Calculating Flood Coverage if Multiple Collateral

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Question:

We have a property that is in the flood zone and is collateral on three loans. On two of those loans there is multiple collateral. How do we calculate the coverage amount needed?

Answer:

It would be the lesser of the insurable value of the property in the special flood hazard area, the amount of the three loans added together or the maximum amount of insurance available for the property in the special flood hazard area.