Recently the bank has had several loans with flood map revisions into a Special Flood Hazard Area. Some of these customers already have a flood
policy in place, however the policies list the SFHA as zone "X". We have been told by two insurance agents that the insurance company cannot revise
the policy until the renewal of the policy term. As of now, if we do not receive the revised flood policy reflecting the correct flood zone, we will
continue with the force place process. Please advise if the insurance agent/company can revise the flood policy reflect the new SFHA, or if that
is not an option that is available to them?
When there is a mortgage on a non-residential condo unit and the property requires flood insurance which is provided by the condo association, what is the best practice for the mortgagee on the unit so as to be notified if a lapse in coverage occurs? Our borrower has the inside of the unit covered for flood, but the condo association is not otherwise providing us with information on the common areas its policy covers.
We have a construction loan where the vacant land is partially in an AE zone and partially in an X zone. The borrower has sent us a site map showing that the plans are to build in the X zone. Are they still required to obtain flood insurance? Or do we need to wait until construction is complete?