I just need clarification: Is the flood insurance coverage amount based on the replacement cost per Hazard Insurance Policy or the Appraisal value of structure?

Thanks

Neither. Flood insurance is based on "insurable value" - as one of the 3 components. Hazard insurance and flood insurance are 2 different animals that result in 2 different amounts. Appraisal value (I hope you're referring to the cost approach and not market value) is what you're after to determine RCV, but what if you're trying to determine ACV because the building doesn't qualify for RCV payout? Plus, most appraisers don't give a very good RCV or ACV.

In other words, this is a complicated topic with a complicated answer. To get a better understanding, read the article "Flood Insurance Insurable Value" at our website:
http://www.bankerscompliance.com/compliance-resources/free-downloads.htm