We have a commercial loan secured by multiple properties, one of which is in a flood zone. I know that the insurable value is less than the loan amount and the NFIP maximum, but I can't decide if the insurable value is RCV or ACV, and the two amounts differ by about $40,000. In this situation, the commercial customer has a loan on a property that is being sold via land contract. The property is occupied by the buyer, but who is the owner? Is it owner-occupied? Our customer, the seller in the land contract, is purchasing the flood insurance, if that matters. Thank you in advance for your help.
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Don't make me say, "I told you so!" Sincerely, your friendly Compliance Officer.