04/28/2024
On our commercial loan agreements, we are using fixtures as collateral in a blanket security statement. Does this mean we need contents coverage on the flood policy? I read somewhere that Fixtures = Contents.
05/08/2022
In reviewing the FEMA manual and Flood Act requirements, I don't see any carve-outs for old "placeholder dwellings" (dilapidated structures).
Our policy has been that if they have two walls and a roof and they are in a flood zone requiring insurance, it must be purchased. We are running into insurance agents who are saying that homes have a lifespan of 40-60 years so if the home is 60 years old, that the percent of life left is 0 and as such, there is no Actual Cash Value, even when a picture of the dwelling shows it is still standing. Are you aware of any basis for accepting an agent's statement that there is $0 ACV based on the age of the home and lack of upgrades to avoid requiring flood insurance?
12/22/2019
Recently the bank has had several loans with flood map revisions into a Special Flood Hazard Area. Some of these customers already have a flood
policy in place, however the policies list the SFHA as zone "X". We have been told by two insurance agents that the insurance company cannot revise
the policy until the renewal of the policy term. As of now, if we do not receive the revised flood policy reflecting the correct flood zone, we will
continue with the force place process. Please advise if the insurance agent/company can revise the flood policy reflect the new SFHA, or if that
is not an option that is available to them?
02/05/2017
When there is a mortgage on a non-residential condo unit and the property requires flood insurance which is provided by the condo association, what is the best practice for the mortgagee on the unit so as to be notified if a lapse in coverage occurs? Our borrower has the inside of the unit covered for flood, but the condo association is not otherwise providing us with information on the common areas its policy covers.
06/07/2015
We have a construction loan where the vacant land is partially in an AE zone and partially in an X zone. The borrower has sent us a site map showing that the plans are to build in the X zone. Are they still required to obtain flood insurance? Or do we need to wait until construction is complete?