When it comes to flood insurance coverage, you have to look at the “lesser” of three things…the loan balance, the insurable value, and the maximum available through the National Flood Insurance Program. While the loan amount and the NFIP limits are pretty easy to come up with, determining the insurable value can be troublesome. This is because there isn’t just one way to determine insurable value.
Listen to the video as Dave walks you through some of the confusion.
This is just one of many 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!
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).