Flood Insurance & Low-Value Buildings
A common misconception regarding flood insurance is that low-value buildings do not require flood insurance. This is simply not the case. It’s quite common to have a lender or insurance agent say, for example, there’s a small shed on the property but it’s not worth anything. Or, maybe the appraisal comes back without assigning any value to the shed. That doesn’t matter. Any walled and roofed structure securing a loan that is located in a Special Flood Hazard Area must have flood insurance. While there are some exceptions, they really don’t come into play all that often. For instance, if the building can’t be insured or the value is less than the lowest available deductible, you can’t get flood insurance. Or, if the building meets the requirements to be considered a “detached structure”, you may not need to require insurance. In any case, the burden of determining a building’s value ultimately lies with the lender/financial institution.
Jerod explains more in the video.
2025/04/13
Jerod Moyer
Jerod is the leader of Banker’s Compliance Consulting’s training productions. He is a nationally recognized speaker. Whether it’s a conference, seminar, school, webinar or luncheon, it’s easy to stay engaged when he presents due to the amount of passion and energy he brings to each and every compliance topic. Jerod has spoken on behalf of the American Bankers’ Association, BankersOnline, many state banking associations, private compliance groups and financial institutions. He is a Certified Regulatory Compliance Manager (CRCM) and BankersOnline Guru. Jerod likes to spend his time (between reading regulations and producing compliance training!) relaxing at the lake with his wife and three children, following their activities or engaged in something sports-related!