As collateral for a loan we are taking two separate properties, two different addresses (they are not located next to each other) each with a residential structure. It is my understanding that we should calculate the required amount of flood insurance for each structure separately, making sure that each structure had coverage that was the lesser of the replacement cost value (rcv), minimum amount required or loan amount. For example, one structure has a rcv of $212,000, the other has a rcv of $235,000 our loan amount is $200,000. I believe that each structure on the separate properties should have $200,000 in coverage.

From a regulatory perspective, you need $200,000 split between the two properties. Safety and soundness considerations could be different.

Can you tell me where I can locate that guidance? I am sure that I will need to "show" that information to someone. Thank you for the response.

Q&A 14:

https://www.bankersonline.com/sites/default/files/tools/flood_faq_2011_10_17.pdf