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#2122537 - 03/17/17 08:00 PM Townhouse construction project in flood zone
DoubleNickel Offline
Junior Member
Joined: Jan 2013
Posts: 25
Loan request is to build 7 townhouses which are on 7 lots with 7 different addresses but they are all under one connecting roof. If only one of the end lots is in a SFHA, doesn't the flood insurance have to be on the entire structure since there is only one roof? That is what I am telling my lender. The lender then asks the question, if upon completion, each townhouse is sold individually and a flood determination is pulled on the specific address for a lot that is not in the SFHA, would it reflect to be in a SFHA?

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Flood Compliance
#2122563 - 03/17/17 10:08 PM Re: Townhouse construction project in flood zone DoubleNickel
rlcarey Offline
10K Club
Joined: Jul 2001
Posts: 78,956
Galveston, TX
These are most likely 7 single buildings. Refer to the Flood Insurance Manual, Page GR -5.

As such, only those in the flood zone need insurance. If not, you have a real problem. How are only individual owners going to be able to insure their individual properties as the 7 unit structure would only be eligible for $500,000 under a general property form unless they turned them into condominiums.
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