As you probably already know, the flood rules have this quirky requirement that says you need to obtain flood insurance in an amount sufficient to cover the lesser of three things: 1) the principal balance of the loan (or loans if there are multiple properties secured by the property); 2) the “insurable value” of the property (this is a complicated topic); or, 3) the maximum insurance available under the National Flood Insurance Program ($250,000 for most residences and $500,000 for most non-dwelling properties).
Remember this “lesser of three” meets the regulatory coverage requirement. However, that doesn’t always mean you end up with adequate coverage from an insurance or safety and soundness standpoint.
Listen to the video as Dave walks you through a scenario on how to determine the amount of flood insurance coverage and what that could mean if a flood loss is incurred.
These are just the types of flood insurance topics that we will cover in our two-part Flood Insurance webinar series on March 19th & March 26th. We will walk you through flood insurance from A to Z in plain English and help demystify these complicated requirements. See you then!
David’s banking career began as a field examiner for the FDIC in 1990. He later became a Compliance Officer and Loan Officer for a small bank. In 1993, he established Banker’s Compliance Consulting. Along with his amazingly talented Team, he has written numerous compliance articles for prestigious banking publications and has developed compliance seminars that Banker’s Compliance Consulting produces.
He is an expert in compliance regulations. He is also a motivational speaker and innovative educator. His quick wit and sense of humor transform the usually tiring topic of compliance into an enjoyable educational experience. David is on the faculty of the American Bankers Association National Compliance Schools and has served on the faculty of the Center for Financial Training for many years. He also is a frequent speaker at the ABA’s Regulatory Compliance Conference. He is also a trainer for hundreds of webinars, is a Certified Regulatory Compliance Manager (CRCM), and has been a BankersOnline Guru for many years. The American Bankers Association honored David with their Distinguished Service Award in 2016.
David and his wife Karen have 3 adult children and 2 grandsons (none of whom live at home!) and 3 cats (of which Dave is allergic … the cats, not the children!). They live on a lake in Nebraska and when possible he can be found fishing or making sawdust in his shop. David plays the guitar & piano and enjoys singing with Karen. They occasionally lead worship at their church.