Issue Funds Before Flood Insurance Is In Place?

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Question:

Borrower is building a camp on pilings and flood insurance is not available until elevation is determined. Can any funds be issued before flood coverage is in place?

Answer:

No. Flood insurance can be issued on a not yet constructed building using estimated elevation and estimate value. When the flood policy is renewed (after construction is complete), then actual elevation and value are needed. Have the insurance agent check the Flood Insurance Manual for more information.