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#242883 - 09/09/04 06:27 PM Flood on Multiple Properties
HRH Okie Banker Offline
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Joined: Jan 2003
Posts: 3,070
Oklahoma
We are doing a bridge real estate loan. Two properties currently owned and 1 new property. The two properties currently owned are in a flood zone. Do I have to require insurance on each property for the loan amount of $95,500? They are valued at $38,000 & $17,000. They now have insurance at $28,000 and $7,000 to cover existing loans being paid off with our loan. All the research I did says loan amount or max allowed. In the case of multiple properties can you insure for appraised value? All assistance is appreciated.
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#242884 - 09/09/04 06:31 PM Re: Flood on Multiple Properties
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
Both properties must be insured. Because your loan is 95.5 you will need to insure each building for their values. 38 & 17 equaling 55 in total coverage.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#242885 - 09/09/04 07:38 PM Re: Flood on Multiple Properties
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Thank you very much for the quick reply.
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Just working here until I get my letter from Hogwarts.

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#242886 - 09/09/04 08:04 PM Re: Flood on Multiple Properties
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
You're welcome. I just noticed your location. I spent the Labor Day weekend in your fair city. Actually just a few miles out of Fairmont. My grandfather was a mechanic for Vance and I spent many a summer in Enid when I was kid.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#242887 - 09/10/04 03:01 AM Re: Flood on Multiple Properties
Richard Insley Online
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Richard Insley
Joined: Oct 2000
Posts: 10,068
Toano, VA
I agree with Dan, but only if you have given us the values of the improvements. Are $38,000 and $17,000 the values of just the improvements, or the total values including land? If the building lots are worth $10,000 each, then you don't need any additonal insurance.
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