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gunzijjistaff · Joined: 07 Apr 2009 Posts: 712 4.51 Dollars($)

i think if mortgage company is forcing you for the payment then they should also take some part in the payment of the premium of the flood insurance .they also owe the property don't they?

gmakerley · Posted: Sat Apr 11, 2009 8:53 am Post subject:

wow (again and again)

no, a mortgage lender who provides the funds for a person to purchase a home DOES NOT own the house also.

flood insurance is required if a property is in a flood hazard area; this is mandated by the federal government. and, of course, it provides protection for the homeowner.

you're off base here, gunz.

Guest

my lender is forcing me to get 100% replacement value of house in flood insurance! mortgage is upside down!! I did not finance 100% so why should i have to pay for 100% of insurance, I heard this was not legal. help please.

gmakerley · Posted: Tue May 12, 2009 10:23 am Post subject:

it is legal, e.

insurance must cover the entire replacement value in order to be valid, in any circumstance. the mortgage balance and the value are not necessarily ever the same number.

eric1 · Posted: Tue May 12, 2009 7:48 pm Post subject:

Under these conditions, it would make much more sense to buy an existing home than building a new one.

gmakerley · Posted: Wed May 13, 2009 1:13 pm Post subject:

not necessarily eric. in our area, we have a lot of large, old homes. replacement cost on them is astronomical in many situations, due to the materials, etc. that went into them. to try to rebuild some homes would be substantially higher than building a new home to different specifications would be. the insurance costs, as a result, sometimes go over the rainbow. sorry - not sure if that's an appropriate metaphor.

Guest

Katrina happened because the government refused to fund the needed improvements to the dikes and now they are forcing us to pay for their screw up.

We live in a tiny house that is worth $130,000.00 including the land and we just got a bill for $1526.00 for this years flood insurance and that is with a $5,000.00 deductible. That computes to another $127.00 a month tacked on to my mortgage payment.

The government has found a way to legally extort money from us and decrease our standard of living.

Guest

It you are rich enough to build on the beach then you should have to cover your own loses in a storm. We (who live no where near the beach) are being forced to pay high premiums for both flood and homeowners insurance and it is to a great degree driven by the repeated replacement (up to $250,000.00) of rich people's beach houses and many of those houses are just the owners vacation homes. It's not if their houses will be damaged; it's when. If you are not rich enough to cover the guaranteed future damage of your home you should have sense enough to build elsewhere and if you are rich enough I don't want to pay for your house damage.

Posted: Mon Mar 22, 2010 8:30 pm Post subject:

I am in an area that has been updated,my understanding,and this area has NEVER flooded.How can they make you pay more than what you owe on the house?That isn't right!!!!!!!!!!!

Posted: Mon Mar 22, 2010 8:36 pm Post subject:

It is a racquet! They are forcing people that weren't told previously to pay flood insurance.I spoke to an attorney the other day and they said it doesn't even cover anything unless the home is swept off the foundation.If they want the homes in these ares guys,lets' let em have them.Like everything else,we are at the mercy of these ignoramouses.It is covering those on the coast that chose not to move.This is crazy!

gmakerley · Posted: Mon Mar 22, 2010 8:50 pm Post subject:

was that squash or tennis?

Guest

Flood zone A (the highest risk) is the biggest rip off of them all! Your house could be setting on stilts and they will still charge you the same outrageous price because the flood elevations are undetermined!

Guess what else, you can have the house you live in grandfathered to reduce rates but only if you have been paying flood insurance all along. Excuse me, if I can afford to buy flood insurance whether I am listed in a flood zone or not I get rewarded but if I can't then I get to pay the highest possible rate which I can afford even less! Pure extortion is what it is!!!

Guest

I was recently informed that I need to purchase additional flood insurance. I have 2 mortgages with the second one being with Bank of America with about $25,000.00 owed. My primary mortgage is with Elmira Savings Bank (Elmira, NY) and all taxes and insurance is held in escrow through my mortgage payments. I am covered for $153,000.00 for fire and $33,000.00 for flood with State Farm and this easily meets all state requirements as far as I know. Bank of America seems to think that I should be paying flood insurance for the full $153,000.00 that I am covered for fire. They also state that if I don't provide proof that I have increased my insurance to this amount that they will buy it for me. Is this legal? My insurance agent argued with BoA for 45 minutes with no success and told me he understands flood insurance but has never heard of this before.

smithsussane · Posted: Thu Aug 12, 2010 3:10 am Post subject:

Hi DWes!

Welcome to forums!

You need to contact the State Department of Insurance (DOI) in order to know if you fall within the flood prone zone and whether or not you require any additional flood insurance. You should also check whether the insured amount meets the required state specifications. If you meet the required state specifications, then you should inform the lender about the same and show him the documents regarding your insurance coverage. This might convince the lender and you won't have to go for any additional insurance coverage.

Feel free to ask if you've further queries.

Sussane

Guest

i paid flood insurnace for 20 years i chosie what i wanted from fema, then we add added second and garage bank made me buy ins to cover value of the home not the new morgage, did some check wasn't in flood for about 20 yrs droped ins. now fema put me back in flood zone bank wants 80%value of home covered $1300. my first floor of the house is above there measurment but not land it doesn't seem fair

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Can your mortgage company force you into buying flood insurance?