Be sure to JOIN US on June 18, 2020, for our webinar, “Condominium Flood Insurance”.
If you’ve ever had to deal with flood insurance on a condominium, you are probably very aware that it’s a whole different ball game. Condo flood insurance has a lot of additional complexities and quirks that you don’t see when obtaining insurance on other types of structures. For instance, can you force place flood insurance on a residential condo?
Click on the video to listen to Jerod explain more. A transcription is provided below.
Are the rumors really true? Is flood insurance really that much more complicated when it comes to condominiums and flood insurance either. This is Jerod Moyer with Banker’s Compliance Consulting. Unfortunately the rumors are true. Flood insurance is just a little bit more complicated when it comes to condominiums than it is with other types of structures. Let me get to the solution. Right out of the gate we’re going to be providing a one hour webinar where we’re going to bring to you those complexities about flood insurance and condominiums all in plain English. So that’s the solution. Let’s talk about some of the quirk factors as it relates to flood insurance and condominiums. I’ll share with you one, we’ll get to the rest of them when we get into the webinar, but the one I want to share with you is just like any other type of property, you have to monitor to ensure that the condominium is insured for the life of the loan to meet the lesser of calculation.
Well, what happens if you have a condo that’s not insured for the life of the loan and you identify that? Well, you’d have to give them a 45 day notice just like any other transaction, but what happens at the end of the 45 days if they haven’t purchased flood insurance in the amount equal to the regulatory requirement? Can I force place? The answer is maybe it depends. You see, if it’s a residential condominium building and you’re looking to obtain an RC bap, a residential condominium building association policy, which is the best flood policy you can get for condominiums of the residential variety, you need to know that you can’t force place that type of policy. You’ll have to find another Avenue and there are other avenues for forced placement on those types of structures, but you’re not going to be able to force place an RC bap policy. This is just one of the many things that we’re going to talk about and hopefully bring to you the plain English solution on as it relates to condos and flood insurance in that upcoming webinar. I’d love to have you get your team registered and join us as we go on that journey. I hope to see you there.
See All FREE LENDING TOOLS