Origination error

Five buildings on one property; only three have flood insurance. The combined amount of the three policies exceeds the loan balance. The coverage amounts on the three buildings are odd; one has coverage exceeding its value, the other two have substantially less than the value. No required amounts on each building were given, these were the policies provided. Seems like the lender (don't get me started) just added them up and accepted them since combined they were more than the loan balance. From purely a flood regulation standpoint - not safety and soundness - should we ask for the amounts to be readjusted?

Meanwhile, it's about time to forceplace on the two without policies; how much coverage should be force-placed so they have "some" coverage? Our deductible is $2500, so the policies would have to exceed that amount.

1. Each building in a SFHA must have some coverage.
2. You should never have more than the insurable value on any building.
3. Combined, you must have the lesser of:
a. Loan(s) balance;
b. Insurable value of all buildings in a SFHA; and
c. Max available under the NFIP.

If you don't have those 3 conditions met, you don't have "adequate" insurance, so you should have them adjusted by sending notification as soon as possible.

I can't say how much you should force place without all of the details (listed in 3 above).