Just thought I'd get an idea how other institutions determine flood insurance amounts.

Although my first choice is cost from appraisal...I have employed any and all means available to get that number depending on what i have on hand!

You ain't jokin Joker!! lol Ditto for me too!!

I prefer cost from appraisal, and rely on the insurance replacement cost when that's not available.

I don't think the regulators will let you get away with appraisal minus land. What you are doing is taking market value less land, and market value may not bear any resemblance to RCV. I think it can lead to underinsuring the property.

I agree. Market vs land is one method that is just not happening!

Is Hazard Insurance even an option anymore?

It is one method that often works. The problem with HI is that it does not consider the value of the foundation.

For those using the replacement cost value from the appraisal, are your banks paying the appraisers to perform the extra valuation method (RCV is generally not included in a regular residential appraisal) on the appraisal?

And, if you are, are you pushing that cost onto the consumer or absorbing it yourselves?

Anyone?

Our appraisals generally include the cost approach, and yes, that cost gets passed to the consumer for us.

What methods are you using to determine the value of the foundation? We currently verify with the insurance agent.

It's an option in the final Q&A #9.

-Appraisal based on cost-value approach
-Construction-cost calculation
-Insurable value used in hazard policy
-Any other reasonable approach that can be supported