We have a 1st lien on a property that is located in an SFHA. If we take a 2nd lien on the same property, and the flood insurance is already for the max amount of insurance available through the NFIP, do we need to be listed as both 1st & 2nd mortgagee on the flood policy, or would it be sufficient to be listed as 1st mortgagee on the policy with no one listed as 2nd mortgagee, since we have both the 1st and 2nd lien?

Is your first lien equal to or in excess of the max amount of insurance available through the NFIP?

Not sure it really makes a difference as long as you are listed as a mortgagee.

My two cents: Plan for the future. If the borrower refi's the 1st, you will be removed when the new lender is added. Safer to be listed twice (now), than to have to account for process-triggers to get the bank added back to the policy (then).

If that happened, and the second was not also being paid off, adding us to the flood policy as a subordinate lien holder would be a stipulation for us subordinating the debt.