The lender and servicer must ensure that the subject property is adequately protected by flood insurance when required. Flood insurance coverage is required when a loan is secured by a property located in. Flood insurance is not required on a principal or residential detached structure securing the loan if the lender or servicer obtains a letter from FEMA stating that its maps have been amended and the structure is no longer in an SFHA.
The following table describes how to evaluate a property to determine if flood insurance is required. For these requirements, the "principal structure" is the primary residential structure on the subject property.
A Policy Declaration page is acceptable evidence of flood insurance. The minimum amount of flood insurance required for first mortgages must be equal to the lesser of. When a loan is secured by a unit in an attached condo or co-op project and flood insurance is required as described in Determining if a Property Requires Flood Insurance , the lender and servicer must verify that the HOA or co-op corporation maintains a master flood insurance policy with premiums paid as a common expense, unless otherwise indicated in the table below.
The only building that must be verified is the subject unit's building. Fannie Mae does not require evidence of a master flood insurance policy, provided the unit owner maintains an individual flood dwelling policy that meets the coverage requirements of this Guide for the following loans or project types:. A private flood insurance policy, or a private flood insurance policy in conjunction with a General Property Form policy or equivalent coverage must be maintained by the HOA to equate to coverage requirements for projects eligible for an RCBAP.
The lender and servicer must verify that the co-op corporation maintains a General Property Form policy or equivalent private flood insurance coverage for a co-op building that is located within an SFHA.
