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Calculating Flood Insurance On A Duplex

Answered by: 
Randy Carey
John Burnett

Question: 
How do you calculate flood insurance on a duplex where the borrower is purchasing both and they will live in one as their primary residence and the other side will be a rental? There will be two separate purchase loans; one for the primary residence and one for the rental. Does it make a difference if it is titled differently vs titled the same?ra
Answer: 

by Randy Carey: I'm not sure how you have a duplex and both halves of the property being separately titled. A duplex is one property with one 2 family residential structure located on the property. As such, the two residences would have to be insured under one policy.

Answer: 

by John Burnett: The duplex would have to be subdivided -- actually, condominiumized -- for the borrower to purchase the two units separately.

First published on 12/18/2016

Filed under: 
Compliance
Filed under compliance as: 
Real Estate Lending
Flood

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