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#2228910 - 01/13/20 09:21 PM Flood coverage-Contents but not the building?
mdog76 Offline
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Joined: Jan 2007
Posts: 645
Just wanting to make sure that you have to have the building as collateral before you can cover contents for flood insurance? We have a leased building in a flood zone.

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Flood Compliance
#2228917 - 01/13/20 09:53 PM Re: Flood coverage-Contents but not the building? mdog76
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,617
Galveston, TX
No - a leasee can buy contents insurance for contents they are storing in a leased building. A lender is free to make flood insurance a requirement, even if it is not required under the regulations.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2228941 - 01/14/20 01:56 PM Re: Flood coverage-Contents but not the building? mdog76
mdog76 Offline
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Joined: Jan 2007
Posts: 645
So we can require it if we feel the need but its not required by flood regulations?

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#2228944 - 01/14/20 02:14 PM Re: Flood coverage-Contents but not the building? mdog76
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,617
Galveston, TX
That would be correct. You can always require flood insurance as a safety and soundness measure. But contents insurance is only required under the regulation when you have both the building and contents securing the same loan.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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