Refinancing a loan that secured by a dwelling in the flood zone. All the value is given to the land. The appraiser did include the cost approach of the dwelling. He gave the replacement cost of $96,800 and the depreciation $96,800, so the ACV is $0.

The previous bank had a force placed policy for $20,000 in coverage. Any recommendation on how to proceed on calculating coverage amount? The loan amount is $300,000

If you don't already have it, ask for a copy of the hazard policy on the structure.

No hazard policy since the land value alone fully covers the loan. Could I go by the $20,000 since that is what the previous bank did for the force placed policy, and its above the ACV? Confused by this one.

And that appraisal passed your appraisal review process? Somebody was asleep at the wheel. How can you depreciate a structure down to $0. There has to be at least some salvage value.