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#956057 - 05/08/08 04:09 PM Flood insurance
VRV Offline
100 Club
Joined: Jun 2007
Posts: 173
We are making a loan secured by a condo. We have determined that the amount of coverage under the RCBAP is insufficient for our loan, and have requested that either the association increase their coverage or the borrower purchase a Dwelling Form Policy. The borrower's condo assn issued a letter saying the following: "As you know all the NYS lenders (Wachovia, Wells Fargo, Chase, etc) have all accepted our $10M flood insurance limits. This $10M figure was derived using a commonly accepted method of determining a flood limit known as “Probable Maximum Loss”.

Has anyone heard of this before? Am I missing something? Thanks.

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Lending Compliance
#956189 - 05/08/08 06:43 PM Re: Flood insurance VRV
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,971
Galveston, TX
Nope - RCV is the appropriate threshold.
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