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#2174576 - 04/23/18 09:47 AM Large land loan with camp
ilovebulldogs! Offline
Platinum Poster

Registered: 09/18/07
Posts: 544
Loc: Mississippi, USA
We have a request for a loan to be secured by a large amount of land and, sitting on this land, is a cabin. The land is much more valuable than the cabin but it qualifies as a building. If we do not have a value for the cabin, is flood insurance required?
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Lela Purvis, CRCM/CCBCO/CBAP


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Flood Compliance
#2174579 - 04/23/18 09:57 AM Re: Large land loan with camp [Re: ilovebulldogs!]
Skittles Offline
10K Club

Registered: 09/10/02
Posts: 13157
Loc: TN
Not having a value for a structure does not relieve the bank from the flood insurance requirements. Is the structure in a special flood hazard area?
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My Opinions Only

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#2174581 - 04/23/18 10:04 AM Re: Large land loan with camp [Re: ilovebulldogs!]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 44894
Loc: Bloomington, IN
If we do not have a value for the cabin, is flood insurance required?

If the building is located in a SFHA it is the financial institutions responsibility to determine the insurable value of the building and require sufficient flood insurance coverage.
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The opinions expressed are mine and they are not to be taken as legal advice.

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