We have a loan secured by several security agreements and one DOT with a maximum of $200,000. Loan Amount is $275,000, and value of improvements is $215,000.

In this case would we insure for the value of the improvements or the maximum in the DOT?

Amount of flood insurance required at least equal to the outstanding principal balance of the loan, value of improved property (structure/improvements) or the maximum limit of coverage made available with respect to the particular type of property under the act, whichever is less.

Looks like $215,000 to me. As ahou stated, the amount of the DOT doesn't come into play.