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#2241091 - 08/14/20 08:11 PM FEMA Final Rules and Condo Coverage
Compliance504 Offline
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Tennessee
I've been catching up on some reading....in the FEMA Final Rules issued 7/20/20 (eff 10/1/21) there is a table listing the maximum coverage allowed for various buildings (pg 13)....

For Residential Condominiums it only references $250,000 x number of units....

Are they no longer going to factor the replacement cost/units to determine the maximum coverage allowed?

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Flood Compliance
#2241093 - 08/14/20 08:23 PM Re: FEMA Final Rules and Condo Coverage Compliance504
rlcarey Offline
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rlcarey
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Galveston, TX
What are you specially referencing??

But the maximum insurance available on a RCBAP has always been $250,000 per unit. So it is the lesser of that or 100% of the replacement costs is the number you are looking for.
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#2241095 - 08/14/20 08:41 PM Re: FEMA Final Rules and Condo Coverage Compliance504
Compliance504 Offline
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Joined: Dec 2008
Posts: 727
Tennessee
In the current FEMA Insurance Manual it states this....

Maximum Coverage
Limits
Building: The lesser of the following:
• Building’s replacement cost; or
• Total number of units × $250,000.

In the FEMA Final Rule issued on 7/20/20 it only references this in a table on page 13

TABLE 1 TO PARAGRAPH (a)—MAXIMUM AMOUNTS OF COVERAGE AVAILABLE 1

Single-Family Dwelling ................................................................ * $35,000 $250,000.
Two-to-Four Family Building ....................................................... * 35,000 $250,000.
Other Residential Building (including Multifamily Building) ........ ** 100,000 $500,000.
Residential Condominium Building ............................................. N/A $250,000 times the number of units in the building.
Non-Residential Building ............................................................. ** 100,000 $500,000.

It doesn't mention the OR replacement cost....

I just wondered if they were omitting that or if it's an oversight....

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#2241096 - 08/14/20 08:43 PM Re: FEMA Final Rules and Condo Coverage Compliance504
Compliance504 Offline
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Joined: Dec 2008
Posts: 727
Tennessee
In the FEMA Manual it's on 3-48

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#2241099 - 08/14/20 09:09 PM Re: FEMA Final Rules and Condo Coverage Compliance504
rlcarey Offline
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Galveston, TX
Do you have a link? The latest updated manual on the FEMA website is dated April 2020.
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#2241102 - 08/14/20 09:20 PM Re: FEMA Final Rules and Condo Coverage Compliance504
Compliance504 Offline
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Posts: 727
Tennessee
Randy....I'm not sure if you are asking for a link to the FEMA final rule (it's effective 10/1/21)....but here it is

https://www.federalregister.gov/doc...flect-the-biggert-waters-flood-insurance

On page 13 of the pdf. document is where they start the revision of 61.6.....I don't see a mention of the OR replacement cost factored for condos.....

I thought 61.6(b) covered that...but they have included a revision of 61.6(b) also....

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#2241105 - 08/14/20 11:50 PM Re: FEMA Final Rules and Condo Coverage Compliance504
rlcarey Offline
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rlcarey
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Galveston, TX
If you read the summary of changes for this section (page 4 of the PDF), which is changing the CFR and not the Flood Insurance Manual, you will see:

FEMA will clarify the maximum coverage limit tables in section 61.6 with non-substantive changes to improve readability and conformance with standard program terminology and terminology introduced by BW–12. This is a non-substantive change that does not alter the administration of the program but rather provides greater clarity for the reader.

So, it really represents no change in the administration of the flood program. It is solely addressing the presentation of the maximum coverage amounts in the CFR, which are not changing.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2241128 - 08/17/20 03:24 PM Re: FEMA Final Rules and Condo Coverage Compliance504
Compliance504 Offline
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Joined: Dec 2008
Posts: 727
Tennessee
Thanks so much, Randy!

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