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Flood for Condo-No Replacement Cost on Building

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Question: 
The maximum amount of flood insurance that can be purchased on a condo is 80% of the replacement cost of the building or the total number of units in the condo building times $250,000, whichever is less. What if there is no documented Replacement cost on the building, should we use the appraisal value as the basis of our calculation?
Answer: 

Your first statement is incorrect. They can insure the condo at 100% of the RCV. Second, if this is a RCBAP, the replacement cost is required to be shown on the declaration page. An appraisal on one condo unit cannot be used to calculate the RCV on the entire complex. Also, I have never seen a replacement cost on a condo unit appraisal.

First published on 03/17/2019

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