Loan, secured by property (in a flood zone) and a vehicle (show care located in the property). I called FEMA and they said that a car does not need contents coverage. Is this true? The FEMA Guide refers to personal property. I thought a car was personal property.

For flood, personal property would be the stuff inside the building (inventory, furniture, equipment, etc) that is in the special flood hazard zone. You would have to have the building + contents as collateral on your loan for the personal property requirement to apply.

I agree. I thought that an automobile, particularly one that is a show vehicle and rarely used for transport would be considred "personal property". But FEMA tells me it is not.

I am going to rebump this because I have had no luck contacting FEMA. Here is the way the guide reads:

9) Personal Property Flood insurance coverage for contents is not required by law unless personal property, in addition to a building, secures the loan. Because residential mortgages rarely include personal possessions as part of the loan security, lenders are not required to compel borrowers to purchase contents coverage, as this is not a designated loan. When a commercial loan on a building includes inventory and other trade or business movable property as security for a loan, that
property must be covered by a separate policy under the General Property form.

But no where in the guide does personal property become defined. I typically consider personal property to be:

Personal property, roughly speaking, is private property that is moveable[1], as opposed to real property or real estate. In the common law systems personal property may also be called chattels or personalty. In the civil law systems personal property is often called movable property or movables - any property that can be moved from one location to another. This term is in distinction with immovable property or immovables, such as land and buildings. Movable property on land, that which was not automatically sold with the land, included many kinds of livestock; in fact the word cattle is the Old Norman variant of Old French chatel, which was once synonymous with general movable personal property.[2]

Thus, a loan secured by a car and a home, kept at the same location in the flood zone, would need a policy on the home and contents.

www.fema.gov/good_guidance/download/10183

VII. EXAMPLES OF INELIGIBLE RISKS
Some specific examples of ineligible risks are
provided below. See the policy for a definitive
listing of property not covered.

B. Contents Coverage
1. Automobiles--Including Dealer's Stock
(assembled or not)

Dan, you never cease to amaze me. Thank you.