Former loan customers redid their flood loan to borrow more money, so the flood coverage had to be increased. They increased it just equal with the amount that they are borrowing, not including all the fees. So now that the loan is on the system the principal amount is just a little bit more and not quite enough flood coverage in place. My question is do we go by the original principal amount that they were asking for or make them increase the coverage now that the fees raised the amount of the loan?
Any help would be appreciated.....Thanks!

What fees? If they are late fees added after the loan closed, then "no". If they are refinancing fees (and included in the new loan amount) then the loan amount includes this higher amount and must be factored into the calculation for determining the proper amount of insurance.

What does the loan note say?

I agree with David. If the borrower requested $150,000 and due to financing closing fees the loan will be $155,000 then the $155,000 is the amount of flood insurance needed, assuming the insurable value of the building is not less than the $155,000.

I have a question I sent my 45 day & 30 day notice of Flood Insurance Due. The 45 days expired 6-1-2017, we received flood insurance to start 6-16-17. My questions is what can we do about Flood insurance from 6-1-2017 to 6-16-2017?
thank you

You can force place and charge the borrower the 15 days worth of premium, eat the premium or ride it out. Riding it out is a risk based decision because you would technically be out of compliance.

Thanks you Dan I think we will charge the borrower the 15 days.