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.
Don't make me say, "I told you so!" Sincerely, your friendly Compliance Officer.