We have a loan on some Ag property and we also have taken some UCC (equipment) as collateral. My question is that there is also some OTHER equipment on the property that does NOT belong to our borrower. It is stored in the same buildings, in a flood zone, as our UCC equipment, and it stays there all the time.
Since our borrower does not own this equipment, and it's not part of our UCC, do they have to have flood insurance on it?
My first response is "no", but I hate to guess.
Thank you for any help.

Your first response is correct.