We have a loan secured by a manufactured home on a permanent foundation that is in a SFH area. There is also a detached garage on the property. In the General Rules under III. Building Property Eligibility A. Eligible Buildings 1. Appurtenant Structures, it indicates, "The only appurtenant structure covered by the SFIP is a detached garage at the described location, which is covered under the Dwelling Form. Coverage is limited to no more than 10 percent of the limit of liability on the dwelling. Use of this insurance is at the policyholder's option but reduces the building limit of liability."


The flood insurance policy does not identify the detached garage. Should it?

No, it is automatically covered.

As long as the value of the garage doesn't exceed 10% of the value/coverage of the dwelling.

Got it! Thanks for your input.

Randy, you may be right about the automatic coverage on the policy, but there may be a problem on the determination.

Read the instructions for Multiple Buildings:

If the loan collateral includes more than one building, a schedule for the additional buildings/mobile homes indicating the determination for each may be attached. Otherwise, a separate form must be completed for each building or mobile home. Any attachments should be noted in the comment section. A separate flood insurance policy is required for each building or mobile home.

The Determination is at:

http://www.fema.gov/pdf/nfip/sfhdf.pdf

OCC really beat us up on one deal (luckily we had insurance on both buildings).

Al

Al,

So, let me get this straight. In a situtation where there is a mobile home and a detached garage at the same address, we are supposed to order a determination for each building? (Or provide a schedule for the additional buildings).

Yes, if there is more than one structure, you either need a separate determination OR a schedule (prepared by the determination provider) of the structures. There should be room in the Comments section (box 6) for them to indicate that there is a "home" and a detached "garage". They should not charge you to amend and re-issue the determination.

In our case, each building has separate addresses, so they wanted those listed. We have an old deal with a house, a detached garage and a shop, all with the same address. Then they need to differentiate the structures by description.

Al

We have a similar situation. A mobilehome with a detached garage. I will have someone contact our determination vendor today to have them amend and re-issue the determination.

Thanks for sharing this Al!

Al,

I have never in my life seen a regulator impose that requirement on a detached garage - multiple structures that require insurance, yes. Not that you are not techinically correct. Of course we were talking about the policy itself in the orignal post and not the FHD.

Also, it doesn't matter what the value of the detached garage might be, it is covered under the flood insurance policy and that is all that is required if the amount of the insurance policy meets the other requirements.

In my case, the separate structure does not require insurance, so I think I will leave it alone.

Thanks guys!

Why is that? Is the detached garage outside the SFHA boundaries?

http://www.fema.gov/news/newsrelease.fema?id=18292

Does my NFIP policy cover all the buildings on my property?

The Standard Flood Insurance Policy provides coverage for one building per policy. The only exception is 10 percent coverage for a detached garage. However, the total payment for flood damage to the detached garage and the house together cannot exceed the building policy limit. For coverage to apply, the garage can only be used for parking and storage. Any other use would void this coverage; for example, if the garage has a workshop, the coverage would not apply. All other buildings on the premises need separate coverage. (Coverage is also available for owners of condominium units.) The maximum coverage available is $250,000 for residential properties and $500,000 for commercial properties.


From page 38 of the Mandatory Purchase Guidelines

(2) Instructions for Using the SFHDF
The reverse side of the SFHDF has detailed
section-by-section instructions for completing
the form. A separate SFHDF is required for
buildings on adjacent properties. However,
if a single property contains multiple
buildings, a listing of buildings on the parcel
can be attached to the SFHDF. Only one
building may be insured under one NFIP
policy. Each building securing a loan must
be covered by a separate policy.

Oops! I meant that it didn't require a separate POLICY. My bad. My situation meets the exception described in your post above.