We have a $800,000 loan against an apartment building located in a flood zone.. simple enough - ins. coverage s/b $500,000. However, the wrinkle is the building owners also live in the building in one of the apartments as their primary residence...So does this mean, coverage should only be $250,000? Our loan dept. is saying based on what they were told $250,000 is correct and I do not agree. Am I mistaken, if yes where can I find support?

Help is greatly appreciated- thank you!

Occupancy has no impact on the type of building that it is.

Thank you!