I'm confused.

The FEMA's Mandatory Purchase Guidelines state: "Only one building may be insured under one NFIP policy. Each building securing a loan must be covered by a separate policy."

The OCC's Exam Manual states: "FEMA does permit borrowers to insure buildings using one policy with a separate schedule that lists each building."

So.... which one is correct? I know the Guidelines are more current, but am still unsure.

I think they both are. The separate schedule policy (which is rare) lets a borrower put several properties on one policy using schedules which list each property separately. It's like you have multiple policies bundled into one master policy vs. having multiple policies being written on each individual property.

Thanks, CF! I was actually looking at a policy with multiple schedules.

I really wish the agencies would update their examination manuals to match the new guidelines better..

*bump*

For a somewhat related question:

The NFIP Dwelling form says the policy does not cover "detached garages" unless it is taken as part of the building coverage up to 10%. Is this something you have to require the borrower to do to cover all buildings on the improved property (the dwelling form says it is optional as it takes away from the coverage of the dwelling)?

Anyone have any knowledge or experience with this?

If the detached garage does not meet the conditions of the policy, you need to require a separate policy.

Thanks, David!