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The Flood Insurance requirements apply when a property securing a loan is located in a Special Flood Hazard Area (Zone A or Zone V). There are a few exceptions to these requirements, but not many. One of those is the detached-structure exemption. This basically says that a financial institution does not have to require flood insurance on certain structures that meet the definition of a “detached structure” and that do not serve as a residence. There are also rules that come into play for detached garages; however, this is more of a NFIP policy provision rather than an exception.
Jerod explains the detached garage provision in the video.
Published
2022/05/05