It can be especially if the building has a flood! It also depends on who told you this as different people may have different opinions as to how much flood insurance is sufficient. You would be better off speaking to your own lawyer or insurance broker to get a good answer to this question.
If I can be of further assistance, please let me know. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783