We are having issues with customers and even insurance agents when dealing with car washes that are in a flood zone. My interpretation is that since the car wash was two load bearing walls and a roof, it is an insurable structure and requires flood insurance. I would like assurance as to whether this is what other banks are determining as well, because one insurance agent acted like I was crazy for requesting flood insurance on a car wash.

Recently ran into the same scenario. Because the car wash met the definition of an insurable structure under the NFIP (at least two rigid exterior walls and a roof), insurance was required. Eventually our customer obtained insurance in order to close.

When an insurance agent acts like you are crazy, just ask him to pull out the flood insurance manual and point to the citation that indicates the car wash is not eligible for insurance.