Posted By: deh
Flood Insurance on Multiple Buildings - 06/05/07 07:38 PM
We have a rural residential property that has a home and detatched 2-stall garage that is in a flood zone. Our examiners commented on this property because we only have one flood insurance policy. The coverage on the flood insurance policy is adequate for the loan amount and also based off of the appraisal amount for the property, less the value of the land.
Why does FEMA require separate flood policies on each structure?
As I looked into this further the instructions for the Flood Determination state that we either need a determination for each building or an attachment to the determination with a list identifying each additional structure and notes in the comment section on the determination documenting those.
What happens if you only have one determination with multiple buildings? Is the property inelligible for insurance? Is the Lender the only one responsible for ordering the determination properly? Or is the Flood Determination Agency responsible for completeing the determinations in compliance with the regulation?
Help me understand what seems to be silly red-tape, in my opinion.
Why does FEMA require separate flood policies on each structure?
As I looked into this further the instructions for the Flood Determination state that we either need a determination for each building or an attachment to the determination with a list identifying each additional structure and notes in the comment section on the determination documenting those.
What happens if you only have one determination with multiple buildings? Is the property inelligible for insurance? Is the Lender the only one responsible for ordering the determination properly? Or is the Flood Determination Agency responsible for completeing the determinations in compliance with the regulation?
Help me understand what seems to be silly red-tape, in my opinion.