Compliance: Is flood insurance still required for detached structure?
April 2, 2015
WASHINGTON (4/3/15)--The compliance experts at CUNA have been queried recently about the state of National Flood Insurance Program requirements for detached structures: Is flood insurance still required for buildings like stand-alone garages?
In an April 1 CUNA CompBlog posting, Senior Director of Compliance Analysis Valerie Moss answers that the mandatory insurance-purchase requirement was dropped for any such buildings meeting the following description: a structure that is a part of a residential property but is detached from the primary residential structure and does not serve as a residence.
The exemption was effective immediately upon enactment of a 2014 law even though that law-- The Homeowner Flood Insurance Affordability Act (HFIAA)--has not yet been fully implemented.
Moss clarifies that the exemption does not preclude a lender from requiring flood insurance for a detached structure of high-value, a move that could protect lender and borrower alike.