Flood Insurance-more than 1 policy?

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    I may have asked this question before, but I can’t seem to find it on the forum if so, I could be thinking of something similar, but apologize in advance if I have.

    Can a borrower obtain more than 1 flood insurance policy on their home? For the particular loan we are working on, the home is valued at $515,000 excluding land, and the total debt on the home will be around $756,000. (The land has a high value.) The borrower has applied for a $250,000 NFIP flood insurance policy that will only cover the 1st mortgage partially in the event a flood occurr. We are asking for additional coverage for our loan with our bank as mortgagee since we will hold the 2nd lien. The insurance company is telling the borrower that only 1 flood insurance policy can be written on a home. While I believe that’s true for NFIP, I was thinking that a private policy can also be written on the same home for the same borrower to provide additional coverage. Can the borrower get the additional policy?


    The borrower would not be able to purchase another NFIP, but they could purchase a private policy to cover the difference betweent he NFIP policy coverage and the value of the structure. Since the first policy satisfies the flood reg coverage amount, an additional private policy would be a decision based on risk to the bank and borrower, rather than the regualtory requirement.

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