. Divide the coverage by 4.