Flood Insurance Contents Coverage for Multi-Use Property
The Bank is making a $2,000,000 loan secured by a building that has two residential units and a retail space. The residential units occupy over 75% of the square footage, with less than 25% of the space allocated for retail use. The building is located in a flood zone and has $250,000 in building flood coverage in place. As a security interest is also being taken in the contents of the building, would the amount required under regulation be $100,000 or $500,000?