[Anonymous]

Two properties now in a flood zone due to remapping.
1. We have land only as security for our loan. Located on the property is a manufactured home not permanently fixed to the property. No lien was taken and no value given to the home in the appraisal. Do we need to require flood insurance on the home?
2. On another loan we have a barn now located in a SFHA; however, the barn was not mentioned/given value in the appraisal. The SF Residence located on the property is not in a SFHA. Do we need to require flood coverage? If so, how do we figure the amount of coverage required?

[kowsley]

The first transaction described does not require flood insurance because while there is a mobile home on the land it is not affixed to a permanent foundation; therefore, flood insurance is not required.

The second transaction may require flood insurance. You stated that there is a single family residence on the property and that the barn only is located in a SFHA. The barn would typically require flood insurance; however, it may be exempted under the detached structure exemption if the barn is not used for agricultural purposes (used for personal storage for example), is detached completely from the residence, and does not serve in any way as a residence. If the barn can’t meet these three requirements, it would need to be covered by flood insurance based on the lesser of: the loan amount, the maximum required coverage from FEMA, or the replacement cost value.

[Author]

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