The loan officer requested an appraisal for land value only (AV $2 Mil). The property (in a SFHA) is improved. The DOT does not specifically exclude the improvements. The fee simple owners (our borrowers) have sold the business they formerly operated on the property and leased it. Flood insurance required or not??????

SInce they still own the real estate and it has not specifically been excluded on your DOT flood insurance IS required.

If there are improvements that you may insure (walled and roofed building, tied down mobile home, etc.) and they are your collateral (which they are since they're not excluded) you must go through the flood hoops. You'll also need the buildings values so the appraisal may need updating.

FYI, flood fines exceed $900,000 YTD.