Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Can your mortgage company force you into buying flood insurance?

Posted on: 25th Oct, 2008 04:47 am
I have been paying my mortgage with the same concern for over 15 years without flood insurance. My land is considered zoned in flood plains although a flood has not happened in twenty years. Could I just not suffer the loss if indeed a natural disaster (flood) happens again.
Bank of America forced flood insurance on my house. They informed me that my house was located in Flood Zone A (flood plains). I gave them proof that my house was in Flood Zone X with an official letter from the town's Dept of Public Works. Flood zone X is safe. But that was not good enough for them. So, I made them spend a fortune in paperwork analysis and flood insurance coverage for my house then I dumped them when I took my mortgage to my credit union which recognized that my house was located in Flood Zone X. I made the switch at no cost to me, but it cost Bank of America everything. I'm a happy home owner now with no worries.

8)
Posted on: 28th Oct, 2010 04:34 pm
Flood insurance is a joke in many cases, FEMA maps says my address is in a flood zone and my survey map shows the hundred year flood line at my mailbox yet my house is 28' higher than that. Talking to FEMA and my morgage company is like banging your head against a stone wall, they won't come out and even look, so I am not paying it and will take it to court.
Posted on: 31st Oct, 2010 04:44 am
What ticks me off is I only have $35K balance on my mortgage and FEMA MAKES me have $187K coverage...that is NOT right and a rip off. We had a huge flood here in 1994 and my house did not flood.
Posted on: 06th Nov, 2010 06:22 am
i am currently going through a refinance on a home i have lived in for the past 5 years. we have not had flood insurance due to not being in a floodplain even though part of the land is. our mortgage company for our current loan and whom we are refinancing with now tells us we need flood insurance. we paid a surveyor to evaluate our home due to the changes fema has made in the maps. it was determined our home is still not in a floodplain. our mortgage company who is the same company doing our refinancing has recently sent us a letter stating they have purchased flood insurance for us through lloyds and we now owe them over $2000.00. however the individuals we arwe working with have agreed our home is not in a floodplain and we do not have to obtain flood insurance. same company but different opions. what should we do to apeal this????
Posted on: 03rd Dec, 2010 06:38 pm
Hi dfthomas,

You should contact the lender and let him know about the surveyor's opinion regarding your property. You may even ask the surveyor to have a word with your lender. This may help you in convincing the lender and the flood insurance can be dropped.

Thanks
Posted on: 03rd Dec, 2010 10:35 pm
Been in my condo for over 11 years and never needed flood insurance. When I bought it, the lender nor anyone else even mentioned it. Why now, after about 9 years was I forced by bank of america that I had to purchase flood insurance in 30 days?If not, they would charge me a huge price! Called everyone I could think of about this, my lender, USAA (whom I finally had to purchase it from), yeah, right! Even called my condo association and they never had flood insurance and said I didn't need it.

Honestly, I believe the government forced the banks to do this. No proof but this was back a while when the whole thing was beginning to fall. Forclosures, etc. I think the government just wanted some more money.

My last payment was in August (every year), and so funny after several days, bank sent me a letter saying I didn't need it anymore! Too poor to get a lawyer.

Anyone who tells me that they can do this is wrong, sorry. Not moral. Greedy and treats people like crap. You must be working for the bank or government themselves. Never missed a payment. Great track record, but I am strapped. Oh yeah, I never did get a refund after being told I didn't need it. USAA told me it was because of the flood insurance regulations. Let's see what happens next year. If they say I need it, I will bring it to the media.
Posted on: 27th Dec, 2010 09:41 am
My mortage remaining is 75,000. My flood insurance coverage is 130,000. The mortgage company says that they want it increased to 140,000. If my home is flooded the insurance company will get their money and I will have to contend with the rest. Can they force me to increase and what is the reason for it validly? Hope that the answer will not be because they can do want they want. Tks
Posted on: 05th Feb, 2011 11:55 am
now i can see why fema denied my loma after i paid a land surveyor which claims that my property is not in the flood zone they want me to pay for urricane catrina damaged there's no river behind my house only a storm drain a block away from my house
Posted on: 02nd Mar, 2011 09:15 pm
Page loaded in 0.081 seconds.