First Horizon Mortgage Holders: Were you forced or coerced into buying an excessive flood insurance policy? If so, you may have legal recourse to seek compensation for the additional costs associated with this coverage. Class Action.org is investigating allegations that certain mortgage companies have been forcing loan holders to purchase or maintain flood insurance policies which are unnecessary, overly expensive, or otherwise excessive. While First Horizon Home Loan Corp. has not been named among the mortgage companies participating in these practices, many consumers who have borrowed from other establishments have complained that they were forced into paying the high premiums of an excessive, unnecessary or second flood insurance policy.
Lawsuits for Excessive, Force Placed Flood Insurance
Any mortgage holder may be able to participate in a forced placed flood insurance lawsuit if they had to purchase or maintain:
More flood coverage than what was required under their mortgage agreements
A flood insurance policy which exceeded federal requirements
A second flood insurance policy even though they were already covered by a condominium association or otherwise
A second flood insurance policy after an acceptable policy was refused
In some instances, 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.