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#2243257 - 09/29/20 03:42 PM Coverage amount - NFIP max on a private policy
Dodge Offline
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Joined: Mar 2010
Posts: 261
Can you use a NFIP maximum when determining coverage amount on a private flood insurance policy?

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Flood Compliance
#2243261 - 09/29/20 04:06 PM Re: Coverage amount - NFIP max on a private policy Dodge
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 82,469
Galveston, TX
You mean is a private policy of $250,000 or $500,000 depending on structure type all that is needed under the regulation - Yes. Over and above that is a safety and soundness issue.
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#2243266 - 09/29/20 04:12 PM Re: Coverage amount - NFIP max on a private policy Dodge
Dodge Offline
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Joined: Mar 2010
Posts: 261
Loan secured by a commercial warehouse that is the flood zone.
Loan amount is $600,000
ACV: $670,000
NFIP maximum: $500,000

The customer has a current private flood insurance policy but the coverage needed to be increase. On my coverage worksheet, I concluded $500,000 was the coverage amount required. However, I started over thinking this and thought I couldn't use the NFIP maximum since it was a private policy.

Thanks for the clarification

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