Thread Options
#987497 - 07/03/08 02:33 PM Replacement Cost Value and non condiminium loans
CaseyBoo30 Offline
Gold Star
Joined: Feb 2007
Posts: 262
Winchester, KY
Does the replacement cost value only apply in cases where the loan is for a condiminium or can the replacement cost value also be used in determining the adequacy of flood insurance for 1-4 family residential property?

Return to Top
Lending Compliance
#987520 - 07/03/08 02:44 PM Re: Replacement Cost Value and non condiminium loans CaseyBoo30
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,644
The Swamp
Any time you have owner-occupied (more than 80% of the time) residential property.

Let me add...the jury is still out on this...many of us recognize the above, however the definition of "insurable value" IS 100% RCV, regardless of commercial/residential, etc. However, loss payment provisions differientiate between ACV and RCV based on the above criteria.

Hopefully the final Q&A's will address this discrepancy as many of us have pointed it out in our comment letters.
Last edited by RR joker; 07/03/08 02:46 PM.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top

Moderator:  Andy_Z