I have a situation where we have a home and a detached garage. The home is not in a flood zone but the detached garage is. The loan officer believes that the garage was not included on the appraisal for value. Can we "skip" the flood insurance on the garage since it is not included in the collateral?

Just because it wasn't included on the appraisal doesn't mean it is not included in the collateral. That only means it wasn't included in the valuation of your collateral.

More than likely the garage is attached to the real estate, so unless your deed specifically excludes the portion of land that the garage sits on, you have to require flood insurance on it.

agree with Dani.

Good point! Sooo as far as insurance amount, would we have to take the full loan amount in consideration or could we just use the 10% for appurtenant structures (since the house itself is not in the flood zone). I do understand that if the RCV is less than the 10% of the loan amount that we can use that figure (if indeed only 10% applied), but just making sure I have all my bases covered.

tHE 10% only works when it's going to be part of the house coverage...so you need a policy on the garage based on the normal "whichever is less" factors.

Also, remember if any part of the garage is used for anything else, like a shop..it stands alone regardless of the house (if the house was in the zone)

I agree. You need to make a good faith determination of the value of the garage and purchase insurance for this amount (I assume it is the lesser of the loan amount).