Risks-Flood Insurance & Not Using Insurable Value

We recently had a change in staff and are cleaning up lending procedures. In doing so we noticed that our flood procedures do not include insurable value. We only calculate flood insurance on the Maximum allowed or the loan amount. Basically we could be requiring the customer to obtain more insurance than what is needed. I would argue that we are in compliance; however, what other risks do you see in not using the insurable value. We are not sure why are former employee never used insurable value.