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#1644109 - 12/29/11 03:13 PM Force Place Letter for $50,000 Deductible
YosemiteSamIAm Offline
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Joined: Jan 2004
Posts: 2,795
Guess
We found a flood policy that has a $50,000 deductible. Should we send a 45-day letter as if the insurance is "inadequate"?
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Flood Compliance
#1644189 - 12/29/11 04:18 PM Re: Force Place Letter for $50,000 Deductible YosemiteSamIAm
Wonder Why? Offline
Member
Joined: Jul 2009
Posts: 70
Maybe......
There are isolated instances that this high of a deductible could be appropriate based on the collateral value, amount of coverage and capacity of the borrower.

If your bank considers the insurance inadequate a 45 day letter is most definitely in order.

On the other hand, if Management is willing to accept the risk and considers the deductible appropriate I would document the loan file indicating this because examiners will most likely question a deductible this high.

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#1644192 - 12/29/11 04:21 PM Re: Force Place Letter for $50,000 Deductible YosemiteSamIAm
Tom Easterday Offline
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Joined: Oct 2000
Posts: 140
Orange County, CA
How much is the flood coverage?
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Tom Easterday, CRCM Opinions stated are my own and not necessarily those of my employer!

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#1644389 - 12/29/11 08:46 PM Re: Force Place Letter for $50,000 Deductible YosemiteSamIAm
YosemiteSamIAm Offline
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Guess
Commercial loan, $332,800 in coverage on one bldg.
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#1645478 - 01/03/12 08:03 PM Re: Force Place Letter for $50,000 Deductible YosemiteSamIAm
YosemiteSamIAm Offline
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Joined: Jan 2004
Posts: 2,795
Guess
Bump for reply.
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#1645492 - 01/03/12 08:00 PM Re: Force Place Letter for $50,000 Deductible YosemiteSamIAm
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
Joined: Dec 2000
Posts: 21,293
Is this a strong customer that could easily kick in the $50,000? That is what must be considered.
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#1645493 - 01/03/12 08:14 PM Re: Force Place Letter for $50,000 Deductible YosemiteSamIAm
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Wonder Why already answered your question.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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