I have received contradicting information from NFIP. We have a commercial loan to construct 3 townhouses connected, load bearing walls. It is 1-4 residential. Do you insure each unit for the appropriate amts up to $250,000 or the entire single structure for $250,000? I have been told both ways.

Wouldn't it depend upon how the units are to be titled? Are they going to be owned by one legal entity and rented out, are they going to be owned by 3 individuals fee simple, is it a condo form of ownership? That would all make a difference.

This is insurance for the interim construction loan to the builder. When the units are sold the individual purchasers will get their own coverage.

I suggest a call to FEMA or a private insurer in your area to aks what coverage is available in this situation. If coverage is available for each unit, then I think you are required to consider the $750k as the maximum amount of available insurance for your coverage determination. If individual coverage is not available, then the coverage limit is obviously going to $250k.

I also think you will have to place some coverage on each unit. See Q&A Part II, Question 7.