FDIC FAQs – 2012 NY Flood Insurance Teleconference - 27

Compliance > Lending > Flood > Flood Ins Compliance Teleconf - Dec 2012
Q:  If there is a guest cottage or a pool house on a property included in the appraised value, how do we determine the amount of coverage to request for the separate policies required on these structures?
 
A:     There is no exact method, total required flood insurance coverage can be allocated among the secured buildings in varying amounts. A best practice may be to make a reasonable determination of how the value is distributed among the multiple structures, whether the appraisal gives this guidance or the insurance agent can advise- then distribute coverage accordingly.
 
 
ADDITIONAL INFORMATION – This Q&A was included in the materials from the FDIC New York Region Regulatory Teleconference:  “Flood Insurance – Flood Insurance Compliance and an Examiner’s Perspective” which took place on December 3, 2012.      These materials may be found here:  https://www.fdic.gov/news/conferences/NY/2012-12-03.html
 

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