---
title: "Flood Insurance: Determining Insurable Value"
description: The Functional Building Cost might be used when replacing the building with a less expensive option. The Demolition Cost - Lending
---

[Banker's Compliance Consulting Blog ](https://blog.bankerscompliance.com/en)

# [Flood Insurance: Determining Insurable Value](https://blog.bankerscompliance.com/en/flood-insurance-determining-insurable-value-1)

 Written by [Kevin Edwards](https://blog.bankerscompliance.com/en/author/kevin-edwards) | Apr 6, 2023 3:25:55 PM

When determining the amount of flood insurance necessary for a building located in a Special Flood Hazard, one of the things you need to consider is the “insurable value.” There are a variety of ways to determine this. A couple of ways are to look at the functional building cost or the demolition cost.

Kevin explains more in the video.

 

#### Video Highlights:

- The Functional Building Cost might be used when the building will be replaced with a less expensive option should it [flood](https://www.fema.gov/flood-insurance/work-with-nfip/manuals#flood-insurance).
- The Demolition Cost might be used if the building will not be replaced should it [flood](https://www.fema.gov/flood-insurance/work-with-nfip/manuals#flood-insurance).

Published  
2023/04/06

[View full post](https://blog.bankerscompliance.com/en/flood-insurance-determining-insurable-value-1)

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