Need some help determining if policy form is acceptable[/font].
We have a borrower who purchased a residential townhouse unit in a Planned Unit Development ([censored]). The [censored] Association documents provide the HOA will purchase all insurances, including flood, for the homeowners. The property is in a SFHA and coverage was written on a RCBAP. There are 6 units in the building and the RCV listed on the Declarations Page is considerably less than the RCV on the appraisal report.
The NFIP Manual clearly states when a HOA by-laws require the HOA to purchase bldg. coverage for its members, the policy must be written in the name of the building owner with the HOA listed as an additional insured.
Since RCBAP form is only for a condominium, do we have to get our borrower to obtain a Dwelling Policy ?