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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.
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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
rlcarey
Joined: Jul 2001
Posts: 79,637
Galveston, TX
Define the HOA and describe the situation in more detail. HOAs don't work like RCBAPs.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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