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Required Items for Private Flood Policy

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Question: 
I received a private flood policy for a commercial loan with 24 structures​ located in a flood zone. The coverage amount is over ​$​3​ million ​more than what​ is required. However, based on the definition of "Private Flood Insurance,​"​ the policy does not meet all of the requirements. Are there any best​ practices or additional guidance besides the proposed rules that are not​ finalized? We are a member in this syndicated deal and the agent bank is​ willing to accept the risk of not having all ​of the required items. Given our​ bank must perform our due diligence separately, I am not comfortable​ accepting the policy as is and am looking for guidance on something I may be​ ​missing.

First published on 03/26/2017

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