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Consumer Fraud

Flood Insurance Force Placed By Your Lender?

This Alert Affects:

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

Company(ies)
M&T Bank, Fifth Third, Dovenmuhle, Provident Funding, Flagstar and Capital One
Additional Details
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.
Type of Lawsuit
Class Action

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.

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
Mar 10, 2014
Newly Filed / Newly Settled

Wells Fargo To Settle Force-Placed Insurance Class Action

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Force-placed insurance burdens homeowners with unnecessary debt while letting banks profit from questionable financial practices and arrangements.… More

Aug 8, 2012
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Bank of America Force-Placed Flood Insurance Suit Can Proceed

by Staff

In an extremely important decision, Judge Michael Simon of the United States District Court for the District of Oregon ruled that a nationwide class action lawsuit alleging that Bank of America illegally force-placed flood insurance could continue.… More

Jul 26, 2012
Consumer Fraud

Florida Leads the Nation in Force-Placed Insurance

by Staff

As reported by the Sun-Sentinel, Florida was the site of 35% of the country's force-placed insurance in 2011, totaling $1.2 billion.… More

May 25, 2012
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US Bank Lawsuit for Force Placed Flood Insurance

by Staff

U.S. Bank is the target of a new potential class action lawsuit that alleges the company forced placed flood insurance on mortgage holders in illegal amounts and through questionable methods.… More

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