I think you’re generally correct in using RCV – most of your consumer loans are probably owner-occupied, primary dwellings. The point #9, referenced in your question, is making is that the NFIP won’t pay RCV on non-owner occupied policies, so a borrower shouldn’t pay for coverage they won’t receive in the event of a loss to their property.
Look at page POL-20: https://www.fema.gov/media-library-data/b761010a7205eb9ac425d6142d2d275d/15_policy_508_oct2013.pdf
Look at page 4: https://www.fema.gov/media-library-data/20130726-1742-25045-5644/interagency_q_as.pdf(and see footnotes 4-6)