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#2005209 - 03/31/15 02:58 PM Flood Insurance - contents
mdog76 Offline
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Joined: Jan 2007
Posts: 645
I'm just making sure, but if we take contents as collateral that require flood insurance (production machinery), the amount needed would be the value of machinery less the depreciation correct?

Thank you

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Flood Compliance
#2005214 - 03/31/15 03:04 PM Re: Flood Insurance - contents mdog76
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
I assume that you mean if you take a building and contents?

Yes, content insurance is based on ACV.
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#2005221 - 03/31/15 03:14 PM Re: Flood Insurance - contents mdog76
mdog76 Offline
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Joined: Jan 2007
Posts: 645
Yes, the building is taken as well. We have a loan and flood insurance on the building already. This new loan is to purchase the production machinery so very little depreciation should be deducted I assume.

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#2005233 - 03/31/15 03:35 PM Re: Flood Insurance - contents mdog76
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,325
Galveston, TX
If they aren't on one loan (building and contents), then contents coverage is not required by regulation. S&S issues may prevail however.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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