Flood Insurance Dwelling Policy

When it comes to flood insurance, lenders need to have an awareness of the type of policy they require and what it covers. For instance, one of the key features of a Dwelling Policy is that it will pay replacement cost value (RCV) but only if certain conditions are met. RCV is what it takes to get your home back to the way it was based on what the materials cost today. If the conditions aren’t met, then a Dwelling Policy will only pay actual cash value (ACV) which factors in depreciation. If a lender knows the property will not meet the conditions, it doesn’t make sense to have the borrower buy a Dwelling Policy because it will never pay RCV.

David explains more in the video.


Flood Insurance Resources!

Video Highlights:

  • A Flood Dwelling Policy pays replacement cost if certain conditions are met.
  • For example, the property must be the borrower’s primary dwelling; it must be “fully insured” and be a single-unit dwelling.
  • If the conditions are not met, the policy will pay the actual cash value.

Published
2023/07/24
David Dickinson

David Dickinson

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 transforms 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 three adult children, four grandchildren (none of whom live at home!) and two cats (of which Dave is allergic … the cats, not the children!). They recently moved to an acreage outside of Lincoln, Nebraska where he gets to play with his tractor. When possible David can be found fishing, making sawdust in his shop, or playing the guitar and piano. He also enjoys leading worship at his church.

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