Mortgage closed a condo loan that is 466 square feet. They are saying because the square footage is less than 500 square feet that the loan amount for $90K is OK with Flood Insurance of $80K. Did I miss something in the Flood Insurance regulations?
Thanks...

No - but what is the replacement cost of the condo - we seem to be missing one of the three required figures to calculate the amount of insurance required. We need the replacement cost and the amount of coverage from the NFIP declaration page for the building and the number of units.

Out of curiosity - who are 'they'?

"They" is a Mortgage, of course. 16 units, $1,379,500, Replacement cost same - $1,379,500. ($86,218.75). Loan amount $89,500.

I assume "mortgage" is the mortgage department.

You still didn't provide the amount of flood insurance coverage but it appears you are $6,218.75 short on the minimum required flood insurance coverage under the regulation.

The $1,379,500 is the amount of the insurance coverage - condo. Mortgage is the Mortgage Department, yes.

If the condo is covered at 100% of the replacement costs on the declaration page, the condo is fully insured and you are done.

I agree with Randy. I didn't catch that the $1,379,500 was also the amount of flood insurance coverage.

Thank you - was just thrown by the mortgage lenders throwing in square footage as the reason...

I think they might need a smidge more training.