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#1548838 - 05/10/11 04:46 PM flood coverage vs. replacement cost
complyorelse Offline
Gold Star
Joined: Nov 2007
Posts: 448
U.S.
I'm trying to assess how other banks monitor and make adjustments to their coverage amount requirements. There is a constant cat and mouse chase when you use the hazard policy to obtain the insurable/replacement cost amount. At least the way we track it. When a renewal policy comes in for hazard we update the amount in our system (as many hazard policies have an automatic increase). Therefore, our flood report appears that we have loans that are deficient. We continue to ask the borrowers for more coverage to fill the void which works until the next renewal of their hazard.

Are we creating unnecessary work for ourselves and our borrowers? Is it okay to enter the replacement cost one time and leave it?

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Flood Compliance
#1548982 - 05/10/11 06:20 PM Re: flood coverage vs. replacement cost complyorelse
complyorelse Offline
Gold Star
Joined: Nov 2007
Posts: 448
U.S.
Our flood tracking vendor has indicated that most of the banks they work with enter the RCV one time. Just want to know if anyone has received a violation for doing it this way (one time).

Thanks.

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#1548997 - 05/10/11 06:27 PM Re: flood coverage vs. replacement cost complyorelse
zitch70 Offline
Gold Star
Joined: Apr 2001
Posts: 331
Edinburg, Texas
We have not had any adverse findings by either the auditors or examiners for the RCV entered once.

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