Flood Rules for Commercial Real Estate

Will your Flood Insurance program pass the next compliance exam? The flood insurance regulations have been around since 1996, yet examiners continue to cite numerous violations and order civil money penalties. What are the sources of the top violations? What are the solutions and best practices?

Flood penalties form May of 2019 to the present have ranged from to $2,700 to $136,000. One of the largest penalties was issued in May 2017 for $1,501,00. Attend this session to help train your staff to understand the rules of coverage and the root causes for common violations, including proper completion of the Standard Flood Hazard Determination Form, controls to require adequate flood insurance coverage, and proving that the Notice of Special Flood Hazards was delivered for each type of “triggering” event. Understanding the fundamentals of flood insurance requirements and adopting strong internal controls will help you to pass this portion of the next compliance exam.

Program Highlights

  • Four fundamentals:
    • Overview & Key Requirements
    • Building an Effective Compliance Management System
    • Common Violations & Consequences of Noncompliance
    • Frequently Asked Questions
  • Problem areas – what are they and how can you avoid making costly mistakes? Portions of the interagency question and answers will be covered. Topics to be covered include examples for:
    • Contents coverage for commercial loans
    • Force placement of flood insurance
    • Map changes
    • Disputing flood zone determinations
    • Flood zone discrepancies
    • Notice to borrower
    • Proof of coverage
  • Flood Insurance Resources – helpful references and tools for compliance
    • Private flood insurance overview and problem areas
    • Detached structures exemption

Who Should Attend?

This informative session is designed for auditors, loan officers, loan assistants, and loan administration staff. This seminar is designed for both those new to flood insurance compliance or more experienced personnel looking for a review of existing requirements.