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#1892981 - 02/03/14 05:37 PM Is flood insurance required?
Anonymous
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Is flood insurance required if the house is not in the flood zone but a fence is?

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#1892985 - 02/03/14 05:46 PM Re: Is flood insurance required? Anonymous
Tater Offline
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Isn't the test a walled and roofed structure? Just thinking out loud, but don't think a fence qualifies as an improvement that could even BE insured under NFIP?
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#1892988 - 02/03/14 05:48 PM Re: Is flood insurance required? Anonymous
manimal Offline
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Here are two threads that discuss your exact question, one very recent and the other a few years old, but still applicable.

http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1885283

http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1191581
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#1892994 - 02/03/14 06:02 PM Re: Is flood insurance required? Anonymous
Anonymous
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Thanks to both of you !

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#1893005 - 02/03/14 06:43 PM Re: Is flood insurance required? Anonymous
Anonymous
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Where can i find requirements and definitions? From what i read it says improved real property, so what is considered improved real property?

If improved real property securing a loan is located in a SFHA and flood insurance is available, then the lender must require the borrower to obtain the proper amount of flood insurance before closing the loan.

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#1893008 - 02/03/14 06:46 PM Re: Is flood insurance required? Anonymous
manimal Offline
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From 339.2 Definitions:

(i) Residential improved real estate means real estate upon which a home or other residential building is located or to be located.
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#1893009 - 02/03/14 06:46 PM Re: Is flood insurance required? Anonymous
manimal Offline
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And to go with Tater's comment, also from 339.2:

(c) Building means a walled and roofed structure, other than a gas or liquid storage tank, that is principally above ground and affixed to a permanent site, and a walled and roofed structure while in the course of construction, alteration, or repair.
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#1893015 - 02/03/14 06:55 PM Re: Is flood insurance required? Anonymous
RR Joker Offline
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Originally Posted By: Anonymous
Is flood insurance required if the house is not in the flood zone but a fence is?


No, a fence is not a structure for flood insurance purposes.
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#1893017 - 02/03/14 06:59 PM Re: Is flood insurance required? Anonymous
Anonymous
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So there is a home on the property, but as long as the builing is not in the area that shows as a flood area its ok?

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#1893019 - 02/03/14 07:00 PM Re: Is flood insurance required? Anonymous
manimal Offline
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That's my interpretation.

ETA: But I'd make sure to verify and document that it is indeed just the fence that resides in the flood zone.
Last edited by manimal; 02/03/14 07:01 PM. Reason: eta
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#1893024 - 02/03/14 07:05 PM Re: Is flood insurance required? Anonymous
Rocky P Online
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Just as an additional comment - the fence is not walled and roofed, so no flood.
However, if the building, even an inch in one corner of the structure was in the SFHA, then insurance would be required on the entire house.
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#1893025 - 02/03/14 07:06 PM Re: Is flood insurance required? Anonymous
Anonymous
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Thanks !

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#1893026 - 02/03/14 07:08 PM Re: Is flood insurance required? Rocky P
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Originally Posted By: Southern Banker
Just as an additional comment - the fence is not walled and roofed, so no flood.
However, if the building, even an inch in one corner of the structure was in the SFHA, then insurance would be required on the entire house.


Agree.
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#1893039 - 02/03/14 07:25 PM Re: Is flood insurance required? Anonymous
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Also - if an attached deck is within an SFHA but not the house - insurance is required.
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#1893044 - 02/03/14 07:35 PM Re: Is flood insurance required? Anonymous
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It's funny to me how that's considered a requirement for insurance, yet the insurance doesn't cover decks.
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#1893046 - 02/03/14 07:38 PM Re: Is flood insurance required? Anonymous
Mike Baker Offline
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This piggybacks off a question I saw in the Flood Compliance Forum...curiosity question(s)...if the structure is a shed, or storage building...NOT attached to a residential building...does that matter with regard to the requirement for flood insurance...and would it matter whether or not any value is ascribed to the shed/storage building structure for purposes of LTV? That is, say the appraiser gave $10,000 value, but the financial institution excluded that value in deriving its LTV, would that be relevant at all? Or what if the appraiser noted the existence of a structure but assigned no value to it in determining the appraised value? Since I do not usually deal with this, perhaps I am not as up to speed on this as I should be. Thank you for your input.
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#1893124 - 02/03/14 09:30 PM Re: Is flood insurance required? Anonymous
ItNeverEnds CRCM Offline
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If the shed/storage building is in a flood zone, you have to assign it value and get flood insurance coverage.
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#1893254 - 02/04/14 02:33 PM Re: Is flood insurance required? Anonymous
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Agree. You would use ACV and cover accordingly.
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