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#2264699 - 01/12/22 09:47 PM Layered Private Policies - Discretionary
MLundy Offline
Junior Member
Joined: Sep 2020
Posts: 25
We have a loan request to finance a condo purchase for an individual. The 356 unit building is in flood, and rather than an RCBAP policy the Condo Assoc obtained 7 different private policies w/flood endorsements through a "layered program", and do not include "Mandatory" clause. The total of the policies meets the FEMA required coverage for the building. None of the policies actually indicate specific unit numbers. I've never seen anything like this. Has anyone else? Thoughts?

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Flood Compliance
#2264702 - 01/13/22 12:39 AM Re: Layered Private Policies - Discretionary MLundy
KwC Offline
Member
Joined: Jul 2019
Posts: 55
Yes, this is common with residential condominium in New York. Off my head, there was a loan where we received a primary private flood policy with 9 excess private flood policies (total 10 policies). We had to review all the policies because none of them have the compliance aid statement (what a pain!). The total unit usually does not appear on the policy. What we did was, take the total building coverage amount divided by the total units. If the amount is $250,000 or greater per unit, then you're good to go. Make sure you document everything.

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