Auditing a loan that requires flood insurance and it is making my head hurt!!! Bank has three separate loans secured by a resort property that total over $4,000,000. Under NFIP the max building coverage allowed is $500,000 for commercial properties - this isn't a max per loan? Under NFIP we could only have one policy on this property for $500,000...not a policy for $1,500,000 (since there are three loans)? And are there max limits regarding private policies for this type of property?

Are you trying to determine the minimum coverage for the loan?

Does the loan secure the entire resort (all units) or only some of the units?

https://www.bankersonline.com/tools/151072

Are you trying to determine the minimum coverage for the loan?

Does the loan secure the entire resort (all units) or only some of the units?

https://www.bankersonline.com/tools/151072

Just trying to ensure accurate flood insurance coverage for this property.

And secured by the entire resort, which happens to be one building. We have three separate loans secured by this building/resort.

One building - one policy for $500K, if the insurable value is more than that.

Yep, Randy nailed it. Prudence would likely suggest more coverage (surely this thing is >$500m), but you've accomplished the minimum for FDPA with $500M per building.