WBA Flood Insurance Checklist

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Flood Insurance Checklists

The following three checklists have been designed to assist staff of various roles in meeting flood requirements: one for use by those who order and calculate flood coverage, a second to help identify whether there are other loan relationships that need be taken into consideration, and a third checklist for use by someone who may be reviewing whether bank's flood procedures were followed.

These checklists are provided as separate Word document so that they can be modified. Because every banking institution is unique, and position requirements vary, these checklists should be edited according to the work associated with the role at each institution. Furthermore, additional considerations may need to be added depending on each institution’s operation, loan policy, and types of lending activities. Review of the rule should be conducted alongside each checklist, and make any changes as necessary or otherwise appropriate for your own use.

Lender, Credit Analyst, or Other Personnel who helps identify loan relationships and whether cross collateral language affects flood insurance

Is bank making, increasing, renewing or extending a loan?

Is loan secured by improved real estate or mobile home that is affixed to a permanent foundation?

Address of property taken as collateral:

Does cross-collateralization language affect this loan and other relationships and loans need be identified and considered when calculating flood coverage?

⬜ Yes ⬜ No, no Federal requirement for flood insurance

⬜ Yes ⬜ No, no Federal requirement for flood insurance

Address of cross-collateralized properties affecting flood insurance calculations

Detached structure or detached structure exemption?

⬜ No

⬜ Yes. Identify which relationships:

Makers: Guarantors: Others: Identify which loans or file numbers: Loan or File Number# Loan or File Number # Loan or File Number #

What Contents Coverage to Include?

⬜ Yes ⬜ No

Explanation:

⬜ Yes ⬜ No

Explanation:

Any Disclaimed Collateral? ⬜ Yes, documented in file as:

Other considerations which may affect flood insurance coverage calculations?

⬜ No

Explanation:

⬜ Yes ⬜ No

Explanation:

Loan Underwriter, Credit Analyst, Lender, Loan Processor or Other Personnel who Orders Flood Determination and Calculates Flood Insurance Coverage

Is bank making, increasing, renewing or extending a loan?

Is loan secured by improved real estate or mobile home that is affixed to a permanent foundation?

Address of property taken as collateral:

Does cross-collateralization language affect this loan and other relationships and loans need be identified and considered regarding flood coverage?

⬜ Yes ⬜ No, no Federal requirement for flood insurance

⬜ Yes ⬜ No, no Federal requirement for flood insurance

Address of cross-collateralized properties: Is there an existing SDHDF in file that can be relied upon?

⬜ No.

⬜ Yes. Identify which relationships:

Maker: Guarantor: Others: Identify which loans or file number: Loan or File Number Loan or File Number Loan or File Number

⬜ Yes ⬜ No

Date SFHDF was ordered: Loan Identifier on SFHDF (put N/A if not used):

If existing SDHDF cannot be used, order applicable SFHDF

Verify property address of loan match flood determination

⬜ Accurate ⬜ If not accurate, date discrepancy resolved__________

Are any properties located in a SFHA?

⬜ Yes ⬜ No

If yes, send notification to borrower Date sent: ⬜ N/A (not in SFHA) Will determination be appealed? ⬜ Yes ⬜ No LODR issued (FEMA has 45 days to ⬜ Yes ⬜ No

respond)?

LOMA or LOMR issued (amendment determinations are issued within 60 days)?

If yes, have you obtained copy of FEMA letter?

⬜ Yes ⬜ No

⬜ Yes ⬜ No

If waiver issued, does loan policy still require flood insurance? ⬜ Yes ⬜ No

If flood insurance is required, has the flood insurance policy been verified?

What type of policy has been issued?

If private, refer to bank’s private flood insurance policy or checklist. Calculate Flood Insurance Coverage, include coverage for contents if applicable

Does detached structure exemption apply?

Contents Coverage Amount

⬜ Yes ⬜ No

⬜ Standard NFIP ⬜ Private

Show work or include calculation elsewhere: ⬜ Yes ⬜ No $

Review documentation which supports results of insurable value Date reviewed: Documents reviewed: Escrow Related

Does the loan require escrow for flood insurance?

⬜ Yes ⬜ No ⬜ N/A (exempt) Which exemption?

If applicable, escrow account to be established Date account to be established:

Delivery option to escrow

If applicable, is escrow data included in loan documentation

⬜ Yes ⬜ No ⬜ N/A (exempt)

⬜ Yes ⬜ No

Loan Processor, Loan Review, Audit, Compliance Officer, Auditor, or other Personnel

who reviews or doublechecks Flood Insurance Steps were Met

Borrower: Loan #: Property Address Securing the loan: Checklist Completed by: Date:

Did bank make, increase, renew or extend a loan?

Is loan secured by improved real estate or mobile home that is affixed to a permanent foundation?

Address of property taken as collateral:

Does cross-collateralization language affect this loan and other relationships and loans need be identified and considered regarding flood coverage?

⬜ Yes ⬜ No, no Federal requirement for flood insurance

⬜ Yes ⬜ No, no Federal requirement for flood insurance

⬜ No.

⬜ Yes. Identify which relationships:

Maker: Guarantor: Others:

Identify which loans or file numbers: Loan or File Number# Loan or File Number# Loan or File Number#

Address of cross-collateralized properties:

Was there an existing SDHDF in file that was relied upon?

⬜ Yes ⬜ No

⬜ Yes ⬜ No If not existing SFHDF was used, was flood determination ordered?

Date SFHDF ordered: Loan Identifier on SFHDF (put N/A if not used): Are any properties located in a ⬜ Yes ⬜ No

SFHA?

If property located in SFHA, was notification send to borrower

⬜ Yes ⬜ No

Date notification was sent:

Was determination appealed? ⬜ Yes ⬜ No

Was LODR issued (FEMA has 45 days to respond)? ⬜ Yes ⬜ No

Was LOMA or LOMR issued (amendment determinations are issued within 60 days)?

If yes, was copy of FEMA letter obtained?

If waiver issued, does loan policy still require flood insurance?

If flood insurance is required, was the flood insurance policy been verified?

⬜ Yes ⬜ No

⬜ Yes ⬜ No

⬜ Yes ⬜ No

⬜ Yes ⬜ No

Type of policy issued? ⬜ Standard NFIP ⬜ Private

If private, was bank’s private flood insurance policy or checklist followed?

Calculate Flood Insurance Coverage, include coverage for contents if applicable

Did detached structure exemption apply?

Contents Coverage Amount

Does documentations support results of insurable value?

Was escrow for flood insurance required for the loan?

Was escrow established?

⬜ Yes ⬜ No

Was calculation included in file? ⬜ Yes ⬜ No

Calculation Coverage Correct? ⬜ Yes ⬜ No

⬜ Yes ⬜ No Amount: $

Date reviewed: Documents reviewed:

⬜ Yes ⬜ No

⬜ Yes ⬜ No

Delivery option for escrow provided ⬜ Yes ⬜ No ⬜ N/A (exempt)

Applicable escrow data included in loan documentation? ⬜ Yes ⬜ No

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WBA Flood Insurance Checklist by wisbank - Issuu