Certifying Flood Status of Commercial Properties with Multiple Structures
If a residential, commercial or agricultural structure comes into contact with FEMA’s Special Flood Hazard Area (SFHA), that structure will require flood insurance for any federally-backed loan. This is why MyFloodStatus Flood Zone Determinations are structure-based, meaning the official determination is performed on the structure using superior, precise data and highly detailed mapping, confirming whether the actual structure (as opposed to a segment of the land) contacts the SFHA.
Real estate transactions involve the transfer of property ownership. For commercial real estate this may involve multiple structures that are located on one lot.
Read on to learn how multiple structures are addressed by an official MyFloodStatus Flood Zone Determination.
Certifying the Flood Status of Multiple Structures
In cases where multiple buildings exist on a commercial property involving a mortgage from an FDIC-backed lender, each building should be considered by the flood determination provider. The status quo in our industry often robs the buyer, seller, lender or investor of much-needed clarity.
MyFloodStatus has optimized the multi-structure determination process by identifying all affected buildings within a tax lot in one of our Flood Determination Reports with detailed mapping. If the lot in question contains multiple structures with different SFHA statuses, we show on the map which buildings require flood insurance by outlining them in yellow, and we include a comment in Section E of the Standard Flood Hazard Determination Form (SFHDR) further clarifiying the situation.
If a lender is only interested in one building on the tax lot, then WTG can complete a report specifically for that building, and not just the entire tax lot.
Why This Matters
When a multi- structure property changes hands via a mortgage, all eligible structures affected by the SFHA will require flood insurance, however the eligible structures on the lot outside of the SFHA are not required to have flood insurance.
The example above details a property located in New Jersey where the tax lot consists of a restaurant, and a large strip mall building with multiple store fronts. As you can see, the strip mall is affected by the SFHA and will require flood insurance. The restaurant, which is not connected to the strip mall, is outside of the SFHA and does not require flood insurance.
Expert Support Provides Even Greater Clarity
Personalized expertise is crucial in the success of these transactions. With decades of experience as experts in the flood industry, we find that most flood determination companies are missing a personalized approach, and are too focused on quickly producing reports with high automation and little expert oversight, and a reluctance to engage in elite customer service.
At MyFloodStatus, a key component of every report we issue is that it’s backed by the full support of our in-house team of Certified Floodplain Managers (CFMs) and other experts who are always available by phone call, email or online chat.
When you order a MyFloodStatus Report, our team is ready to ensure that you have all the necessary information, documentation and understanding - and therefore clarity and confidence - throughout each and every transaction.
MyFloodStatus is a flood zone determination company. We do not provide flood insurance. Please consult with a flood insurance agent to understand flood insurance premium options. The information provided is for informative purposes only and is not intended to be legal advice or a legal opinion. For legal advice, please consult an attorney.
