Answer:
The Flood rules state that amount of coverage must be at least equal to the lesser of:
• The outstanding principal balance of the designated loan;
• The maximum limit of coverage available for the particular type of property under the Act;
• The value of the improvements (building or mobile home) and any personal property that secures a loan and not the land itself. [Insurable Value or Replacement Cost Value]
Based on your scenario you could just place for the principal balance of the loans.
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