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#1701173 - 05/18/12 04:54 PM 2 detached garages & flood insurance
donnac Offline
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I understand that a detached garage receives 10% flood insurance coverage if the garage is used only for parking & storage.

We have a borrower with 2 detached garages that are used for parking & storage. How does insurance coverage work for 2 detached garages?

Thanks.

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#1701289 - 05/18/12 07:05 PM Re: 2 detached garages & flood insurance donnac
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
The reference states the 10% allowance applies to "a" detached garage and that all other buildings on the property require a separate policy.

It would be my opinion the 10% only covers one detached garage however that is strictly my opinion based on the use of the word "a".
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#1701485 - 05/19/12 06:38 PM Re: 2 detached garages & flood insurance Dan Persfull
donnac Offline
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Thanks.

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#1702008 - 05/22/12 03:30 PM Re: 2 detached garages & flood insurance donnac
upstateNY Offline
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New York State
Originally Posted By: donnac
I understand that a detached garage receives 10% flood insurance coverage if the garage is used only for parking & storage.

We have a borrower with 2 detached garages that are used for parking & storage. How does insurance coverage work for 2 detached garages?

Thanks.


Can you site me a page in the Mandatory Flood booklet on this? I'm not familiar with it

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#1702052 - 05/22/12 04:52 PM Re: 2 detached garages & flood insurance donnac
Dan Persfull Offline
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Dan Persfull
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Posts: 46,710
Bloomington, IN
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#1702065 - 05/22/12 05:17 PM Re: 2 detached garages & flood insurance Dan Persfull
upstateNY Offline
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New York State
Originally Posted By: Dan Persfull


Thank you. Since I didn't know this, please help me with my brain freeze. So one standard policy would cover a main house with attached garage and provide 10% (of the value???) to a detached garage that's only used for parking vehicles?
So how would an examiner feel about only 10% coverage on the detached garage??? Doesn't quite make sense to me.

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#1702084 - 05/22/12 06:11 PM Re: 2 detached garages & flood insurance donnac
MyBrainHurts Offline
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Illinois
It's not 10% of the value. It's 10% of the policy amount. If you have a $200,000 policy on the house, $20,000 of that can be allocated to the garage. You'll probably have an issue with the examiners, though, if it's a really nice garage with a RCV of say, $40,000.

The second building needs a separate policy.
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#1702090 - 05/22/12 06:23 PM Re: 2 detached garages & flood insurance MyBrainHurts
upstateNY Offline
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New York State
Originally Posted By: MyBrainHurts
It's not 10% of the value. It's 10% of the policy amount. If you have a $200,000 policy on the house, $20,000 of that can be allocated to the garage. You'll probably have an issue with the examiners, though, if it's a really nice garage with a RCV of say, $40,000.

The second building needs a separate policy.


That's my concern, thanks. And MyBrainHurts too.

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