July 2015 Flood Final Rule – If the detached structure exemption could apply, can we still require insurance?

Compliance > Lending > Flood > 2015 Flood Final Rule - Detached Exemption
Q:   If we have a situation where the detached structure exemption is available, may we still require flood insurance?
 
A:  Yes.  In situations where the statute does not require flood insurance for such structures, as a matter of safety and soundness, lenders may nevertheless require coverage on these detached structures, and that such coverage also may be in the borrower’s best interest.
 
 

This can be found in the July 2015 Final Rule on Loans in Areas Having Special Flood Hazards, here:  https://www.federalregister.gov/articles/2015/07/21/2015-15956/loans-in-areas-having-special-flood-hazards

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