Thread Options
#2243257 - 09/29/20 03:42 PM Coverage amount - NFIP max on a private policy
Dodge Offline
100 Club
Joined: Mar 2010
Posts: 237
Can you use a NFIP maximum when determining coverage amount on a private flood insurance policy?

Return to Top
Flood Compliance
#2243261 - 09/29/20 04:06 PM Re: Coverage amount - NFIP max on a private policy Dodge
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,948
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.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2243266 - 09/29/20 04:12 PM Re: Coverage amount - NFIP max on a private policy Dodge
Dodge Offline
100 Club
Joined: Mar 2010
Posts: 237
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

Return to Top