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#2188841 - 08/13/18 02:03 PM Exempt from NFIP under Ok Law?
HRH Okie Banker Offline
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Joined: Jan 2003
Posts: 3,070
Oklahoma
We have a customer in contact with Oklahoma Water Resources Board that provided us with the following, thinking he found an "out" for having to purchase flood insurance. To be fair this customer pays about $15k annual for flood insurance. Anyone seen this before or run up against this in the past?

"All of YOUR BUILDINGS AND PONDS that are used for agricultural purposes are exempt from NFIP regulation per Oklahoma law. (Important to note that a lender however can always require you to carry flood insurance no matter what if there are loans.)

From Oklahoma Floodplain Management act Title 82:
5. A provision that the floodplain management regulations of a floodplain board shall not apply to the use of the usual farm
buildings for agricultural purposes, the planting of agricultural crops or the construction of farm ponds;

"Farm building" means a walled and roofed structure which is not intended for human habitation or commercial use but which may be used for agricultural purposes including but not limited to the storage of crops, farm machinery, or livestock.
"Farm pond" means a reservoir impounding less than 50 acre-feet of water with a dam less than 25 feet in height and a drainage area less than one square mile used for stock water and domestic use.

The RESIDENTIAL STRUCTURE would still need to be evaluated for permitting/LOMC by the Woodward County FPA."
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#2188845 - 08/13/18 02:25 PM Re: Exempt from NFIP under Ok Law? HRH Okie Banker
HRH Okie Banker Offline
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Joined: Jan 2003
Posts: 3,070
Oklahoma
After researching I'm of the opinion this is a State "department" that works closely with FEMA and NFIP and does not replace what is at the federal level. What is concerning here is the quote that flood insurance on ag buildings is exempt but the lender may require it - not that the federal law will require it be obtained. Any opinions?
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#2188850 - 08/13/18 02:53 PM Re: Exempt from NFIP under Ok Law? HRH Okie Banker
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
They are nuts. That says that ag buildings are exempt from "floodplain management regulations". What they adopt as part of their floodplain management regulations in their jurisdiction is up to them and between them and the NFIP. However, that has absolutely nothing to do with the NFIP insurance program nor does it override the regulations of the various banking agencies. A State or municipality cannot override a Federal law. Think marijuana for instance.

And after a second read - I think that is what they are saying. They are not saying they do not need flood insurance if they have a loan - they are saying that the flood plain management rules don't apply to the buildings.
Last edited by rlcarey; 08/13/18 02:55 PM. Reason: added a comment
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#2188860 - 08/13/18 03:10 PM Re: Exempt from NFIP under Ok Law? HRH Okie Banker
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Thanks. That is just want my research is telling me. I really didn't think we'd suddenly find some obscure law that allowed ag borrowers to be exempt from flood insurance requirements. Just a customer grasping at straws, for which I don't blame him!
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