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#2020740 - 06/16/15 05:54 PM HOA flood insurance
mslisaz Offline
New Poster
Joined: Jun 2015
Posts: 1
Hello! HOA does not purchase the adequate amount of flood insurance coverage to protect the building. What can a lender do?

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Flood Compliance
#2020820 - 06/16/15 08:21 PM Re: HOA flood insurance mslisaz
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
1. Refuse to make the loan.
2. Require the owner to purchase a owner's policy for the difference in coverage. Just be sure the HOA coverage is a minimum of 80% to avoid any potential co-insurance penalties in case of a loss. The owner's policy will not cover this co-insurance penalty.
The opinions expressed are mine and they are not to be taken as legal advice.

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#2021404 - 06/18/15 10:34 PM Re: HOA flood insurance mslisaz
rlcarey Online
10K Club
Joined: Jul 2001
Posts: 79,637
Galveston, TX
Define the HOA and describe the situation in more detail. HOAs don't work like RCBAPs.
The opinions expressed here should not be construed to be those of my employer:

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