NFIP Interpretation Question
October 6th, 2006The maximum available insurance is $250,000 per residential building –when I have a 4, 5 or even 8-unit apartment building, I interpret that to mean that the maximum NFIP insurance available for that “building” is $250,000. Please let me know if this is not a correct interpretation.
What happens when those units are not apartments, but individually-owned Townhouses that share one or both “outside” walls? In the scenario that I have before me today, I have a construction loan for five Townhouses, all in a row, but sharing one or two walls (depending on whether they are on the end or in the middle). Together, what they form could be called a building, but because they will be individually owned when sold by the builder, wouldn’t I consider them as five units or buildings and consider the maximum available insurance during construction at $1,250,000? These are not condos.
