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FDIC Special Situation Clause Multiple Structures

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We have an Ag Loan that has five parcels secured by one loan. When running the flood determination, it shows that two of the parcels are in a SFHA. Out of the five, the two that are in the SFHA have structures on them, a mobile home (permanent foundation) a dwelling, and two equipment/storage sheds. We have flood insurance on the mobile home and the dwelling. My question is are we suppose to have a separate policy for each and every structure on the parcel or can we go by the FDICs special situation clause where it states for multiple structures that secure a loan FEMA does permit borrowers to insure nonresidential buildings using one policy with a schedule separately listing each building or do we have to have a policy for each storage building?

The two storage sheds either need a separate policy or a scheduled policy listing both sheds. Scheduled policies are rarely issued, but it is possible to obtain them through NFIP if the borrower's insurance agent knows how to do it.

First published on 6/17/13

First published on 06/17/2013

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