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Flood for Condo-No Replacement Cost on Building

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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?

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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