Forced Placed Flood Insurance Complaints?
Last Updated on February 4, 2026
Investigation Complete
Attorneys working with ClassAction.org have finished their investigation into this matter. Check back for any potential updates. You can also sign up for our free newsletter for the latest in class action news and settlements.
If you still have questions about your rights, contact an attorney in your area as there is a time limit for filing all lawsuits. The information on this page was posted when the investigation began and is now for reference only.
Free Consumer Tools:
- Open and Current Class Action Lawsuit Settlements and Rebates
- Open and Current Class Action Lawsuit List, Investigations
- Class Action Lawsuit and Settlement News
- Free Class Action Lawsuit Database
Consumers who took out a mortgage from any of the following companies may have been forced or coerced into buying an excessive, second or unnecessary flood insurance policy:
- Sovereign Bank
- AIG Federal Savings Bank
- First Magnus Financial Corp.
- Merrill Lynch Credit Corp.
- PHH Mortgage Corp.
- Novastar Mortgage Inc.
- H&R Block Mortgage Corp.
- BB&T Corp.
- Sierra Pacific Mortgage
- Guaranty Bank
- TD Bank
- PNC Bank
- U.S. Bank
- Ocwen
- Fifth Third Bank
- Fidelity
- Capital One
- Mid America Bank
- BNY Mellon
- Regions
- Netbank
- Saxon Mortgage
- Royal Bank of Canada
- MBNA
- Citizens Bank
- Citibank
It has been alleged that certain mortgage companies have been force placing costly, excessive and potentially valueless coverage on their borrowers, who must pay for the high costs of these policies.
Forced Placed Flood Insurance
While the banks above have not been named among those engaging in questionable forced placed flood insurance practices, homeowners who borrowed from other establishments have made complaints about having to pay costly and excessive flood insurance policies and Class Action.org would like to determine whether other borrowers were subjected to similar practices. While banks and mortgage lenders can legally force place flood insurance should coverage lapse or fail to meet standard requirements, it is believed that some financial establishments are taking advantage of this permission. Typically, forced-placed flood insurance, which is expensed to the borrower, is almost always more expensive than the coverage the consumer could have bought themselves. Furthermore, it has been alleged that certain banks have been force placing flood insurance when it was not necessary or provided no additional value to the homeowner.
Before commenting, please review our comment policy.