[Anonymous]

Scenario:
Contents of a building is taken as an “abundance of caution” collateral….the building is in a flood hazard area…. but the building itself is not taken as collateral. Would the bank need to require flood insurance on the contents?

Topic

[rcooper]

Flood insurance is required on contents when the building the contents are in is also taken as collateral. If you know the building housing your collateral is in a flood zone wouldn’t you want your collateral insured?

[Anonymous]

But the building itself was not taken as collateral………….just the contents. Is flood insurance required on the contents?

[Author]

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