We have a loan secured by 8 properties (RE 1-4 family not owner occupied) . 4 of the 6 loans are in the flood zone. Loan Amount $406k for all 8 properties. Appraisal value of 8 properties $561,000.

Do I use the $ amount listed for Dwelling Coverage on Flood Insurance or Dwelling Replacement Cost coverage? I am not sure which one I pick to coverage the loan balance?

I really am having a hard time with your question. What does "4 of the 6 loans are in the flood zone" mean?

If your question is about insurable value, on NOO properties the insurable value is based on ACV and not RCV.

2 loans are not in a flood zone but still collateral on the loan that make up the $406k

You started by saying you have one loan secured by 8 properties. When you later say "4 of the 6 loans are in the flood zone" did you mean to say "4 of the 6 properties are in the flood zone"? And when did 8 properties become 6 properties?

Please go back and restate your question.

How are loans collateral? Loans are not in or out of a flood zone - buildings are. You have loans and you have collateral that secures the loans. I really do not understand what you are trying to say. .

John I apologize its been a day -

We have 1 loan secured by 8 mortgages. 6 of the 8 mortgages (1-4 family non owner occupied) are in a flood zone.

Loan balance $407,438
Insurance Dwelling Coverage Amount for all loans $345,000
Insurance Dwelling Replacement Cost for all loans $802,000
Appraisal Value of the 6 properties in flood zone $404,000
Appraisal Value of the 8 properties total $691,000

Sorry this is all new to me so I am trying my best - I appreciate the time to answer and help thanks