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#2174576 - 04/23/18 01:47 PM Large land loan with camp
Libby M. Offline
Platinum Poster
Joined: Sep 2007
Posts: 604
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 01:57 PM Re: Large land loan with camp Libby M.
Skittles Offline
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Skittles
Joined: Sep 2002
Posts: 13,965
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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#2174581 - 04/23/18 02:04 PM Re: Large land loan with camp Libby M.
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,517
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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#2208264 - 03/08/19 06:01 PM Re: Large land loan with camp Skittles
trinna Offline
Gold Star
trinna
Joined: Oct 2003
Posts: 288
Midwest
We just ran into this same situation today - land with a cabin. The information in this thread was very helpful. Thank you. But the insurance agent is telling the customer he can't get insurance; there is no address. So now what?

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#2208279 - 03/08/19 07:02 PM Re: Large land loan with camp Libby M.
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,225
Galveston, TX
Exclude improvements in your deed of trust, if this is the only improvement.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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