Flood on Multiple Properties

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.

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.

Thank you very much for the quick reply.

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.

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.