Forced into Buying Excessive Flood Insurance?
Last Updated on June 27, 2017
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Citigroup Mortgage Holders: If you were forced or coerced into buying an excessive flood insurance policy, you may have legal recourse. Class Action.org is investigating claims that certain mortgage companies have been forcing loan holders to purchase or maintain flood insurance policies that are unnecessary, overly expensive, or otherwise excessive. While Citigroup has not been named among the mortgage companies engaging in these questionable practices, many homeowners who have borrowed from other establishments have complained that they were forced into paying the high premiums of an unnecessary, second or excessive flood insurance policy.
Lawsuits for Forced Flood Insurance
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
In some cases, it has been alleged that banks who forced placed valueless flood insurance on mortgage holders received commissions 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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