I have been searching through +Flood +Construction threads and came upon this one.
We are financing the construction of a large home in a flood zone (not sure why they shose that spot, but...) and the insurance company tells us we have to wait until the structure is complete before obtaining the insurance.
I've never had a construction loan in flood zone before. Is this correct? I would think the builders risk would cover it until completion, but what if it floods after it is under roof and prior to completion?
Also, the homeowner states he only has to provide $250,000 coverage because that's all the legal system states he has to purchase. The cost of construction for this house is $750,000.00. We want to require RCV up to $750,000.00 plus contents. Is this possible?
Also again, would it matter if the property is in a participating community or not?
Any and all assistance will be appreciated.