Is the contents stored in the building included in the guarantee? If so, I'd say its covered.
43. If a lender makes a loan that is not secured by real estate, but is made on the condition of a personal
guarantee by a third party who gives the lender a security interest in improved real estate owned by the
third party that is located in an SFHA in which flood insurance is available, is it a designated loan that
requires flood insurance?
Answer: Yes. The making of a loan on condition of a personal guarantee by a third party and further
secured by improved real estate, which is located in an SFHA, owned by that third party is so closely tied
to the making of the loan that it is considered a designated loan that requires flood insurance.
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Adam Witmer, CRCM
All statements are my opinion, not those of my employer, and should not be taken as legal advice.
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