Hi all,

We hit a snag when trying to approve a flood loan for closing. The property has a guest house with its own separate policy -- the house is sufficiently covered at the max amount (250). The guest house is covered for $50,000, but we're struggling to verify whether this is sufficient coverage. We're being told the guest house is covered via "Other Structures" on the hazard policy ($334,000), which is the 10% of dwelling coverage. But there are many other structures on the property besides the guest house -- the guest house is just the only other residential structure on the property.

We're in the process of trying to get more info, but has anyone ever encountered this type of scenario before? A guest house with its own flood policy, but not its own hazard?

The appraisal doesn't even mention value of the guest house.

Then I say you have a faulty appraisal. How can you possibly have a USPAP compliant appraisal if you have a guest house that is not even mentioned, or the value taken into consideration? If this was just an evaluation, I would say the same thing. So, you have no idea of the square feet of the guest house or the cost of construction and depreciation of the property?