[Mary Beth Devillier]

I have a loan request for the purchase of a rv park and campground with several buildings included located in a flood zone. This property includes a 1-4 dwelling, office building, entry building, 4 cabins, food shop, equipment storage shed, pavillion storage and 3 – 4 bathhouses. I know I need to figure the amount of flood coverage for each building, but will I have to receive this many policies? or this can be written on one policy? The appraiser did give an insurable replacement value on all the different structures. Still reviewing the appraisal to make sure I have counted for all structures, but just making sure I can get this loan covered correctly with flood insurance. Best way to get started?

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[Kimberly Boatwright, CAMS, CRCM]

Wow – Large/complex scenario — best approach is to break it down–

1. Under the National Flood Insurance Program (NFIP):
• Each building requires its own separate flood insurance policy
• NFIP policies are written per structure, not per property
• In this case (house, office, cabins, bathhouses, etc.), you are likely looking at multiple policies, not a single blanket policy.
• A single policy may be possible through private flood insurance, depending on the carrier.
2. Coverage limits with NFIP:
• Commercial building max: $500,000 per building
• Contents: $500,000 per building
• If your appraisal shows higher replacement values (which is common with multiple structures), NFIP may not satisfy the requirements.
3. Documentation / file setup – Build a clear structure list from the appraisal:
• Building name (Cabin #1, Bathhouse A, etc.)
• Use (residential, commercial, storage)
• Replacement cost (focus on replacement cost, not cash value, for lending)
• Square footage
• Elevation (if available)
4. RV/Campground:
• Primary buildings (office, dwellings, cabins):
o Typically must be individually insured (NFIP or private)
• Lower-value structures (sheds, pavilions):May be:
o Not required by the bank OR Covered under a private/blanket policy (if allowed)
o Under NFIP, these would still require separate policies
5. Considerations
• Do not assume: “One property = one policy” (not how flood works under NFIP)
• The bank is not limited to NFIP:
o Private flood insurance is often a better fit for this type of risk:
* Can cover multiple buildings under one policy
* Can provide higher limit policy which offer better coverage
* More flexibility for mixed-use properties

• Important:
o Ensure all required structures are specifically covered or scheduled
o Apply consistent standards across borrowers to avoid compliance issues

THIS POST DOES NOT CONSTITUTE LEGAL ADVICE

• This reply was modified 3 weeks, 3 days ago by Kimberly Boatwright, CAMS, CRCM.
• This reply was modified 3 weeks, 3 days ago by Brent V.

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