Determining Insurable Value for Flood Insurance

We’ve talked before that Flood Insurance must be in an amount equal to the lesser of:

  1. The outstanding principal balance of all loans secured by the property;
  2. The overall or “insurable” value of the property minus the land value; or,
  3. The maximum amount of insurance available under the NFIP.

“Insurable value” can be hard to nail down sometimes and we often get asked if you can use the amount of hazard insurance on the property to determine the insurable value.

David explains more in the video.

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