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#2004932 - 03/30/15 02:56 PM Mixed Use Property
lds1958 Offline
Platinum Poster
Joined: Oct 2006
Posts: 508
We have a loan that is secured by a commercial building that has a 2 bedroom apartment located in the commercial building. Am I correct in that if the building is 75% or greater for commercial use then the amount of flood insurance should be calculated based on the nonresidential amount and only 1 policy would be required?

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Flood Compliance
#2004934 - 03/30/15 03:00 PM Re: Mixed Use Property lds1958
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,912
Galveston, TX
Single-Family Dwelling

This is a residential single-family building,
a single-family dwelling unit in a condominiu
building; incidental occupancies are permitted
limited to less than 50% of the building’s to
floor area.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2069493 - 03/16/16 01:39 PM Re: Mixed Use Property lds1958
terpsfan Offline
Diamond Poster
Joined: Feb 2007
Posts: 1,989
We are trying to determine whether a mixed use building would require escrow. The loan is consumer purpose and only 25% of the finished space is residential. There is a drive under garage which would if included make it more than 50% residential. Would I be correct to include this space since it is used by the person living in the apartment for personal storage?

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#2069611 - 03/16/16 05:18 PM Re: Mixed Use Property lds1958
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,762
Central City, NE
I understand the confusion, but there are multiple factors that could change an answer to your question. I would start with how you classify the building (is it residential or not?) and how the insurance agent classifies it. Is there a dwelling policy or a non-dwelling policy on it?
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David Dickinson
http://www.bankerscompliance.com

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