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#2242213 - 09/09/20 08:24 PM Construction Loan & existing building
scb2011 Offline
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Joined: Mar 2011
Posts: 258
TN
Our loan will be to construct a duplex on a lot where almost the entire lot is in a SFHA. There is a building on the property that will be destroyed after origination. Isn't flood insurance required on the existing building until it is demolished? Would we be able to get flood insurance on the duplex prior to origination in this situation?

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Flood Compliance
#2242217 - 09/09/20 08:35 PM Re: Construction Loan & existing building scb2011
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Yes on the building that is going to be demolished. If you don't get a flood policy on the duplex at the time the loan is made, there will be a 30 day wait on the effective date of the policy.
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