We have a $280,000 loan secured by two tracts of land - one contains a residence (valued at over $300,000) and the other contains 4 other structures (cabins, storage sheds - estimated value of $25,000).

We have a current flood policy for $250,000 on the home and an excess policy on the home for $19,000. The agent is telling us that the $250,000 policy provides 10% of the dwelling amount ($25,000) for other structures. The additional $19,000 excess policy covers strictly the home.

Do we have adequate coverage?

The agent is sadly mistaken.

http://www.fema.gov/news/newsrelease.fema?id=18292

Does my NFIP policy cover all the buildings on my property?

The Standard Flood Insurance Policy provides coverage for one building per policy. The only exception is 10 percent coverage for a detached garage. However, the total payment for flood damage to the detached garage and the house together cannot exceed the building policy limit. For coverage to apply, the garage can only be used for parking and storage. Any other use would void this coverage; for example, if the garage has a workshop, the coverage would not apply. All other buildings on the premises need separate coverage. (Coverage is also available for owners of condominium units.) The maximum coverage available is $250,000 for residential properties and $500,000 for commercial properties.

I am shocked, shocked I tell you, to hear that an agent is [sadly] mistaken regarding flood insurance.

FWIW...There is a small variance to this. I have talked directly to FEMA about more than one structure on a policy. They indicated that it could be done as long as the policy specifically identified individual structures (and thier appropriate coverage). Sounds like that is not the case that your talking about but thought I would share as I didn't think it was possible until talking with FEMA.

Thank you all for the information. We have gone back to the agent and showed Dan's link. They are now in agreement with us. We currently have a number of buildings that are uninsured, so we're looking at requiring the borrower to obtain additional coverage (either seperate policies or one that specifically identifies coverage on each building).