Flood Insurance Force Played by Your Lender?

January 19, 2015

(All content, images, and text courtesy of classaction.org.)

 

Property owners who were forced or coerced into buying excessive flood insurance by their mortgage company or bank.

 

Damages

Property owners who had an unnecessary or excessive flood insurance policy force placed on them may be able to participate in a lawsuit to seek compensation for the additional costs of this coverage.

Most residences in Special Flood Hazard Areas are already insured by flood insurance policies. If a bank or mortgage company forces a property owner to buy an additional insurance policy, the consumer is paying for a second policy which is valueless to the consumer, as the National Flood Insurance Program ("NFIP") will not pay twice for an insurable loss.

Property owners who were forced or coerced by their mortgage company or bank into purchasing excess flood insurance may have legal recourse to seek compensation for the high costs of these policies. Allegedly, certain banks and mortgage companies have been force-placing expensive, and often unnecessary, flood insurance policies on property owners, many of whom already meet the insurance coverage requirements of the National Flood Insurance program. Furthermore, lawsuits for bank flood insurance complaints have claimed that these companies may be receiving kickbacks or commissions when they purchase these additional or excessive policies, the cost of which is added to the homeowner's monthly mortgage payments, deducted from the home equity account or otherwise expensed to the borrower.

If your mortgage company or bank force placed an excessive flood insurance policy on your property, you may be able to file a claim seeking financial compensation.To find out if you are eligible, complete our free, no obligation case review form today with details of your mortgage company flood insurance complaints.

Force Placed Flood Insurance Lawsuits

Consumers may be eligible for a force placed flood insurance lawsuit if their bank or mortgage company forced or coerced them into:

  • Purchasing costly flood insurance in excess of what is required by law

  • Paying for or maintaining more flood insurance than what is outlined by their mortgage agreements

  • Paying for a forced-placed second insurance policy after having an acceptable flood insurance policy refused

  • Purchasing a second flood insurance policy even though they were already covered by an existing flood insurance policy through a condominium association or otherwise

Lawyers for Force Placed Flood Insurance Complaints

Wells Fargo, FlagStar, GMAC Mortgage, Bank of America and JPMorgan Chase are among the establishments who have been hit with forceplaced flood insurance lawsuits. Even if you took out a mortgage loan from another bank, you may still have legal recourse if you were subjected to unlawful practices in regard to force placed flood insurance. If you had an excessive flood insurance policy forced place on your property, find out if you qualify for a force placed flood insurance lawsuit by completing our no cost, no obligation case review form today.

 

To view this original article, please follow the link: http://www.classaction.org/force-placed-flood-insurance

 

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