There is a commercial loan with multiple structures. There is an airplane hanger on the collateral property with no assigned value by the appraiser. It is in poor condition and is not to be rehabbed in the current phase of construction. Would we have an exception from flood insurance?

Based on what? Market value on an appraisal is not a determinate factor. What is the ACV?

We are being told perhaps $1,000.00, by the appraiser.

It's more of a liability than an asset, at this point.

That still does not exempt it from the flood insurance requirements. I would getting an opinion from an insurance agent.

ok thanks

Also, could it be an option to "carve out" the structure from your collateral (as this is an option under FAQ 24)?

Otherwise, Randy is correct that the flood insurance rules still apply. If you need more information, this article talks about flood insurance on structures with no value and includes Flood FAQ 24: www.compliancecohort.com/blog/flood-insurance-for-structures-with-no-appraised-value