So I have a client with a 1985 mobile home that costs roughly $80k to rebuild at replacement cost. ACV is $20k. They have a flood policy and the lender keeps requesting higher coverages. So I spoke with them today and they are requiring the homeowner to increase their coverage to the loan amount of either 170k or the max of 250k. I can't over-insure this mobile home for that much because I don't have an RCE to back it up. Legally speaking, can the lender force them to carry more coverage than the replacement cost?
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