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#2254792 - 06/03/21 03:14 PM Building Not Insurable Per Ins Co. - Force Place?
Libby M. Offline
Platinum Poster
Joined: Sep 2007
Posts: 604
Mississippi, USA
We have a loan secured by two properties on the same street. One building, according to the insurance company, is not insurable. The other one is ok. Since the insurance company will not insure one of the buildings, should we force place flood insurance on building that is not insurable or is the insurance company's inability to insure the building proof enough that insurance cannot be obtained.
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Lela Purvis, CRCM/CCBCO/CBAP


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Flood Compliance
#2254801 - 06/03/21 04:04 PM Re: Building Not Insurable Per Ins Co. - Force Place? Libby M.
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
If this is a new loan, you cannot force place. Also, why is the building not insurable? Most insurance agents are not too bright when it comes to flood insurance. What do you show as the insurable value of the building?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2254830 - 06/03/21 09:56 PM Re: Building Not Insurable Per Ins Co. - Force Place? Libby M.
Libby M. Offline
Platinum Poster
Joined: Sep 2007
Posts: 604
Mississippi, USA
This is not a new loan. I found this problem during a review. The appraisal I have from 2019 shows the building's value at $17,300. According to the loan officer, the insurance company is saying it cannot be insured due to the condition of the building.
_________________________
Lela Purvis, CRCM/CCBCO/CBAP


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#2254831 - 06/03/21 10:04 PM Re: Building Not Insurable Per Ins Co. - Force Place? Libby M.
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Tell the borrower to find a new agent. There are no building "conditions" for flood insurance. Premiums are based on the amount of insurance based on insurable value, the flood zone, type of building, chosen deductible and elevation.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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