Will need help to calculate the Flood Coverage requirement with Individual Condo Unit Mortgage 900K which condo doesnt eligable under RCBAP.
The condo towers that make up these projects are individual residential condo projects. The commercial space (restaurants, Garages, Retail) area below is not part of the residential projects. However, from an insurance perspective and per FEMA "The National Flood Insurance Program (NFIP) rules only allow one policy per structure. Therefore, because the commercial space is the foundation for the these towers only one building policy is allowed for the entire structure.
Since the residential portion is less than 75% of the total floor area, it is not eligible for a RCBAP flood policy thru NFIP.
I have attached evidence of the 2 policies the associations have in place. One is a non-residential policy thru NFIP for max coverage permitted of 500,000. It has a deductible buyback discount. The deductible shows to be 5,000.
The second policy is their property policy which has an endorsement providing a sub-limit of coverage in amount of 160,000,000 with 500,000 deductible. (This coverage exceeds the 250,000/unit. There are a total of 448 units. 250,000 x 448 = 112,000,000. Replacement cost per the NFIP dec pg is 418,622,829.) We are told in the event of loss they would use the NFIP policy proceeds to pay the deductible on the other policy.
QUESTIONS:
1. Is an endorsement on the property policy that provides a sub-limit of flood coverage acceptable....or....does flood coverage need to be a separate flood insurance policy?
2. Is the buyback deductible acceptable ?
3. Our guideline is max $25,000 deductible, assuming the 500,000 deductible is excess the guideline limit and not compliance with FEMA?