I am seeing a recent trend in private flood insurance. A company (our customer) carries a policy that covers multiple locations. While the per occurrence coverage limit and per occurrence deductible may be in line with NFIP standards, there is also an aggregate limit given. I'll typically see an ACORD Commercial Form with property specific info, but not a full schedule of covered locations. Has anyone else experienced this?

An example would be:

Our customer is McDonald's. We are financing one McDonald's store in a SFHD. The per-occurrence coverage limit is $1,000,000 and the deductible is $50,000... BUT there is annual aggregate limit among all covered locations (unsure of how many-possibly dozens) of $2,000,000.

My thought is that the $2,000,000 aggregate limit is only sufficient to cover 4 locations at the NFIP max of $500,000 should 4 or more locations flood in a single year. My gut says that this is not acceptable private insurance, given the unknown number of covered properties.

NFIP Flood policies do not have Aggregate Limits. If the standard you are using is "at least as broad" as NFIP, this would be less broad.

No matter how many locations are included (even if its just 4 - even if its just 1), there still is no Aggregate Limit on an NFIP policy and this private flood policy would not be "at least as broad."

I am an agent, not a banker;)

Yes - I was using "at least as broad" as a standard. Thanks for your response.