Forced into Buying Unnecessary Flood Insurance?
Last Updated on May 1, 2020
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ABN AMRO Mortgage Holders: If you were forced or coerced into buying an excessive flood insurance policy, you may have legal recourse to collect financial compensation. Class Action.org is investigating allegations that certain mortgage companies have been forcing loan holders to purchase or maintain flood insurance policies which are unnecessary, overly expensive, or otherwise excessive. ABN AMRO Mortgage Corp. has not been named among the mortgage companies engaging in these questionable practices; however, many homeowners who have taken out a loan from other establishments have complained that they were forced into paying the high premiums of an unnecessary, second or excessive flood insurance policy.
Force Placed Flood Insurance Lawsuits
Any mortgage holder may be able to participate in a forced placed flood insurance lawsuit if they had to purchase or maintain:
- A flood insurance policy which exceeded federal requirements
- More flood coverage than what was required under their mortgage agreements
- A second flood insurance policy after an acceptable policy was refused
- A second flood insurance policy even though they were already covered by a condominium association or otherwise
Allegedly, some banks who forced placed valueless flood insurance on borrowers received kickbacks for these purchases, the cost of which was added to the mortgage balance, deducted from their home equity account or otherwise expensed to the borrower.
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