[pcorder]

We are doing a commercial loan on 200 acres of property and timberland. It doesn’t have any barns on it, but there is an above ground well house on the property. Would a SFHDF be required on this one? It seems trivial, but the flood requirements have been, and will continue to be a hot spot it seems. Thanks for your assistance!

[rcooper]

pcorder – thanks for the question.

It sounds like you will have a building, as defined under the flood regulations, as collateral and if it sits in a flood zone, flood insurance would be required. Unless you plan to carve out the section of land with the well house from your collateral (not that I’m advocating this because it isn’t practical and in most cases would diminish the collateral) you would need to pull a SFHDF.

And since it isn’t part of a residential property the detached structure exemption would not apply.

[pcorder]

Thank you rcooper! That’s what I was afraid you would say. lol

[Author]

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