Thanks again for your help.
Well our Commercial Lender feels that no insurance is needed since only a corner of the building is in a flood zone.
Our Loan Admin folks think the $500,000 isn't enough.
It's been asking more and more questions to go deeper. These folks just don't want to carry flood insurance. We aren't the first bank to tell them no and am sure won't be the last.
Turns out they currently have unsecured personal financing at another bank. Our bank won't do large unsecured loans like that.
We just brought on this commercial lender and his portfolio is mostly doctors/professionals.