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#2251752 - 04/02/21 04:25 PM Blanket Lien vs. UCC Filing
SallyGirl Offline
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Joined: Aug 2014
Posts: 69
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?

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Flood Compliance
#2251757 - 04/02/21 04:52 PM Re: Blanket Lien vs. UCC Filing SallyGirl
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,965
Galveston, TX
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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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2251762 - 04/02/21 05:24 PM Re: Blanket Lien vs. UCC Filing rlcarey
SallyGirl Offline
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Joined: Aug 2014
Posts: 69
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?

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#2251767 - 04/02/21 05:42 PM Re: Blanket Lien vs. UCC Filing SallyGirl
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,965
Galveston, TX
Flood FAQ.

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.

https://www.bankersonline.com/sites/default/files/tools/flood_faq_2011_10_17.pdf

Whether your lien is perfected (i.e., a UCC-1) is irrelevant.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2251773 - 04/02/21 07:48 PM Re: Blanket Lien vs. UCC Filing rlcarey
SallyGirl Offline
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Joined: Aug 2014
Posts: 69
Thank you!

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