How much flood insurance do you need? This is a question we get a lot. If you make, increase, renew, extend, etc., a loan secured by improved real estate located in a Special Flood Hazard Area, you must require the borrower to purchase flood insurance. It goes on to state the amount of insurance must be equal to the lesser of three things. These are: 1) the outstanding principal balance of the loan(s); 2) the insurable value; and, 3) the maximum amount of insurance available from the National Flood Insurance Program. This isn’t always easy to do.
David explains more in the video.
Published
2021/04/26