2 questions re: flood insurance:

1) When the bank holds the 1st and 2nd T/Ds, should we be shown as both First and Second Mortgagees on the policy? Or is it enough that we are shown as the only mortgagee? My concern is if a third T/D ia made with another lender and they add their name to the policy. Are we still covered for both our 1st and 2nd /T/Ds?

2) We have a 2nd T/D and flood insurance expired. We have force-placed in an amount to cover both the 1st (another lender) and our 2nd. For mortgagee, do we need to state the name of the other lender as first mortgagee and ourselves as second? Or can we show our name only as mortgagee on the force-placed policy?

Thank you!

1. Flood claims are always paid in lien status order. It doesn't matter if your listed as 2nd or not. At the time of a disaster, FEMA will do a lien search and pay the lien holders in order, no matter if they are listed or not. Crazy, isn't it!

2. You should list all mortgagees. Again, it really doesn't matter as FEMA will do a lien search and pay in order.

Thank you!