FDIC FAQs – How does the bank calculate the appropriate amount of insurance?

Compliance > Lending > Flood > FAQs
Q:  How does the bank calculate the appropriate amount of insurance?
 
A:    Compare three values: (1) The maximum amount of insurance available under the NFIP, (2) the insurable value of the property, and (3) the principal loan amount(s) outstanding. The lesser of the three is the minimum required amount of coverage.
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ADDITIONAL INFORMATION:
This Q&A was included in the FDIC’s Flood Insurance Videos, which were updated in 2016, which may be found here:   https://www.fdic.gov/news/news/financial/2016/fil16018.html
 

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