Good morning,

I just want to double check that Flood insurance would indeed be required on a little shop building detached from a customer's primary residence if he is using it for a commercial purpose (work on lawnmowers).

The customers are wanting to drop insurance on the shop and the loan officer is looking for a way out of it.

Thanks

The detached building exception only applies to an outbuilding that is used for consumer, family or household purposes.

Loan officers do not like to utter the words, "I am sorry, but we cannot help you with that."

So true!

So on a "residential" building. When would you ever need multiple buildings covered? On our flood worksheet it has a place for 4 buildings (and I'm sure it was created before this exemption) but it made me wonder. When would you ever need more than one building coverage for residential? The building would be classified as "non-residential" if it was used for anything other than personal use.

I have no idea what your spreadsheet looks like or what you use it for. But if the shop referred to in the title of this thread is not used for personal, family or household purposes, such as they ran an actual business out of it, it would have to have a separate non-residential policy. If there was a standalone ADU on the property, you would also need multiple residential policies.