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#2187124 - 07/27/18 05:07 PM Builders Line and Flood insurance
MCCompliance Offline
Member
Joined: Nov 2012
Posts: 95
We will have a builders line of credit that will be used to build homes on land that is owned by other individuals, not the builder. I am told we will be taking the land as collateral for our loan. One of the first properties a home will be built on is located in a designated flood zone.

Flood insurance will be required, correct? And the policy would need to come from the property owners, not the builder, correct?

Sorry for the seemingly simple question, just need confirmation/other opinions on this. Thanks in advance.
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Flood Compliance
#2187150 - 07/27/18 06:32 PM Re: Builders Line and Flood insurance MCCompliance
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,359
Galveston, TX
Well, if you are taking a security interest in the home being constructed, then flood insurance will be required. Only the owner of the property can be the named insured - who buys/pays for the insurance is between the owner and the builder.
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#2187160 - 07/27/18 06:50 PM Re: Builders Line and Flood insurance MCCompliance
MCCompliance Offline
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Joined: Nov 2012
Posts: 95
Thank you!
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