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#2138368 - 07/17/17 03:54 PM Contents coverage question
Bec Offline
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Bec
Joined: Jul 2010
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The Great White North
Two questions,

Loan is for $1.3MM. One building secures the loan with an ACV of $1MM. Contents do secure the loan and the value assigned to them is $1.9MM.
So for flood coverage, it would be the lesser of the three: Max available: $500,000, ACV, or loan amount.
In this scenario the Max Available would be the lesser of the three.
For coverage do I have to have a policy that has dwelling + contents with coverage totaling $500,000? Or must the policy max out at the building level for $500,000 and contents for $500,000 both?

Next question: Why doesn't the coverage form on this website include contents in the equation? Just curious. Not that I am whining about it because I certainly appreciate the form!!
Last edited by Bec; 07/17/17 03:56 PM.
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Flood Compliance
#2138373 - 07/17/17 04:07 PM Re: Contents coverage question Bec
rlcarey Offline
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rlcarey
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Galveston, TX
Both have to be covered - $500K for building and $500 for contents. As that is the maximum available.
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#2138395 - 07/17/17 05:00 PM Re: Contents coverage question Bec
Bec Offline
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Bec
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Got it! Thank you. So if our loan amount was $500,000 we would only need $500,000 between the dwelling and contents, correct?
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#2138398 - 07/17/17 05:04 PM Re: Contents coverage question Bec
rlcarey Offline
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rlcarey
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Galveston, TX
That is correct.
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#2138403 - 07/17/17 05:14 PM Re: Contents coverage question Bec
Bec Offline
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Bec
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Just want to make sure I am understanding the answer you gave above:

In this case:
Loan amount: $1,300,000
Structure ACV: $1,000,000 + contents $1,900,000 = $3,200,000
Max allowed: $500,000 structure + $500,000 Contents = $1,000,000

Therefore $500,000 structure and $500,000 contents will be the minimum amount of flood insurance required.
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#2138404 - 07/17/17 05:17 PM Re: Contents coverage question Bec
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,359
Galveston, TX
That is correct
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#2138420 - 07/17/17 05:48 PM Re: Contents coverage question Bec
Bec Offline
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Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Ahhhh so much goodness. Thank you for your help Rlcarey.
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