Scenario #1
Loan amount: $2,150,000 Max available (all non-residential buildings): $500,000 * 5 = $2,500,000
ACV Building 1: $687,828.00; ACV Building 2: $18,480; ACV Building 3: $5,598.40; ACV Building 4: $17,920;
ACV Building 5: $11,469
ACV TOTAL: $500,000 + 18,280 + $5,598.40 + $17,920 + $11,469 = $553,827.40
Adequate insurance coverage would be 5 policies with total coverage = $553,827.40
Scenario #2
Now say that Building 1 is actually 3 separate buildings:
Loan amount: $2,150,000. Max available: $500,000 * 7 = $3,500,000
ACV building 1: $344,100; ACV building 2: $156,240; ACV building 3: $187,488; ACV building 4: $18,480;
ACV building 5: $5,958.40; ACV building 6: $17,920; ACV building 7: $11,469
ACV Total: $344,100+$156,240+$187,488+$18,480+$5,958.40+$17,920+$11,469=$741,655.40

Do these look right? It just seems weird to me that because building 1's ACV is higher than the Max it would translate to nearly $200,000 less coverage than scenario 2 which is the same property but the main building separated into three.

It is all based on the insurable portion of the ACV. The three buildings in your example, the ACV just adds up to more than $500,000.

I do have this calculated correctly though, right? I'm confused by your answer.

Without pulling out an actual calculator, it looks correct to me.

Can't you do it in your head??? Actually, I was more concerned about the approach than the actual math. I appreciate your time