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Condo Unit w/ Hurricane Damage- Flood Insurance

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I have a loan on a condo unit which had hurricane damage. Because of the damage, all of the units have been demolished and it is in the process of being rebuilt on stilts. The property is in the Florida Keys and is in flood zone AE. Normally I would require proof of flood insurance once the slab has been poured, but all of the units are being rebuilt on stilts. No slabs will be poured, instead concrete pillars will be going in the ground. At what point do I need to ensure that there is flood insurance and that I have sufficient coverage? I assume if the condo does not purchase coverage I will have to force place?

Until the condo association is formed - all you can get on the building is $500,000 regardless. I would be looking at private insurance from a credit risk perspective.

First published on 10/27/2019

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