We have a property deal where Entity One is the borrow on a loan. Entity Two is the guarantor and owner of the building on the property, which happens to be in a flood zone.

Our question is this: In whose name does the flood insurance needs to be, Entity One (borrower on property loan) or Entity Two (guarantor and building owner)?

Thanks!

Shooting from the hip here but I don't see how any insurance company would place a policy in a non-owners name.

My vote is entity two.

That's the way I'm leaning as well after having re-read Reg H.

Thanks for your response, Norman!

Flood Manual - General Requirements, Page 14

F. Tenant’s Coverage
1. Building Coverage
The building owner must be named on the policy. If building coverage is purchased by a tenant due to a lease agreement, the tenant may also be named on the policy. Coverage for contents owned by the tenant must be written on a separate policy in the name of the tenant only. Duplicate coverage is not permitted under the NFIP except as explained under G. Duplicate Policies

Thank you, Randy! Much appreciated.