Posted By: MEB
Multiple Buildings - 1 Residence/2 Barns - 06/12/20 05:43 PM
Property includes 1 residential structure and 2 barns - all are in the flood zone. (Note: The residential structure is a hunting lodge that is rented out through VRBO and also on a per bed basis during hunting season.)
Loan Amount = $700,000
Maximum NFIP = $1,250,000
Residence - $250,000
Barn 1 - $500,000
Barn 2 - $500,000
Total Insurable Value = $1,050,000
Residence - $700,000
Barn 1 - $100,000
Barn 2 - $250,000
I believe that the required amount of insurance is $700,000 since that is the "lesser of". It is my understanding that we can allocate the $700,000 in varying amounts. However, we cannot allocate more than $250,000 to the residence and would need to allocate the remaining $450,000 between the two barns, even though their insurable value is only $350,000. Is that correct?
Loan Amount = $700,000
Maximum NFIP = $1,250,000
Residence - $250,000
Barn 1 - $500,000
Barn 2 - $500,000
Total Insurable Value = $1,050,000
Residence - $700,000
Barn 1 - $100,000
Barn 2 - $250,000
I believe that the required amount of insurance is $700,000 since that is the "lesser of". It is my understanding that we can allocate the $700,000 in varying amounts. However, we cannot allocate more than $250,000 to the residence and would need to allocate the remaining $450,000 between the two barns, even though their insurable value is only $350,000. Is that correct?