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OT: Jersey shore flood insurance, mortgage?

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rigi19041

Sophomore
Apr 1, 2026
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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
90,132
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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
348
163
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.
 
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R

rigi19041

Sophomore
Apr 1, 2026
348
163
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
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You can get a flood insurance policy based on the proposed drawings of the new home
 
T2Kplus20

T2Kplus20

Heisman
May 1, 2007
32,330
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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?
 
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