Forced Placed Flood Insurance Complaints?

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:

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.

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