[Kimberly Boatwright, CAMS, CRCM]

The rules are written as follows:

According to the final rule, “a structure that is part of a residential property” refers to a structure used primarily for personal, family, or household purposes and not used primarily for agricultural, commercial, industrial, or other business purposes. In instances in which certain structures are used for both residential and business purposes, the exemption applies only to structures with a primary residential purpose. A structure is “detached” if it stands alone, meaning it is not joined by any structural connection to the residential structure. Furthermore, the detached structure may not “serve as a residence.”

Based on how I’m understanding your questions:
1. The house would be required to have insurance because it is used as a residence.
2. The fact that is not a personal residence of the borrower would not exempt it from insurance.
3. The rules do not speak to a limit on structures – only to being used as a residence.
4. Neither the garage or the storage buildings sound as if they are used as a residence.

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