[ken5050]

Thanks..I thi nk I understand..but flood insurance covers damage to the structure cuased by flooding, NOT to the land, right? And how can a lender "force" you to get coverage for the full value, if the insurance companies won't write the coverage?.. Let's take an extreme example..to try and understand the point.. YOu own an undeveloped 10 acre parcel..it's buildable..it's a high cliff overlooking the ocean..the perfect homesite..the plot is worth, let's say.$10 million..on it, for whatever reason, you're a wealthy quirky person..you only put a $50,000 mobile home..If you've put down a $100k payment, and gotten a $900 k mortage.., in this case the entire cliff could disappear.

[newfrpr04]

Correct - flood only covers the structure NOT the land. Does not cover landslide,destabilization or movement of land Ins co will only insure the replacement cost not market value. If lenders insure they rip you off and require you insure the amount of the loan. When you can't get insurance due to claims, or area- lenders place their own insurance (sometimes same carriers that won't write through standard markets !)and "force insurance" based on the amount of the loan.
You CAN get Landslide Insurance- only one company writing in California Very expensive $ 400-600 per$100,000 of coverage. You would think if you spend so much money on the property you would spend the money on insurance. Still won't cover the land just the structure with all sorts of conditions. Insurance seems to have more exclusions versus coverage.