When is the notice required to be sent in a construction loan? Within a reasonable time prior to making the main loan, or within a reasonable time prior to approving the advances? Thanks,

You have to give them notice prior to making the loan. I'm not sure what advances have to do with it.

thanks

You are likely confusing the requirement for insurance with the giving of the notice. You can either require insurance prior to closing OR prior to the point when the structure triggers insurance. It is a heck of a lot easier to require a builders policy prior to closing than to have to monitor for that specific point when their is enough of a structure to require flood, and possibly holding up the project pending receipt of insurance.

Not to mention the 30-day delay in the effective date if the policy is not purchased prior to loan closing.

That too! That would most certainly delay further work.