FLOOD INSURANCE COVERAGE FORM

Complete this form to determine the amount of flood insurance needed for a loan that is secured by improved real estate located in a special flood hazard area or for a loan secured by a mobile home located in a special flood hazard area (whether or not loan is secured by the real estate).

The amount of flood insurance must equal the lesser of the loan amount (plus balances of all loans in a superior position), the insurable value of the improvements, or the maximum coverage available through the National Flood Insurance Program (NFIP).

IMPORTANT ITEMS TO NOTE:

There should be a separate flood insurance policy for each insurable structure.

Evidence of flood insurance must be provided on or before loan closing even on construction loans.

Contents coverage should not be included on this form.

Our Loan Amount ______________ +	Prior Lien(s) Balance(s): _________________ =	Total All Loans: ____________________
Total Appraised Value: _____________ -	Land Value (n/a condo) = ____________________	Total Value of Improvements: ________________ OR
		Total Replacement Cost Per Hazard Insurance Policy:_____________
Maximum NFIP Available Per Residence- $250,000 X Per Comm. Bldg $500,000 X	No. Units or Buildings _______________ =	Maximum NFIP Insurance Available _________________
	The Lesser of the values In the right column =	Amount of Insurance Required *** $__________________

CALCULATION OF COVERAGE ON INDIVIDUAL CONDOMINIUM UNITS

Total insurance carried by the Association: $_____________ (Note if by building or entire condo association) __________________________

Divided by No. Units _____________ equals (In either the building or total condo, based on coverage type)

Amount of Insurance Per Unit ________________ This figure is an average, based on master policy. Owners can purchase additional insurance on individual units if required.

***Amount of Insurance required: $_________________ (Insert same amount determined above)

Amount currently in place or applied for: $_________________ From policy or evidence of insurance application for coverage or condo calculation above.

Is the amount of insurance adequate? _____YES _____ NO

Borrower: ____________________________________________Loan #: ____________

Address of Property: ______________________________________________________

_______________________________________________________________________

Date Form Completed: _______________________________

Prepared by: ________________________________________

Flood-1 Form Revised 6/28/02 Southern Community Bancorp Compliance Department