Well I guess if we are trying to underwrite the risk portion to make sure borrower can handle the higher deductible... if only 1 out of the 2 buildings are damaged in the flood, if the deductible is pro-rated over 2 buildings since they are scheduled on the policy, meaning deductible will be less than the $50,000 total. OR
Last edited by Chocaholic; 12/03/14 06:43 PM.
I guess management wants to make sure that each structure does not have its own $50k deductible because of the scheduled property.
However, based on other types of insurance, a deductible would need to be satisfied no matter how much of the loss or whether only one structure vs two are damaged. Just wanting to confirm my understanding is not flawed.