Q: When there is more than one building on a property, should the flood determination be ordered on the property address? If so, and the determination is that the property is in a flood zone, should we then order a determination on each building to determine which building or part of a building is in a flood zone or does the initial determination have to be run on each building?
A: The lender should verify with the third party which properties are included for the address. It is likely that you may need to order a SFHDF for each building. Per the SFHDF instructions: MULTIPLE BUILDINGS: If the loan collateral includes more than one building, a schedule for the additional buildings/mobile homes indicating the determination for each may be attached. Otherwise, a separate form must be completed for each building or mobile home. Any attachments should be noted in the comment section. A separate flood insurance policy is required for each building or mobile home.
– This Q&A was included in the materials from the FDIC New York Region Regulatory Teleconference: “Flood Insurance – Flood Insurance Compliance and an Examiner’s Perspective” which took place on December 3, 2012. These materials may be found here: https://www.fdic.gov/news/conferences/NY/2012-12-03.html