No, the flood insurance requirements do not permit waivers of flood insurance. If a loan is secured by a building located in a special flood hazard area, then the National Flood Insurance Program (NFIP) requirements apply and the property must be insured. 12 CFR 339.3(a). We are not aware of any exceptions to the flood insurance requirements based on waivers or any other representations by the borrower.
Can the flood insurance requirement be waived on a commercial real estate property if the borrower can show the ability to rebuild without the insurance?
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