Posted By: Bec
Flood Insurance coverage options - 11/19/13 04:41 PM
A lender just spoke with an insurance agent regarding flood insurance. The insurance agent told the lender that FEMA no longer allows coverage for the lesser of the three, loan amount, RCV, Maximum $250,000. Her explanation is that FEMA "lost their shorts" in the current disasters so now they require minimum RCV. Anyone hear of this?
Posted By: Dan Persfull
Re: Flood Insurance coverage options - 11/20/13 03:38 PM
The loan officer needs to talk to an insurance agent that knows what they are doing and after doing so might want to report the first one to the state's DOI for forcing clients to purchase more insurance than might be required or necessary.
Posted By: RR Joker
Re: Flood Insurance coverage options - 11/20/13 04:59 PM
I'm absolutely not arguing about this...just commenting. It's never really made sense to me to include loan amount as a factor. It makes much more sense to cover for RCV/ACV or max available and if the max is way under the value of your structure, I'd opt for private insurance if at all possible.
All of that is assuming I would want to get back what my building is worth, whether I rebuilt on same spot or moved. It's also assuming my property was 'totaled'...which in a high risk area could well happen.