Scenario - One loan secured by two houses. Both houses are in a flood zone. Let's assume the loan balance is the lesser of the three factors on both homes. Should the borrower have coverage equal to the loan balance on both properties? Or can the borrower split the coverage amount between the two to cover the loan balance? e.g., loan amount $100,000. is it okay to have $75,000 on house A and $25,000 on house B? Or are they required to have $100,000 on house A and $100,000 on house B?

Coverage must be covered on each residence in an amount that totals $100M (your 75/25 example).

the borrower can split as you described and SavOne confirmed...however, is that in the borrower's best interest? Even tho that's our minimum requirement, he should seek the advice of his insurance agent on actual needs.