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#2018944 - 06/08/15 02:10 PM Flood insurance--detached structure
JWills, CRCM Offline
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JWills, CRCM
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The Mitten State
I am trying to find some clarification--

The 2014 Flood Reform Act added a new exemption for any non-residential structure that is detached from the primary residential structure. Specifically, the 2014 Flood Reform Act provides that “flood insurance shall not be required, in the case of any residential property, for any structure that is part of such property but is detached from the primary residential structure of such property and does not serve as a residence.” This is generally thought to refer to detached garages and other detached structures.

What do you do in the case where the primary structure (residence) is not in a flood zone, but the SFHD states the detached garage is? Are we required to obtain flood insurance on the detached garage?
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Flood Compliance
#2018949 - 06/08/15 02:19 PM Re: Flood insurance--detached structure JWills, CRCM
Dan Persfull Offline
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Bloomington, IN
What do you do in the case where the primary structure (residence) is not in a flood zone, but the SFHD states the detached garage is?

If it is residential property the detached structures are exempt.
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#2018950 - 06/08/15 02:21 PM Re: Flood insurance--detached structure JWills, CRCM
JWills, CRCM Offline
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JWills, CRCM
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The Mitten State
That is how we were interpreting it Dan, but we were being told otherwise. And everything we could find online at Floodsmart.gov was exempting them as well. That makes my life much easier today. Thank you for your help.
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#2018958 - 06/08/15 02:34 PM Re: Flood insurance--detached structure JWills, CRCM
Dan Persfull Offline
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Dan Persfull
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Bloomington, IN
The purpose of exempting the detached structures was primarily to cover this specific scenario. I guess there were enough complaints that it was somewhat counter productive to force the borrower to purchase flood insurance on a detached structure when the structure for the most part lent no significant value to the LTV that they came up with this exemption.

Once FEMA starts having to pay out on these "non-insured" structures I'm curious how quick the law will be repealed, or at least modified.
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#2019473 - 06/10/15 01:53 PM Re: Flood insurance--detached structure JWills, CRCM
SMali Offline
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We have a multi-family residential structure with a detached shed used for maintenance materials. Is this still considered under the exemption? Last year we had interpeted the rules to exempt structures detached from only 1-4 family and have maintained our requirement for flood insurance. Does anyone know if this was clarified? This policy is coming up for renewal soon.

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#2019479 - 06/10/15 02:04 PM Re: Flood insurance--detached structure JWills, CRCM
JWills, CRCM Offline
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JWills, CRCM
Joined: May 2013
Posts: 1,756
The Mitten State
It states as long as the detached structure is not used for any type of residence that it would be exempt. I would think the multi-family wouldn't make any difference. I could be wrong, we've never had this situation.
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#2025902 - 07/08/15 03:34 PM Re: Flood insurance--detached structure JWills, CRCM
QCL Offline
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QCL
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NW IL
So is notification required?
Residence NOT in SFHA.
Garden shed IS in SFHA.

Do we give notice?

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#2025908 - 07/08/15 03:44 PM Re: Flood insurance--detached structure SMali
rlcarey Offline
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Galveston, TX
Originally Posted By SMali
We have a multi-family residential structure with a detached shed used for maintenance materials. Is this still considered under the exemption? Last year we had interpeted the rules to exempt structures detached from only 1-4 family and have maintained our requirement for flood insurance. Does anyone know if this was clarified? This policy is coming up for renewal soon.


One the requirements for exemption is as follows:

(1) “a structure that is a part of a residential property” is a structure used primarily for personal, family, or household purposes, and not used primarily for agricultural, commercial, industrial, or other business purposes;

I would be hard pressed to say that a maintenance shed located in an apartment complex is for personal, family, or household purposes.
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#2025910 - 07/08/15 03:49 PM Re: Flood insurance--detached structure QCL
rlcarey Offline
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rlcarey
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Galveston, TX
Originally Posted By QCL
So is notification required?
Residence NOT in SFHA.
Garden shed IS in SFHA.

Do we give notice?


There is no requirement to purchase insurance, so the notice is going to be a little bit moot and possibly misleading.

That doesn't mean you can't just tell them.
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