Commercial flood coverage

Posted By: mdog76

Commercial flood coverage - 02/08/19 04:15 PM

On commercial property, can depreciation be taken off the value needed to be covered by flood insurance to get actual cost?
Posted By: rlcarey

Re: Commercial flood coverage - 02/08/19 05:33 PM

I don't understand your question as presented. But Actual Cost Value = Replacement Cost Value minus Depreciation.
Posted By: David Dickinson

Re: Commercial flood coverage - 02/10/19 03:58 PM

Coverage for non-dwelling properties (and even some dwellings) won't pay above Actual Cost Value (ACV). As Randy defined above, ACV is the Replacement Cost Value (RCV) less physical depreciation.

You might find our article "FLOOD: Flood Insurance Insurable Value Article" helpful. You can download it for free from our website. Go to:
https://www.bankerscompliance.com
Free Downloads (on top menu bar)
Lending Tools (box on right)
You'll see this position paper listed.