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#1885783 - 01/13/14 03:03 PM Insurance Req'd if RCV is <$5000
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
I know that flood is not required if the original loan amount is <$5000 and the repayment period is < 1 yr; however, what if the RCV of the structure is <$5000 and the deductible is almost as much as the RCV? Would flood insurance be required? In this case, the loan amount is >$5000 and the repayment terms are > 1 yr. The collateral is a commercial building and adjacent building (which has a RCV of approx $4000).

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Flood Compliance
#1885808 - 01/13/14 03:22 PM Re: Insurance Req'd if RCV is <$5000 Many Hats
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,396
Galveston, TX
The replacement cost on two commercial buildings is $4,000???
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#1885821 - 01/13/14 03:36 PM Re: Insurance Req'd if RCV is <$5000 Many Hats
Many Hats Offline
Platinum Poster
Joined: May 2008
Posts: 915
Orlando, FL
No...the adjacent building (which I believe is a laundry facility) has a RCV of approx $4000.

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#1886167 - 01/13/14 10:32 PM Re: Insurance Req'd if RCV is <$5000 Many Hats
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 83,396
Galveston, TX
I can't hardly build a shed to store my lawn mower for $4,000 - a laundry facility with a RCV of $4,000 - I don't believe it.

Regardless. You should be looking at ACV for commercial structures. A $4,000 building is still insurable.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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