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What is the calculation used to determine how much flood gap coverage I need?

April 26, 2017calculation coverage determine flood gap Used

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What is the calculation used to determine how much flood gap coverage I need?

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There are two ways to calculate sufficient coverage: • If the hazard insurance coverage* is less than the principal balance of the loan, the hazard coverage (-) minus the flood coverage = flood gap. • If the hazard insurance coverage* is greater than the principal balance of the loan, the hazard coverage X 80% (-) minus the flood coverage = flood gap. *Because PNC Mortgage does not have access to the actual replacement cost of the dwelling / structure, we have elected to use the hazard insurance coverage as the baseline.