Toggle sidebar

OT: Jersey shore flood insurance, mortgage?

R

rigi19041

Sophomore
Apr 1, 2026
342
161
43
Would a mortgage company still require flood insurancee on a house that is a teardown?


Let's say a property lists for $2M. Land is worth $2.1M and house is worth -$.1M. Value is all in the land.
 
Knight Shift

Knight Shift

Heisman
May 19, 2011
90,038
87,967
113
rigi19041 said:
Would a mortgage company still require flood insurancee on a house that is a teardown?


Let's say a property lists for $2M. Land is worth $2.1M and house is worth -$.1M. Value is all in the land.
Click to expand...
Likely yes.

Call Connelly Campion and Wright in Belmar. They know their stuff here.
Or ask a mortgage broker.
Or ask Grok

The short answer is probably- a bank is giving you a loan on a property that includes a house. They want the entire asset insured.
 
R

rigi19041

Sophomore
Apr 1, 2026
342
161
43
Knight Shift said:
Likely yes.

Call Connelly Campion and Wright in Belmar. They know their stuff here.
Or ask a mortgage broker.
Or ask Grok

The short answer is probably- a bank is giving you a loan on a property that includes a house. They want the entire asset insured.
Click to expand...


I'm thinking the bank simply wants the value of the loan covered. The property would have more equity than the loan. A teardown is unique and the property would probably be worth more if the house washed away.
 
  • Like
Reactions: Knight Shift
R

rigi19041

Sophomore
Apr 1, 2026
342
161
43
Jtung230 said:
If your intent is to tear it down and rebuild, think you can get a construction to perm loan. It will have more flexibility on insurance.
Click to expand...


Most buyers would tear it down.

I would slap a coat of paint on it and use it for 20 years and maybe tear it down way down the line.
 
R

RUBubba

All-Conference
Sep 4, 2002
4,996
2,736
113
You can get a flood insurance policy based on the proposed drawings of the new home
 
T2Kplus20

T2Kplus20

Heisman
May 1, 2007
32,314
20,217
113
rigi19041 said:
Would a mortgage company still require flood insurancee on a house that is a teardown?


Let's say a property lists for $2M. Land is worth $2.1M and house is worth -$.1M. Value is all in the land.
Click to expand...
Can't you just paid the current owner to tear it down and then buy the land with no house?
 
You must log in or register to reply here.
The Knight Report

Latest

  1. 01 The Knight Report Examining the 2026 Rutgers Football Over / Under Win Total
  2. 02 The Knight Report Rutgers Football Fall Camp: Get 75% off The Knight Report - Final Day!
  3. 03 The Knight Report B1G Network Training Camp Tour Recap + Wydeek Collier Dismissed - TKR Pod
  4. 04 The Knight Report Rutgers Football WR KJ Duff Named to Biletnikoff Award Watch List
  5. 05 The Knight Report The 2026-27 Rutgers Women's Basketball Schedule
Top Bottom