Skip to content
 

Examiner Verification of RCV on Comm Property

Answered by: 
Randy Carey

Question: 
Now that the NFIP changed the flood insurance coverage to take into account the replacement cost value (RCV) where the appraised value was previously used, how will this affect commercial buildings? This change appears to make more sense for single family dwellings due to the equation (lesser of the debt, value or max coverage available). How will the examiners verify the RCV on a commercial property?
Answer: 

There is no answer for this question except to recommend that you call your regulator and ask how it plans to examine to the RCV standard. Then also pick up your pen and write a comment letter on the latest proposed flood Q&A by the regulators requesting that they clarify this issue.

First published on BankersOnline.com 6/16/08

First published on 06/16/2008

Filed under: 
Lending
Filed under lending as: 
Flood
Regulators

Report a problem with this page

Search Topics