I want to make sure I'm calculating this correctly before I escalate. We have 4 buildings (two single family, one 5+ unit residential, and one commercial) as collateral, all in SFHA. Contents taken as collateral for all of the buildings. Contents were not assigned a value by the Bank/lender (which I know is already a problem).

Loan amount: $1,200,000
RCV: $1,000,000 (total of all 4 buildings per insurance company) PLUS 'x' (value of the contents for all 4 buildings)
Maximum NFIP: $2,300,000 (2 residential plus contents on each- $700k; 1 "other" residential plus contents- $600k; 1 non-residential plus contents- $1,000,000)

Coverage: building- $1,000,000; contents- $0

First issue is not having a value for the contents so we cannot truly calculate the RCV. Second issue is the contents are not insured, and because of this, the third issue is the total coverage is inadequate. Am I telling any lies here?

Unless one of these is a primary residence, without knowing the ACV rather than the RCV and the ACV of each specific building, it is impossible to tell if the building coverage is adequate. Like you said, you have an outstanding content issue.

You shouldn't use RCV for the 5+ residential and commercial building. As Randy stated, you shouldn't use RCV on the single family dwellings either - unless it is a primary residence, but there are other conditions that must be satisfied too. You should use ACV for all of your buildings unless they are primary dwelling, fully insured and a single unit.

If you don't understand the differences between ACV and RCV, read the article entitled "Flood Insurance Insurable Value" found at our website: http://www.bankerscompliance.com

Go to the "Resources" page and then "Free Downloads". You'll find the article toward the bottom under "Articles". Be sure to read the "NFIP Policies" section on page 3 of the article. This will help you understand why type of policy you need (dwelling vs. general).

Once you understand this and get the correct insurance value (RCV, ACV or other value), you can then calculate proper coverage. You're still going to need some amount allocated to contents, however.