The new Q&As state that both contents and building will be considered to have a sufficient amount of flood insurance coverage for regulatory purposes as long as some reasonable amount of insurance is allocated to each category. (#39).. but the example they use does cover the dwelling for the insurable value and then the contents for the difference. We have a $180,000 loan. The dwelling can be insured for a maximum of $150,000 (insurable value) so the underwriter wants to also hold contents. The dwelling policy came in at $125,000 (which by itself is underinsured), but with the content insurance coverage of $70,000, the total amount of flood insurance coverage exceeds the amount of the loan. Are we okay in not requiring the dwelling coverage to be increased to the insurable value?
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