Saving a 150-Unit Apartment Deal with Smarter Flood Insurance
Location: Madison County, AL
Property Type: 150-unit apartment complex
Client: Real estate investor and apartment owner
Challenge: Lender requirements that exceeded available flood insurance coverage
Summary: A lender required unrealistic flood insurance coverage that nearly killed the deal. We stepped in, restructured the policy, worked with the bank, and helped the owner close — saving 25% per door and protecting NOI.
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The Problem
The client was under contract to purchase a large multifamily complex in Madison County. But the deal was about to collapse — the lender required flood insurance coverage that simply didn’t exist:
- $12 million in building coverage (when only $6 million was available)
- 24 months of loss of use coverage (when the market only offered 12 months)
The apartment owner was stuck — they couldn’t meet the lender’s requirements, and the closing was days away from falling apart.
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The Solution
The Flood Insurance Guru stepped in to reframe the risk — and negotiate with the lender based on facts, not fear. Here's what we did:
- Performed full market analysis of available flood insurance options
- Documented maximum coverage available across top-tier private carriers
- Presented a compliant, realistic policy structure including:
- $6M building coverage
- 12 months of loss of use (maximum in-market)
- Full replacement cost valuation
- Engaged the lender directly and helped them remove unmeetable coverage requirements
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