For a commercial real estate loan, does a blanket lien invoke contents coverage or is it when a UCC is filed including fixtures? Or, is contents coverage only required when the loan collateral includes personal property in addition to the building?
Content coverage is only required when your loan is secured by both the building and contents. Whether not a specific security interest reaches insurable contents under an NFIP policy is a question for your legal counsel.
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So under the FDPA, contents coverage is required only when the security agreement includes personal property as collateral regardless of whether there is a UCC-1 Filing?
39. Is flood insurance required if a building and its contents both secure a loan, and the building is located in an SFHA in which flood insurance is available?
Answer: Yes. Flood insurance is required for the building located in the SFHA and any contents stored in that building.