American Home Mortgage Holders: If you were forced or coerced into purchasing an excessive flood insurance policy, you may have legal recourse to collect compensation for the expenses associated with this coverage. Class Action.org is looking into claims that certain mortgage companies have been forcing borrowers to buy or maintain flood insurance policies which are overly expensive, unnecessary or otherwise excessive. While American Home Mortgage Corp. has not been named among the establishments engaging in these questionable practices, many homeowners who have borrowed from other mortgage companies and banks have complained that they were forced into paying the high premiums of an unnecessary, second or excessive flood insurance policy.
Force Placed Flood Coverage Lawsuits
Any mortgage holder may be able to participate in a forced placed flood insurance lawsuit if they had to purchase or maintain:
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
A flood insurance policy which exceeded federal requirements
More flood coverage than what was required under their mortgage agreements
Reportedly, some of the banks who forced placed valueless flood insurance on mortgage holders received kickbacks for these purchases, the cost of which was added to the mortgage balance, deducted from the consumer's home equity account or otherwise expensed to the borrower.
Complaints of Excessive, Forced Placed Flood Insurance
If your mortgage company or bank unnecessarily forced placed flood insurance policy on your property, you may have legal recourse.